PXT Parex Resources Inc

Parex Resources Inc. (“Parex” or the “Company”) (TSX: PXT) is pleased to announce its financial and operating results for the three-month period ended June 30, 2024, the declaration of its Q3 2024 regular dividend of C$0.385 per share, as well as an operational update. All amounts herein are in United States Dollars (“USD”) unless otherwise stated.

“In the first half of 2024, we enhanced our free funds flow profile by roughly 80% year-over-year compared to 2023. These strong financial results were driven by our core Cabrestero and LLA-34 assets, as well as reduced capital expenditures,” commented Imad Mohsen, President & ChiefExecutive Officer.

“For the second half of 2024, we have paused activity at Arauca due to lower-than-expected results, and reallocated capital to LLA-32 and Capachos where we are seeing success. Initial results from these areas support our outlook to grow production into year end and meet the lower end of our annual production guidance range, while we actively work on the delivery of our high-impact, big ‘E’ exploration wells at Arantes (LLA-122) and Hidra (VIM-1)."

Key Highlights

• Generated Q2 2024 funds flow provided by operations ("FFO")(1) of $181 million and FFO per share(2)(3) of $1.77.
• Successfully drilled an unbooked stepout from a pre-existing field at LLA-32(4), with the drilling of up to three more follow-up wells planned for H2 2024.
• Realizing positive results from the polymer injection pilot at Cabrestero(5), with a full field expansion currently being designed and evaluated.
• FY 2024 average production guidance of 54,000 to 60,000 boe/d and capital expenditure guidance of $390 to $430 million are trending toward the lower end of their respective ranges.
• Declared Q3 2024 regular dividend of C$0.385 per share(7) or C$1.54 per share annualized.
• Repurchased approximately 2.7 million shares YTD 2024 under the Company's current normal course issuer bid ("NCIB").

Q2 2024 Results

• Quarterly average oil & natural gas production was 53,568 boe/d(8), comparable to Q2 2023 and Q1 2024; increases in the Northern Llanos were offset by lower production at LLA-34 and fields in the Southern Llanos.
• Grew production per share(3)(7) by 3% compared to Q2 2023, from steady production and the reduction of outstanding shares through the Company's NCIB programs.
• Realized net income of $4 million or $0.04 per share basic(3).
• Generated quarterly FFO(1) of $181 million and FFO per share(2)(3) of $1.77, a 17% increase and a 22% increase from Q2 2023, respectively; during the quarter, a $21 million one-time foreign exchange gain was realized related to the settlement of the Company's 2023 Colombian tax payable.
• Produced an operating netback(2) of $46.32/boe and an FFO netback(2) of $37.34/boe from an average Brent price of $85.03/bbl.
• Incurred $98 million of capital expenditures(6), primarily from activities at Arauca, LLA-34, LLA-32 and LLA-122.
• Generated $83 million of free funds flow(6) that was used for return of capital initiatives as well as $10 million of bank debt repayment; working capital surplus(1) was $34 million and cash $119 million at quarter end.
• Paid a C$0.385 per share(7) regular quarterly dividend and repurchased 1,298,300 shares.

(1) Capital management measure. See “Non-GAAP and Other Financial Measures Advisory.”(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory.”(3) Per share amounts (with the exception of dividends) are based on weighted-average common shares; dividends paid per share are based on the number of common shares outstanding at each dividend date.(4) 87.5% W.I.(5) 100% W.I.(6) Non-GAAP financial measure. See “Non-GAAP and Other Financial Measures Advisory.”(7) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory."(8) See "Operational and Financial Highlights" for a breakdown of production by product type.

