Mr. Mike Kruchten reports

PAREX RESOURCES ANNOUNCES PRELIMINARY FIRST QUARTER RESULTS

Parex Resources Inc. has released select, preliminary results for the three-month period ended March 31, 2026, based on information currently available to management. The company is providing this information to ensure fair and transparent disclosure to all parties ahead of a proposed debt financing in connection with its acquisition of Frontera Energy's Colombian E&P (exploration and production) assets, as previously announced on March 10, 2026. All amounts herein are in U.S. dollars unless otherwise stated.

All figures reported below with respect to the first quarter of 2026 are preliminary and are subject to change and adjustment as Parex's first quarter 2026 financial results are finalized. Accordingly, investors are cautioned not to place undue reliance on the following guidance. The company does not intend to continue to provide preliminary results in the future. The preliminary results provided in this news release constitute forward-looking statements within the meaning of applicable securities laws, are based on a number of assumptions and are subject to a number of risks and uncertainties. Actual results may differ materially.

Preliminary Q1 2026 results

The company expects:

• Average production of 44,735 barrels of oil equivalent per day, compared with 43,658 boe/d in Q1 2025;
• To recognize net income of $5-million, or five cents per share, compared with $81-million, or 82 cents per share in Q1 2025; the expected decrease is largely related to unrealized loss on commodity risk management contracts, an increase in deferred tax expense, higher cash-settled share-based compensation expense and the recognition of one-time costs, partially offset by lower current income tax;
• Previously, the company had hedged Brent crude oil prices for Q2 2026 on approximately 25 per cent of its planned net production; in early Q2 2026, these hedging positions were unwound at a cost of roughly $29-million; the company is currently unhedged for 2026, with full exposure to higher commodity prices;
• To generate FFO (funds from operations) of $114 million and FFO per share of $1.18, compared with $122-million and $1.24 per share in Q1 2025; expected one-time costs in Q1 2026 total approximately $17-million, comprising: a Colombian temporary corporate wealth tax of $7-million; site restoration costs of $7-million, with a significant portion expected to be recovered through insurance; and $3-million of project and other G&A (general and administration) costs;
• To recognize adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $133-million, compared with $135-million in Q1 2025;
• To incur $91-million of capital expenditures, compared with $57-million in Q1 2025. The increase from the prior year is primarily related to the ramping up of activity at the Orito and Occidente blocks in the Putumayo and LLA-32 and LLA-111 in the Llanos, partially offset by lower activity at Cabrestero and LLA-74 in the Llanos;
• Bank debt of $175-million as at March 31, 2026, compared with $50-million as at March 31, 2025; the increase was primarily due to the public acquisition of 6.1 million GeoPark Ltd. common shares and a $75-million deposit related to the Frontera transaction.

As previously announced, Parex expects to release its Q1 2026 financial and operating results before markets open on Tuesday, May 12, 2026, and is planning to host a conference call and webcast beginning at 9:30 a.m. MT (11:30 a.m. ET).

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters are in Calgary, Canada, with an operating office in Bogota, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

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