2. Significant land base (2.2 mm gross acres)
Diversified production base
Experienced operator (>100 wells drilled)
Historical exploration success rate (50%)
Legend
Colombia Focused
2Corporate Presentation May 2014
3. Financial
Q1 2014 Operating Netback US $61.20/bbl
Q1 2014 Production 18,425 bopd
Q1 Funds Flow US $77 MM
Reserves 2P (Dec. 31, 2013) 32 MMboe1
Doubled 2P reserves over 2012 year-end
Capital Structure
Market capitalization at $11.50/share Cdn$1,270 MM
Convertible debenture PXT.DB Cdn$85 MM
(5.25% coupon & $10.15/share conversion with 2016 maturity)
Common shares outstanding (TSX listed)
Basic 110.4 MM
Fully Diluted 127.5 FD2 MM
Snapshot
(1) Parex net working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective December31, 2013.
(2) Fully diluted shares does not include out of the money options based on a share price of $11.50, but includes the diluted effect associated with PXT.DB.
3Corporate Presentation May 2014
4. Existing Fields: Development & Appraisal Drilling ~16,000 bopd
Exploration Drilling 1,500-2,500 bopd
New Play Concepts (types: heavy oil, tight sands, stratigraphic) “upside”
2014 Production* 17,500-18,500 bopd
*Second quarter production to average approximately 19,000 – 19,500 bopd, annual guidance under review.
2014 Guidance
Delivering cash flow funded year-over-year production growth Available to support
Exploration Success
#Wells Capex (Net $ million)
Gross Net Wells Facilities Other Total
Development /Appraisal (existing fields) 15 9.6 $54 $34 $2 $90
Exploration (proven plays) 19 11.5 $96 $20 $9 $125
New Play Concepts 3 2.3 $21 $5 $9 $35
Base (Firm) Total 37 23.4 $171 $59 $20 $250
Appraisal (Contingent) 8 4.7 $18 $12 $0 $30
4Corporate Presentation May 2014
5. Middle Magdalena Basin
VMM-11
Morpho
PP Velasquez
Palagua
Nare
40km
Cocorna
Parex Oil Fields
2014 Planned Activity
Colombia: Diversified & Extensive
Asset Base
Block Production Exploration
Development &
Appraisal
New Play
Types
Cabrestero
Cebucan
El Eden
LLA-24
LLA-26
LLA-29
LLA-30
LLA-40
LLA-57
Los Ocarros
Morpho
VMM-11
LLA-32
LLA-34
Gross Wells 19 15 3 Total 37
5Corporate Presentation May 2014
Parex Blocks Selected Oil Pools
40km
Llanos Basin
LLA-16 LLA-40
LLA-17
LLA-57
LLA-20
LLA-24
LLA-30
Meta River
Cubiro
Corcel
Balay
Cusiana &
Cupiagua
Rancho
Hermosa
Cravoviejo
Las Maracas
Los Ocarros
El Porton
Cabrestero
LLA-34
LLA-32
Santiago
LLA-26
Cebucan
Kona
Cerrero
Capachos
LLA-29
6. Proved + Probable
+ Possible
Proved + Probable Proved
2P Reserves Life
Index (1)
After Tax PV10
(USD MM)
Reserves* MMboe
31-Dec 09 - - - - -
31-Dec 10 10.4 5.8 1.1 - $149
31-Dec 11 17.6 10.7 4.9 2.6x $344
31-Dec 12 23.1 16.1 10.1 3.5x $450
31-Dec 13 49.9 32.0 17.4 5.1x $832
Track record of reserve category progression
Increasing reserve life index (RLI) & sustainability
Building A Sustainable Business
June 30, 2013 Company’s reported reserves were 3P-36.4 Mmboe, 2P-23.7 Mmboe and 1P-14.1 Mmboe
(1) RLI calculated using 2P year-end reserves divided by Q4 production annualized
*Reserves are independently evaluated by GLJ Petroleum Consultants Ltd.