Operational and Financial Highlights	Three Months Ended						Six Months Ended
(unaudited)	Jun. 30,		Jun. 30,		Mar. 31,		Jun. 30,
	2024		2023		2024		2024
Operational
Average daily production
Light Crude Oil and Medium Crude Oil (bbl/d)	9,541		7,982		7,237		8,389
Heavy Crude Oil (bbl/d)	43,229		45,644		45,543		44,386
Crude Oil (bbl/d)	52,770		53,626		52,780		52,775
Conventional Natural Gas (mcf/d)	4,788		2,964		3,348		4,068
Oil & Gas (boe/d)(1)	53,568		54,120		53,338		53,453
Operating netback ($/boe)
Reference price - Brent ($/bbl)	85.03		77.84		81.87		83.42
Oil & gas sales(4)	75.21		67.13		70.80		73.03
Royalties(4)	(12.54	)	(11.15	)	(11.21	)	(11.88	)
Net revenue(4)	62.67		55.98		59.59		61.15
Production expense(4)	(12.95	)	(9.14	)	(12.64	)	(12.79	)
Transportation expense(4)	(3.40	)	(3.51	)	(3.40	)	(3.40	)
Operating netback ($/boe)(2)	46.32		43.33		43.55		44.96
Funds flow provided by operations netback ($/boe)(2)	37.34		31.86		31.32		34.37
Financial ($000s except per share amounts)
Net income	3,845		101,415		60,093		63,938
Per share - basic(6)	0.04		0.95		0.58		0.62
Funds flow provided by operations(5)	180,952		154,842		148,307		329,259
Per share - basic(2)(6)	1.77		1.45		1.43		3.20
Capital expenditures(3)	97,797		121,309		85,421		183,218
Free funds flow(3)	83,155		33,533		62,886		146,041
EBITDA(3)	195,940		139,881		192,078		388,018
Adjusted EBITDA(3)	230,547		191,584		188,228		418,775
Long-term inventory expenditures	9,817		20,903		3,843		13,660
Dividends paid	28,528		30,101		28,531		57,059
Per share - Cdn$(4)	0.385		0.375		0.375		0.760
Shares repurchased	21,367		25,474		15,291		36,658
Number of shares repurchased (000s)	1,298		1,260		920		2,218
Outstanding shares (end of period) (000s)
Basic	101,616		106,194		102,914		101,616
Weighted average basic	102,259		106,830		103,474		102,866
Diluted(8)	102,528		106,962		103,829		102,528
Working capital surplus (deficit)(5)	34,156		(2,957	)	55,901		34,156
Bank debt(7)	50,000		—		60,000		50,000
Cash	119,468		133,375		61,052		119,468

(1) Reference to crude oil or natural gas in the above table and elsewhere in this press release refer to the light and medium crude oil and heavy crude oil and conventional natural gas, respectively, product types as defined in National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities.(2) Non-GAAP ratio. See “Non-GAAP and Other Financial Measures Advisory”.(3) Non-GAAP financial measure. See "Non-GAAP and Other Financial Measures Advisory".(4) Supplementary financial measure. See "Non-GAAP and Other Financial Measures Advisory".(5) Capital management measure. See "Non-GAAP and Other Financial Measures Advisory".(6) Per share amounts (with the exception of dividends) are based on weighted average common shares. Dividends paid per share are based on the number of common shares outstanding at each dividend record date.(7) Syndicated bank credit facility borrowing base of $200.0 million as at June 30, 2024. (8) Diluted shares as stated include common shares and stock options outstanding at period end; June 30, 2024 closing price was C$21.92 per share.

Operational Update

Cabrestero and LLA-34(1)(2)

The Cabrestero and LLA-34 blocks had average production of over 42,000 bbl/d of heavy crude oil (net) combined in Q2 2024. At both blocks, weather-associated flooding in June 2024 adversely affected production, which has since normalized.

At LLA-34, secondary recovery from the initial waterflood injection patterns is performing strongly, with two additional patterns planned forH2 2024.

At Cabrestero, the waterflood patterns are fully implemented, with the Company focused on continuing to ramp-up injection rates. Parex is also monitoring its polymer injection pilot that is showing positive results, with a full field expansion currently being designed and evaluated.(1) Cabrestero: 100% W.I.(2) LLA-34: 55% W.I.

LLA-32 - Exploitation Update(1)

Near the end of Q2 2024, the Company successfully drilled an unbooked stepout well from a pre-existing field at LLA-32. Parex has since drilled a follow-up appraisal well, which is being used to determine the areal extent of the oil field. Based on success to date, development runway on the block is emerging, with multiple appraisal and development wells that can be drilled.(1) 87.5% W.I.

Northern Llanos - Arauca & Capachos Update(1)(2)

Following strong initial production from the Arauca Block via the Arauca-8 well, water intrusion from an upper, non-producing formation reduced oil production. A workover focused on best restoring and optimizing production is planned for Q3 2024.

