CALGARY - Parex Resources Inc. ('Parex' or the 'Company') (TSX: PXT), is a company headquartered in Calgary, Alberta that focuses on sustainable, conventional oil and gas production.
All amounts herein are in United States Dollars ('USD') unless otherwise stated.
Parex is pleased to announce its 2022 budget guidance and provide an update to its framework for returning capital to shareholders. Imad Mohsen, President and CEO of Parex commented: 'One of the elements that attracted me most to join Parex in early 2021 was the depth and quality of the Company's development, appraisal, and exploration portfolio in Colombia. We are excited to move forward with a plan that materially expands the boundaries of our current development properties while also unlocking substantial new opportunities within our production portfolio. Underpinning the plans is a portfolio with substantial exploitation potential that we believe can be unlocked using techniques which are unfamiliar in Colombia but long proven elsewhere. The returns of the organic 2022 development program are very compelling at $70/bbl Brent oil prices. Combined with our industry-leading balance sheet, our upgraded development program further strengthens Parex' ability to generate sustainable long-term growth in free funds flow(1) and return meaningful capital to shareholders. I am very proud of our team and confident in our ability to execute and deliver significant value for our shareholders.'
2022 Capital Expenditure Program: Building Long-term Sustainability
Parex has one of the deepest, most diversified, development and exploration portfolios in Colombia, and is excited to pursue additional organic opportunities in 2022 to maximize the return profile of our asset base and continue to build a sustainable business for the future.
In 2022, the Company will pursue a balanced approach to capital allocation. The planned 2022 capital expenditures are split between development, appraisal and exploration/new growth programs, and are expected to provide year-over-year annualized production growth of approximately 13% (at the mid-point of guidance). We believe this growth will be primarily driven by Capachos, Cabrestero, VIM-1, Arauca and Fortuna, and does not include any potential additional volumes from the estimated 15-18 gross wells in our appraisal and exploration program.
Contact:
Mike Kruchten
Tel: (403) 517-1733
Email: Investor.relations@parexresources.com
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' 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' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.
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; impact of the COVID-19 pandemic and the ability of the Company to carry on its operations as currently contemplated in light of the COVID-19 pandemic; 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; 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; risk that Brent oil prices are lower than anticipated; risk that Parex' evaluation of its existing portfolio of development and exploration opportunities is not consistent with its expectations; risk that initial test results are not indicative of future performance; risk that other formations do not contain the expected oil bearing sands; risk that Parex does not have sufficient financial resources in the future to pay a dividend; risk that the Board does not declare dividends in the future or that Parex' dividend policy changes 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.
PAREX RESOURCES INC. 