6Corporate Presentation May 2014
7. Median Llanos
100 acres
Kona
300 acres
Low side closures
500 +1000 acres
Oil
Water
Sandstone
Shale
Las Maracas
300 acres
Bottom water drive Edge water drive Edge water drive
Structures: Progressively Larger
Corporate Presentation May 2014 7
8. Grow & Diversify Production
2014 Production Guidance under review
0
2
4
6
8
10
12
14
16
18
20
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Bopd(000)byblock
2010 2011 2012 2013 2014
LLA-16 LLA-20 Los Ocarros Cabrestero LLA-32 LLA-34 LLA-30 Other
8Corporate Presentation May 2014
9. Parex Exploration Life Cycle
Continue to deliver on our strategy to expand the asset base and added
meaningful positions for future sustainable growth
Develop
Concept
Acquire
Land
Test
Concept
Initial
Development
Expand
Land
Exploitation
Traditional
3-Ways
Low Side
Closures
Stratigraphic
Traps
New Plays
LLA-26, Cebucan
LLA-24, LLA-29 & LLA-30
Cabrestero, LLA-34
VMM-11, Morpho, Llanos Deep Sands, Capachos
9Corporate Presentation May 2014
10. Characterized by:
Parex’ deep basin knowledge & operational
experience
Producing light oil 30-37º API from 5 fields
Productive reservoirs: C7, Mirador,
Gacheta & Une
Ability to use fields as swing producers to
manage quarterly growth.
2014 Activity
Explore on blocks untested by Parex
exploration wells on LLA-26/40/57
Manage existing production
2 development wells
Ongoing recompletion program
Traditional Llanos Structures
Continue to exploit and manage producing fields
10Corporate Presentation May 2014
Discoveries
40km
LLA-40
La Casona Rumi
Las Maracas
Sulawesi
Kona
Celeus
Cumbre
LLA-16
LLA-17
LLA-57
LLA-20
Los Ocarros
El Porton
LLA -26
Cebucan
2014 Drilling
11. Acquired blocks in 2012 to develop concepts
and prove-up in 2013 with discoveries
Cabrestero (100% WI, Operator)
Akira - new play type low side closures
Facility start-up
LLA 34 (45% WI, Non-operated)
Increased new prospect inventory through 3D
seismic acquisition on western side
Significant development focus
LLA-32 (30% WI, Non-operated)
Kananaskis discovery
2 exploration wells to test
3 appraisal wells
Southern Llanos: Low Side Closures
Explore core position, appraise & develop discoveries, and leverage Parex’ costs and exploration know-how
Corporate Presentation May 2014 11
2013 3D Seismic
Corcel
Cabrestero
LLA-32
Jilguero
Santiago
Max
Tarotaro
LLA-34
Tigana
Tigana Sur
Kananaskis
Tua
Discoveries 2010/11 Seismic
20km
Maniceño -Bandola
Kitaro
Akira
12. 2013 3D SeismicDiscoveries 2010/11 Seismic
Verano Acquisition: Property Summary
Block
Parex
WI
Verano
WI
Close PXT
WI
LLA-17 40% 23% 63%
LLA-32 30% 40% 70%
LLA-34 45% 10% 55%
Acquisition subject to Verano shareholder vote. Refer to Parex news release dated May 13, 2014
Corporate Presentation May 2014 12
Cabrestero
LLA-32
Santiago
Max
Tarotaro
LLA-34
Tigana
Tigana Sur Tua
20km
Maniceño -Bandola
Kitaro
Akira
Kananaskis
Carmentea
Calona
13. LLA-30 (100% WI, Operator)
New Discoveries 2013:
Adalia-1 38° API at 1,000 bopd
Adalia-2 waiting on completion
Adalia-3 initial test of 38° API at 1,000 bopd
Exploration well in 2014
LLA-24 (100% WI, Operator)
New block for Parex:
Exploration well in 2014 & test concepts
New Play Type: Stratigraphic/Channels
First drilled in 2013 and analyzing stratigraphic concepts. Drilling off structure prospect to prove-up concept.