The Arauca-81 well is expected to be onstream in late Q3 2024. Following the drilling and completion of this well, the rig will move to execute the required workover at the Arauca-8 well. Once the workover is completed, the rig is expected to be released.

The Arauca-15 sidetrack came online in late Q2 2024, producing at lower-than-expected average rates of roughly 1,100 bbl/d of light crude oil (gross) in June 2024(3). Following the completion of this well, the rig was relocated to Capachos, where it started a three-well campaign with the first well spud in late Q2 2024. This move allows Parex time to analyze Arauca's initial results before proceeding with the drilling of the Arauca-12 well, expected in 2025.

The Company expects the Arauca field to produce 2,000 to 4,000 bbl/d of light crude oil (gross) in H2 2024. With underperformance to date, Parex is reallocating current year Arauca capital to LLA-32(4) and Capachos drilling.(1) Arauca: Business Collaboration Agreement with Ecopetrol S.A. (Parex 50% Participating Share); Ecopetrol S.A. currently holds 100% of the working interest in the Convenio Arauca while the assignment procedure is pending.(2) Capachos: 50% W.I.(3) Short-term production rate. See "Oil & Gas Matters Advisory."(4) 87.5% W.I.

Big 'E' Exploration - High-Impact Targets with Transformational Potential

The drilling of Parex's first well in the high-potential Colombian Foothills, Arantes at LLA-122(1), continues to progress. Although the timeline has been extended due to previous mechanical issues and a revised total depth based on recalibrated seismic analysis, the well is currently at roughly 16,500 feet, with a target depth of approximately 19,500 feet. The well is expected to reach total depth in late Q3 2024.

Parex continues to progress the pre-drill work for the Hidra well at VIM-1(1), which is roughly 15 kilometers from the Company's La Belleza discovery. The well is expected to spud in Q3 2024.

As the drilling rig has moved out of the Arauca Block and adjacent LLA-38 Block, Parex plans to replace the drilling of the Berillo Oeste prospect with an exploration well at Capachos, which is expected to spud by year end(1)(2).

(1) 50% W.I.

(2) Subject to partner approval.

Production Outlook and 2024 Corporate Guidance

The Company is positioned to grow production into year-end by executing a workover at Arauca-8, bringing online new wells at Arauca and Capachos, in addition to multiple planned appraisal and development wells at LLA-32.

Parex's FY 2024 average production guidance of 54,000 to 60,000 boe/d and capital expenditure guidance of $390 to $430 million are trending toward the lower end of their respective ranges.

Lower production primarily reflects underperformance at Arauca as well as previously disclosed temporary shut-ins in the Northern Llanos, while lower capital reflects reduced spending at Arauca and LLA-38, with some offset from increased spending at LLA-32, LLA-122 and Capachos.

Return of Capital Update

Q3 2024 Dividend

Parex’s Board of Directors have approved a Q3 2024 regular dividend of C$0.385 per share to be paid on September 16, 2024, to shareholders of record on September 9, 2024. The Company first initiated a regular quarterly dividend at C$0.125 per share in 2021.

This regular dividend payment to shareholders is designated as an “eligible dividend” for purposes of the Income Tax Act (Canada).

Active Share Buyback Program Under Current Normal Course Issuer Bid

As at July 30, 2024, Parex has repurchased approximately 2.7 million shares under its current NCIB at an average price of C$22.15 per share, for total consideration of roughly C$59 million.

Q2 2024 Results - Conference Call & Video Webcast

Parex will host a conference call and video webcast to discuss its Q2 2024 results on Thursday, August 1, 2024, beginning at 9:30 am MT (11:30 am ET). To participate in the conference call or video webcast, please see the access information below:

Conference ID:Participant Toll-Free Dial-In Number:Participant Toll Dial-In Number:Webcast:

1 335 3351-888-550-55841-646-960-0157https://events.q4inc.com/attendee/542316564

About Parex Resources Inc.

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

For more information, please contact:

Mike KruchtenSenior Vice President, Capital Markets & Corporate PlanningParex Resources Inc. 403-517-1733investor.relations@parexresources.com

Steven EirichInvestor Relations & Communications AdvisorParex Resources Inc.587-293-3286investor.relations@parexresources.com

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Non-GAAP and Other Financial Measures Advisory

This press release uses various “non-GAAP financial measures”, “non-GAAP ratios”, “supplementary financial measures” and “capital management measures” (as such terms are defined in NI 52-112), which are described in further detail below. Such measures are not standardized financial measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. Investors are cautioned that non-GAAP financial measures should not be construed as alternatives to or more meaningful than the most directly comparable GAAP measures as indicators of Parex's performance.

