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To: Goose94 who wrote (12834)	5/19/2015 9:14:54 AM
From: Goose94	Respond to of 203346

Parex Resources (PXT-T) Wayne Foo, President & CEO on BNN.ca Commodities @ 1140ET

To: Goose94 who wrote (12834)

11/20/2015 8:46:56 PM

From: Goose94

Read Replies (2) | Respond to of 203346

Parex Resources (PXT-T) Nov 2, '15 a company focused on Colombian oil exploration and production, announces its 2016 production and capital budget guidance. All amounts herein are in United States dollars ("USD") unless otherwise stated.

2016 Production and Base Capital Budget Guidance

Parex has developed a robust asset portfolio that allows for a sustainable, growing and a self-funded business model in a period of low oil prices. Assuming a full year 2016 Brent oil price scenario of $50 per barrel ("bbl"), our 2016 production and capital budget guidance is as follows:

1. Full Year Production: 30,200 bopd

2016 average production of approximately 30,200 barrels of oil per day ("bopd"), being an increase of 10% over our expected 2015 average production rate of approximately 27,400 bopd.

2. Maintenance Capital: Development $50 million

Drill 4 development wells on Block LLA-34;

Incorporates recent positive exploration and appraisal drilling results and strong base production rates;

Includes facilities development at Jacana and Chachalacha discoveries;

Maintenance capital keeps production consistent with the Q4 2015 forecast production rate of 28,500 bopd.

3. Development Growth Capital: Capachos Block $35 million

Drill 2 commitment development wells to earn and establish light oil production on the Ecopetrol farm-in Capachos block;

Drill a 3rd development well and install production facilities;

Oil production expected to commence mid-year 2016.

4. Growth Capital: Exploration Drilling $80 million

Fulfill our 2016 contractual drilling commitments of 10 exploration wells;

Provides production and reserve growth opportunities.

Brent Oil Price Scenario $50/barrel

(Estimated USD millions)
Maintenance Capital		$50
Development Growth: Capachos Block		$35
Exploration Growth		$80
2016 Base Capital		$165

Optional Positioning Growth Capital

If Brent oil prices exceed and are sustained above the $55/bbl level, we have the flexibility to allocate additional capital expenditures and thereby invest the incremental cash flow from such higher realized oil prices in 2016 with additional drilling and seismic. A range of potential additional opportunities totaling up to $90 million in capital expenditures is as follows:

Drill up to an additional 6 LLA-34 development wells and upgrade existing facilities;

Drill follow-up appraisal wells and build facilities related to 2016 exploration wells as appropriate;

Drill a Capachos Block exploration well (post earning capex is 50% WI);

Accelerate our Magdalena Basin exploration program including seismic on VMM-9 and exploration drilling on VIM-1.

Incremental Growth Capital Scenario (Optional)

Growth: Exploration Follow-Up (Development/Appraisal)		$40
Capachos Exploration Well		$10
Positioning: Magdalena Basin		$40
Optional Growth/Positioning Capital		Up to $90

Maintaining Balance Sheet Strength

We expect that our 2016 Base Capital budget of approximately $165 million will be fully funded from funds flow from operations. As at September 30 2015, Parex had no bank debt, an undrawn credit facility of $200 million and working capital of approximately $63 million.

Assuming a Brent oil price environment of $50/bbl, we expect 2016 operating cash costs per barrel, including operating and transportation costs to be comparable to our Q3 2015 financial results. However, for 2016 we forecast a lower total cost per barrel due to:

G&A: production growth and flat Canadian dollar/Colombian Pesos denominated costs;Income Tax Expense: estimated 2016 effective tax rate below 10% of Colombian segmented cash flows (current tax expense of approximately $10-$15 million or $1/bbl-$1.5/bbl) due to the tax restructuring transaction in Q3 2015.2016 Cash Netback Estimates

We have actively managed our portfolio and assets to remain profitable in a low oil price environment. Defining our cash netbacks as the operating netback less G&A, finance expenses and tax expenses, we forecast our 2016 cash netbacks as follows:

At Brent $40/bbl - $7/bbl

At Brent $50/bbl - $15/bbl

At Brent $60/bbl - $22/bbl

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction.

For more information please contact:
Mike Kruchten
Vice-President Corporate Planning and Investor Relations
Parex Resources Inc.
Phone: (403) 517-1733
Investor.relations@parexresources.com