Corporate Presentation May 2014 13
LLA-20
LLA-24
LLA-29
LLA-30
20km
Discoveries
Adalia
14. Capachos (50% WI, Operator)
Ecopetrol partnership
ANH royalty contract
Large structure, light oil
Leverages our strengths:
low cost drilling
strong operator
working with communities
Capachos Farm-in
14Corporate Presentation May 2014
Capachos
LLA-16
LLA-40
LLA-17
LLA-57
15. VMM-11 (60% WI, Operator)
Farm-in to drill one well
Testing of new play concepts for cold heavy oil
production (CHOPS)
Builds on management’s success with Petro
Andina in Argentina’s Neuquén Basin
Morpho (100% WI, Operator)
Over 2000’ of gross pay in each of the Colorado
(Oligocene) and Eocene
Morpho-1 well completed in 3 of 6 Oligocene
sands, > 100 bopd
Next, new well & optimized frac program
Acquiring new 2D seismic allows us to apply a
resource concept over approximately 10,000 acres
New Play Concepts
New Play Concepts: applying proven technology in Colombia
15Corporate Presentation May 2014
Middle Magdalena Basin
VMM-11
Morpho
PP Velasquez
Palagua
Cocorna
Nare
40km
Discoveries Ocensa Pipeline
16. Llanos’ “Deep Basin”
Foothills: large oil & gas structures, US $75MM wells
Plains: small oil structures, US $5 – US $10MM wells
Transition Zone “Deep Basin”: undrilled, +US $25MM wells
Parex target US $10 – US $15 MM wells
Apply low cost operator advantage to explore the Llanos Transition Zone
Transition
Zone
Corporate Presentation May 2014 16
17. Expanding Capacity
New take-away capacity exceeds basin production growth
Source: Ecopetrol, 2013
0
500
1000
1500
2000
2500
2010 2011 2012 2013 2014 2015 2016
Colombian demand vs. Capacity* (mbd)
Fuel Oil
Third Parties production
Partners
Pipeline Capacity
*includes trucks
Diluent
Royalties
Ecopetrol’s Production
Total Capacity
Current Production
17Corporate Presentation May 2014
Growth Opportunity
2012 – 2014:
Crude Oil Pipeline – Key Projects
1. San Fernando - Monterrey System: +390 mbod
2. Bicentenario Phase 1: +120 mbod
3. Magdalena Medio System: +75 mbod
4. Caño Limón - Coveñas: +55 mbod
988
1,133
1,287 1,377
1,446
1,472
2,020
19. Proven Management’s track record
Exposure to Brent Oil Pricing LATAM exposure
Self-funded growth
Parex’ Value Proposition
Corporate Presentation May 2014 19
20. Appendix – Block Summary
1) Post closing Verano acquisition WI would be: LLA-17 63%, LLA-32 70% & LLA-34 55%
2) Working interests are subject to regulatory approval.
3) Farm-in agreement for 50% participating interest in the block, excluding Curiara Area, subsequent to fulfilling certain financial obligations.
4) Morpho is also subject to a 4% Net Profit Interest.
5) Farm-out agreement awarding 51% participating interest subsequent to fulfilling certain financial obligations.
Corporate Presentation May 2014
Block
Operated/
Non-Operated
Working Interest Partners Gross Acres Basin
LLA-16 Operated 100% N/A 157,611 Llanos
LLA-17(1) Operated 40% Geopark & Verano 108,726 Llanos
LLA-20 Operated 100% N/A 144,292 Llanos
LLA-24 Operated 100% N/A 147,100 Llanos
LLA-26 Operated 100% N/A 184,061 Llanos
LLA-29 Operated 100% N/A 69,914 Llanos
LLA-30 Operated 100% N/A 117,321 Llanos
LLA-32(1) Non-Operated 30% Verano, Apco & Geopark 100,325 Llanos
LLA-34(1) Non-Operated 45% Geopark & Verano 82,286 Llanos
LLA-40 Operated 50% Apco 163,090 Llanos
LLA-57 Operated 100% N/A 104,532 Llanos
Cabrestero Operated 100% N/A 29,562 Llanos
Capachos(2) Operated 50% Ecopetrol 64,175 Llanos
Cebucan Operated 100% N/A 109,150 Llanos
Cerrero(2) Operated 65% Perenco 108,973 Llanos
El Eden Operated 60% Petro America 109,249 Llanos
El Porton(3) Operated 50% Petro America 109,476 Llanos
Los Occarros Operated 50% Petro America 110,436 Llanos
Morpho(4) Operated 100% N/A 51,398 Middle Magdalena
VMM-11(2) Operated 60% Green Power 116,826 Middle Magdalena
Moruga(5)
(Trinidad)
Operated 32.8% Touchstone 7,443 -
20
21. (millions of US dollars, except per share amounts) 2014 2013 2012
Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1
OPERATING
Average realized prices, prior to hedging 103 104 102 106 99 110 109 106 108 108 117
Brent Price ($/bbl) 108 109 109 110 103 112 112 110 110 108 119
Vasconia ($/bbl) 101 104 102 106 99 108 106 103 103 104 115
Production (thousands of bopd) 18.4 15.9 17.3 16.2 15.5 14.4 11.4 12.7 10.9 10.4 11.7
FINANCIAL
Sales of crude oil 180 637 167 157 148 165 524 150 131 113 130
Funds flow from operations 77 270 76 68 66 60 242 54 42 61 84
Per share – basic 0.70 2.49 0.70 0.63 0.61 0.56 2.23 0.50 0.39 0.57 0.77
Net income (loss) 10 13 22 (28) 8 11 40 (16) 8 21 27
Per share – basic 0.09 0.20 0.20 (0.26) 0.07 0.10 0.37 (0.15) 0.07 0.19 0.25
Per share – diluted 0.09 0.18 0.18 (0.26) 0.04 0.05 0.31 (0.15) 0.07 0.09 0.25
EBITDA 97 325 92 82 80 72 258 46 62 68 83
Cash and cash equivalents 198 57 57 26 45 27 32 32 27 51 121
Working Capital 37 24 24 19 9 17 (13) (13) (9) (0.6) 116
Net Debt (1) 29 70 70 85 104 88 107 107 94 86 (31)
Capital Expenditures 62 234 59 50 78 47 268 65 51 93 59
Weighed average shares outstanding 109 108 108 108 108 109 108 108 108 108 108
Weighed average shares outstanding, diluted 111 124 124 108 130 129 126 110 109 117 118
TRADING STATISTICS
($, based on intra-day trading)
High 9.50 6.8 6.80 6.30 4.89 6.50 8.67 6.03 5.18 7.15 8.67
Low 6.59 4.05 5.60 4.10 4.05 4.39 4.07 4.27 3.85 4.29 6.49
Close (end of period) 9.50 6.58 6.58 5.83 4.12 4.63 5.80 5.80 4.83 4.72 7.04
Average daily volume (thousands) 360 216 258 193 203 210 236 235 148 335 264
Appendix – Summary of Quarterly Results
(Unaudited)
(1) Defined as WC+ Bank Debt + CD Face Value C$85 million.