These measures facilitate management’s comparisons to the Company’s historical operating results in assessing its results and strategic and operational decision-making and may be used by financial analysts and others in the oil and natural gas industry to evaluate the Company’s performance. Further, management believes that such financial measures are useful supplemental information to analyze operating performance and provide an indication of the results generated by the Company's principal business activities.

Set forth below is a description of the non-GAAP financial measures, non-GAAP ratios, supplementary financial measures and capital management measures used in this press release.

Non-GAAP Financial Measures

Capital expenditures, is a non-GAAP financial measure which the Company uses to describe its capital costs associated with oil and gas expenditures. The measure considers both property, plant and equipment expenditures and exploration and evaluation asset expenditures which are items in the Company’s statement of cash flows for the period.

	For the three months ended									For the six monthsended
	Jun. 30,			Jun. 30,			Mar. 31,			Jun. 30,
($000s)		2024			2023			2024			2024
Property, plant and equipment expenditures	$	49,214		$	82,999		$	40,831		$	90,045
Exploration and evaluation expenditures		48,583			38,310			44,590			93,173
Capital expenditures	$	97,797		$	121,309		$	85,421		$	183,218

Free funds flow, is a non-GAAP financial measure that is determined by funds flow provided by (used in) operations less capital expenditures. The Company considers free funds flow to be a key measure as it demonstrates Parex’s ability to fund return of capital, such as the NCIB and dividends, without accessing outside funds and is calculated as follows:

	For the three months ended										For the six monthsended
		Jun. 30,			Jun. 30,			Mar. 31,			Jun. 30,
($000s)		2024			2023				2024			2024
Cash provided by (used in) operating activities	$	222,782		$	(36,612	)		$	97,412		$	320,194
Net change in non-cash working capital		(41,830	)		191,454				50,895			9,065
Funds flow provided by operations		180,952			154,842				148,307			329,259
Capital expenditures		97,797			121,309				85,421			183,218
Free funds flow		83,155			33,533				62,886			146,041

EBITDA, is a non-GAAP financial measure that is defined as net income adjusted for finance income and expenses, income tax expense (recovery) and depletion, depreciation and amortization.

Adjusted EBITDA, is a non-GAAP financial measure defined as EBITDA adjusted for non-cash impairment charges, unrealized foreign exchange gains (losses), unrealized gains (losses) on risk management contracts and share-based compensation expense.

The Company considers EBITDA and Adjusted EBITDA to be key measures as they demonstrates Parex’s profitability before finance income and expenses, taxes, depletion, depreciation and amortization and other non-cash items. A reconciliation from net income to EBITDA and Adjusted EBITDA is as follows:

	For the three months ended									For the six months ended
		Jun. 30,			Jun. 30,			Mar. 31,			Jun. 30,
($000s)		2024			2023			2024			2024
Net income	$	3,845		$	101,415		$	60,093		$	63,938
Adjustments to reconcile net income to EBITDA:
Finance income		(1,097	)		(5,106	)		(1,257	)		(2,354	)
Finance expense		5,421			4,253			5,194			10,615
Income tax expense (recovery)		130,888			(6,308	)		75,817			206,705
Depletion, depreciation and amortization		56,883			45,627			52,231			109,114
EBITDA	$	195,940		$	139,881		$	192,078		$	388,018
Non-cash impairment charges		4,661			55,021			—			4,661
Share-based compensation expense		5,770			7,497			(2,463	)		3,307
Unrealized foreign exchange loss (gain)		24,176			(10,815	)		(1,387	)		22,789
Adjusted EBITDA	$	230,547		$	191,584		$	188,228		$	418,775

Non-GAAP Ratios

Operating netback per boe, is a non-GAAP ratio that the Company considers to be a key measure as it demonstrates Parex’ profitability relative to current commodity prices. Parex calculates operating netback per boe as operating netback (calculated as oil and natural gas sales from production, less royalties, operating, and transportation expense) divided by the total equivalent sales volume including purchased oil volumes for oil and natural gas sales price and transportation expense per boe and by the total equivalent sales volume excluding purchased oil volumes for royalties and operating expense per boe.

Funds flow provided by operations netback per boe or FFO netback per boe, is a non-GAAP ratio that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by produced oil and natural gas sales volumes. The Company considers funds flow provided by operations netback per boe to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to current commodity prices.

Basic funds flow provided by operations per share or FFO per share, is a non-GAAP ratio that is calculated by dividing funds flow provided by operations by the weighted average number of basic shares outstanding. Parex presents basic funds flow provided by operations per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share.The Company considers basic funds flow provided by operations per share or FFO per share to be a key measure as it demonstrates Parex’s profitability after all cash costs relative to the weighted average number of basic shares outstanding.

Capital Management Measures

Funds flow provided by operations, is a capital management measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital. The Company considers funds flow provided by operations to be a key measure as it demonstrates Parex’s profitability after all cash costs. A reconciliation from cash provided by (used in) operating activities to funds flow provided by operations is as follows:

	For the three months ended									For the six monthsended
		Jun. 30,			Jun. 30,			Mar. 31,			Jun. 30,
($000s)		2024			2023			2024			2024
Cash provided by (used in) operating activities	$	222,782		$	(36,612	)	$	97,412		$	320,194
Net change in non-cash working capital		(41,830	)		191,454			50,895			9,065
Funds flow provided by operations	$	180,952		$	154,842		$	148,307		$	329,259

Working capital surplus (deficit), is a capital management measure which the Company uses to describe its liquidity position and ability to meet its short-term liabilities. Working capital surplus (deficit) defined as current assets less current liabilities.

	For the three months ended										For the six monthsended
		Jun. 30,			Jun. 30,			Mar. 31,			Jun. 30,
($000s)		2024			2023				2024			2024
Current assets	$	281,846		$	322,146			$	276,113		$	281,846
Current liabilities		247,690			325,103				220,212			247,690
Working capital surplus (deficit)	$	34,156		$	(2,957	)		$	55,901		$	34,156

Supplementary Financial Measures

"Oil and natural gas sales per boe" is determined by sales revenue excluding risk management contracts, as determined in accordance with IFRS, divided by total equivalent sales volume including purchased oil volumes.

"Royalties per boe" is comprised of royalties, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

"Net revenue per boe" is comprised of net revenue, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

"Production expense per boe" is comprised of production expense, as determined in accordance with IFRS, divided by the total equivalent sales volume and excludes purchased oil volumes.

"Transportation expense per boe" is comprised of transportation expense, as determined in accordance with IFRS, divided by the total equivalent sales volumes including purchased oil volumes.

"Dividends paid per share" is comprised of dividends declared, as determined in accordance with IFRS, divided by the number of shares outstanding at the dividend record date.

"Production per share growth" is comprised of the Company's total oil and natural gas production volumes divided by the weighted average number of basic shares outstanding. Parex presents production per share whereby per share amounts are calculated using weighted-average shares outstanding, consistent with the calculation of earnings per share. Growth is determined in comparison to the comparative period.

Oil & Gas Matters Advisory

The term "Boe" means a barrel of oil equivalent on the basis of 6 Mcf of natural gas to 1 barrel of oil ("bbl"). Boe’s may be misleading, particularly if used in isolation. A boe conversation ratio of 6 Mcf: 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1Bbl, utilizing a conversion ratio at 6 Mcf: 1 Bbl may be misleading as an indication of value.

This press release contains a number of oil and gas metrics, including, operating netbacks and FFO netbacks. These oil and gas metrics have been prepared by management and do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of the future performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses these oil and gas metrics for its own performance measurements and to provide security holders with measures to compare the Company's operations over time. Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented in this news release, should not be relied upon for investment or other purposes.

Any reference in this press release to short-term production rates are useful in confirming the presence of hydrocarbons, however such rates are not determination of the rates at which such wells will continue production and decline thereafter and readers are cautioned not to place reliance on such rates in calculating the aggregate production of Parex.