Bank credit facility currently has a borrowing base of $150 million & Face value of debenture is Cdn $85 million with conversion price of Cdn $10.50/share.
Corporate Presentation May 2014 21
22. Certain statements in this document are “forward-looking statements”. Forward-looking statements are frequently
characterized by words such as “prospective”, “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”,
or other similar words, or statements that certain events or conditions “may” or “will” occur. Forward-looking statements are not
based on historical facts but rather on the expectations of management of the Company ("Management") regarding the
Company's future growth, results of operations, production, plans for and results of drilling activity, business prospects and
opportunities. Such forward-looking statements reflect Management's current beliefs and assumptions and are based on
information currently available to Management. In particular, this document contains forward-looking statements regarding, but
not limited to, the Company's expected 2013 production rates and Parex' drilling plans. Forward-looking statements involve
significant known and unknown risks and uncertainties. A number of factors could cause actual results to differ materially from
the results discussed in the forward-looking statements including the risks associated with negotiating with foreign
governments as well as country risk associated with conducting international activities, competition, the ability to generate
revenue and exploit operating margins, capital resources, the use of certain technologies and materials, annual impairment
tests, labour relations, insurance, damage from weather and other disasters, operating and maintenance risks and
environmental risks, new information regarding reserves, changes in demand for and volatility of commodity prices of oil and
natural gas, failure to receive all required regulatory approvals for acquisition, the risk that the acquisition may not be
completed as contemplated or at all, legislative, regulatory and political changes, the risks discussed under "Risk Factors" in
Parex' annual information form for the year ended December 31, 2012 and other factors, many of which are beyond the control
of the Company. The risks outlined should not be construed as exhaustive. 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. These forward-looking statements are
made as of the date hereof, and the Company assumes no obligation to update or revise them to reflect new events or
circumstances, except as required by law.
Statements relating to “reserves” are by their nature forward-looking statements, as they involve the implied assessment,
based on certain estimates and assumptions that the reserves described can be profitably produced in the future.
With respect to forward-looking statements contained in this presentation, the Company has made assumptions regarding:
future exchange rates; the price of oil and natural gas; the impact of increasing competition; conditions in general economic
and financial markets; availability of equipment; availability of skilled labour; current technology; cash flow; commodity prices;
production rates; timing and amount of capital expenditures; royalty rates; effects of regulation by governmental agencies;
future operating costs; receipt of all required regulatory approvals for the acquisition; successful completion of the acquisition;
and the Company's ability to obtain financing on acceptable terms. Management has included the above summary of
assumptions and risks related to forward-looking information provided in this presentation in order to provide shareholders
with a more complete perspective on the Company's future operations and such information may not be appropriate for other
purposes.
This is not an offer to sell or a solicitation of an offer to purchase securities by Parex. Before making an investment,
investors should refer to the Offering Documents for more complete information, including investment risks, fees and expenses
and should also thoroughly and carefully review Parex' public disclosure documents available on SEDAR at www.sedar.com
with their financial, legal and tax advisors to determine whether an investment is suitable for them.
Legal Advisory How to Reach Us
Parex Resources Inc.
1900 - 250 Second Street S.W.,
Calgary, Alberta, Canada T2P 0C1
Tel: 403-265-4800
Fax: 403-265-8216
Email: investor.relations@parexresources.com
www.parexresources.com
Michael Kruchten
Vice President, Investor Relations & Corporate Planning
22Corporate Presentation May 2014