Distribution Advisory

The Company's future shareholder distributions, including but not limited to the payment of dividends and the acquisition by the Company of its shares pursuant to an NCIB, if any, and the level thereof is uncertain. Any decision to pay further dividends on the common shares (including the actual amount, the declaration date, the record date and the payment date in connection therewith and any special dividends) or acquire shares of the Company will be subject to the discretion of the Board of Directors of Parex and may depend on a variety of factors, including, without limitation the Company's business performance, financial condition, financial requirements, growth plans, expected capital requirements and other conditions existing at such future time including, without limitation, contractual restrictions and satisfaction of the solvency tests imposed on the Company under applicable corporate law. Further, the actual amount, the declaration date, the record date and the payment date of any dividend are subject to the discretion of the Board. There can be no assurance that the Company will pay dividends or repurchase any shares of the Company in the future.

Advisory on Forward Looking Statements

Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", “prospective”, "project", "intend", "believe", "should", "anticipate", "estimate", “forecast”, "guidance", “budget” or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company’s management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.

In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to: the Company’s focus, plans, priorities and strategies; Parex's plan for three follow-up appraisal wells at the LLA-32 block for H2 2024; average production guidance and capital expenditure guidance; additional planned waterflood injection patterns at the LLA-34 block for H2 2024; drilling plans at the LLA-32 block; Parex's planned workover at the Arauca-8 well and expectations related thereto; that the Arauca-81 well is expected to be onstream in Q3 2024 and plans for the applicable rig; expectations with respect to the drilling of the Arauca-12 well and production from the Arauca field in H2 2024; anticipated timing of results from Arantes at the LLA-122 block; timing expectations for spudding the Hidra well at the VIM-1 block and the Northern Llanos exploration well; that the Company is positioned to grow production into year-end by executing workovers at the Arauca block, bringing online new wells at the Arauca and Capachos blocks, in addition to multiple appraisal and development wells at the LLA-32 block; the anticipated terms of the Company's Q3 2024 regular quarterly dividend, including its expectation that it will be designated as an "eligible dividend"; and the anticipated date and time of Parex's conference call to discuss Q2 2024 results.

These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; prolonged volatility in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by OPEC and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities in Canada and Colombia; the risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex's evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not have sufficient financial resources in the future to provide distributions to its shareholders; the risk that the Board may not declare dividends in the future or that Parex's dividend policy changes; the risk that Parex may not be responsive to changes in commodity prices; the risk that Parex may not meet its production guidance for the year ended December 31, 2024; the risk that Parex's 2024 capital expenditures may be greater than anticipated; the risk that plans and expectations related to Parex's drilling program as disclosed herein do not materialize as expected and/or at all; the risk that Parex may not be able to increase production into year end; and other factors, many of which are beyond the control of the Company.

Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).

Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex's operations and infrastructure; recoverability of reserves and future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements as needed; that Parex's conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex's evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex's production and reserves volumes and the assumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligations required to retain its rights to explore, develop and exploit any of its undeveloped properties; that Parex will have sufficient financial resources to pay dividends and acquire shares pursuant to its NCIB in the future; that Parex is able to execute its plans with respect to the Company's drilling program as disclosed herein; and other matters.

Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

This press release contains information that may be considered a financial outlook under applicable securities laws about the Company's potential financial position, including, but not limited to; Parex's 2024 capital expenditure guidance; and the anticipated terms of the Company's Q3 2024 regular quarterly dividend including its expectation that it will be designated as an "eligible dividend", all of which are subject to numerous assumptions, risk factors, limitations and qualifications, including those set forth in the above paragraphs. The actual results of operations of the Company and the resulting financial results will vary from the amounts set forth in this press release and such variations may be material. This information has been provided for illustration only and with respect to future periods are based on budgets and forecasts that are speculative and are subject to a variety of contingencies and may not be appropriate for other purposes. Accordingly, these estimates are not to be relied upon as indicative of future results. Except as required by applicable securities laws, the Company undertakes no obligation to update such financial outlook. The financial outlook contained in this press release was made as of the date of this press release and was provided for the purpose of providing further information about the Company's potential future business operations. Readers are cautioned that the financial outlook contained in this press release is not conclusive and is subject to change.

The following abbreviations used in this press release have the meanings set forth below:

bblbblsbbl/dboeboe/dmcfmcf/dW.I.

one barrelbarrelsbarrels per daybarrels of oil equivalent of natural gas; one barrel of oil or natural gas liquids for six thousand cubic feet of natural gasbarrels of oil equivalent of natural gas per daythousand cubic feetthousand cubic feet per dayworking interest

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