PXT Parex Resources Inc

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT), a company focused on
Colombian oil exploration and production, is pleased to provide an operational
update.


Tigana (Non-Operated, Block LLA-34, WI 45%): The Tigana-1 exploration well was
spud on September 9, 2013. The Tigana Sur-1 exploratory well, targeting the next
closure along trend and approximately 1,200 meters from Tigana-1, was spud on
October 1, 2013. Both wells have been cased and both encountered potential oil
in the upper Mirador, lower Mirador and Guadalupe formations. 


The first interval to be tested in the Tigana-1 well, the Guadalupe formation,
was perforated over 38 feet in two separate intervals in the upper portion of
the pay zone. On December 6, 2013 an electric submersible pump (ESP) was
installed in the well to allow for continuous production testing. After 55 hours
of production, the well was producing at a rate of approximately 1,600 bopd with
a water-cut of 0.8%. A total of 3,135 barrels of oil were recovered with
field-measured oil gravity of 15 degrees API. The Tigana-1 well will continue
its short-term production test in the Guadalupe reservoir. 


The service rig has been moved to the Tigana Sur-1 well to perform a production
test in the Guadalupe Formation, after which the service rig will return to the
Tigana-1 well to test the Mirador Formation. 


Aruco (Non-Operated, Block LLA-34, WI 45%): The Aruco-1 exploration well was
spud on November 30, 2013 and is currently drilling at a depth of approximately
9,700 feet. 


La Casona (Operated, El Eden Block, WI 60%): The long-term production test
facility for the La Casona-1 well, which includes gas compression and sales,
began production from the Une Formation in early December, 2013. To date La
Casona-1 is producing at restricted rates of approximately 350 bopd and 1.5
mmscfd as facility gas compression and trucking is optimized. 


La Casona-2 appraisal well was drilled 600 meters away from La Casona-1. On
December 10, 2013 service rig operations commenced on the La Casona-2 well with
the main objective being testing of the Mirador Formation. Parex expects testing
to be completed prior to the year end 2013.


Rumi (Operated, El Eden Block WI 60%): The Rumi-1 exploration well was spud on
November 6, 2013 and has reached its target depth of 14,620 feet. The well is
being cased and Parex expects to commence completion operations prior to
year-end.


La Guira (Operated, Los Ocarros Block WI 50%): With an ESP installed, the La
Guira-1 well produced at a high water-cut until the well watered out. The La
Guira-1 is currently suspended.


Akira (Operated, Cabrestero Block, WI 100%): The Akira-6 well was directionally
drilled to a bottom-hole location approximately 800 meters northwest of the
Akira-4 well, near the Probable/Possible reserves boundary as mapped in the June
30, 2013 GLJ reserve report. Based on log results, the well encountered pay as
anticipated in the Guadalupe Formation. The drilling rig will be skidded to
drill the Akira-5 well to further delineate the down-dip extent of the existing
pool. A new surface location is also being constructed to allow further
delineation/development of the Akira pool.


Adalia (Operated, Block LLA-30, WI 100%): The Adalia-3 well was drilled
approximately 600 meters west of the Adalia-1 well to delineate the seismically
defined pool outline. Based on log results, the well encountered pay as
anticipated and was cased for testing. The drilling rig is being skidded to
drill the Adalia-2 well which will further appraise the pool approximately 1,000
meters east of the Adalia-1 well.


Parex believes that the full development of the Adalia pool will require a
waterflood, and our 2014 capital plans include water injection facilities. Parex
expects to produce the Adalia wells under primary production until regulatory
approval for waterflood is received in 2014.


Maragogi Norte-1 (Operated, Block LLA-16 WI 100%): Upon further review of well
data, Parex has initiated abandonment operations, foregoing testing.


Fourth Quarter Production: Average production from October 1-December 6 was
approximately 17,000 bopd, an increase of 33% over the fourth quarter of 2012
and in excess of our Q4 guidance of 16,800 bopd. We expect December average
production to exceed 17,000 bopd with the addition of Tigana and La Casona
volumes.


Drilling Schedule

Parex currently has a catalyst rich program entering the dry season in the
Llanos Basin. A summary of the current drilling/testing program plus the
follow-up locations is provided below:




#     Prospect              Block                 Timing / Status           
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1     Rumi-1                El Eden               Preparing to Test         
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2     Adalia-3              LLA-30                Preparing to Test         
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3     Adalia-2              LLA-30                Drilling                  
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4     La Casona-2           El Eden               Preparing to Test         
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5     Akira-6               Cabrestero            Preparing to Test         
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6     Akira-5               Cabrestero            Spud following Akira-6    
----------------------------------------------------------------------------
7     Tigana Sur-1          LLA-34                Preparing to Test         
----------------------------------------------------------------------------
8     Aruco-1               LLA-34                Drilling                  
----------------------------------------------------------------------------
9     Tua-6                 LLA-34                Spud following Aruco      
----------------------------------------------------------------------------
10    Celtis-1              LLA-40                Spud following Adalia-2   
----------------------------------------------------------------------------



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. 


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" 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'
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, expected impairment of exploration and evaluation assets
to be recognized in Parex' third quarter financial statements; the focus of the
Company's operations in Colombia; financial and business prospects; and
activities and capital expenditures to be undertaken in various areas. 


Additional information on these and other factors that could effect 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.sedar.com). 


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: current commodity prices
and royalty regimes; availability of skilled labour; timing and amount of
capital expenditures; future exchange rates; the price of oil; the impact of
increasing competition; conditions in general economic and financial markets;
availability of drilling and related equipment; effects of regulation by
governmental agencies; royalty rates, future operating costs; that the Company
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 the Company's conduct and results of operations
will be consistent with its expectations; that the Company will have the ability
to develop the Company's oil properties in the manner currently contemplated;
that the estimates of the Company's reserves volumes and the assumptions related
thereto (including commodity prices and development costs) are accurate in all
material respects; 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. 


Any references in this press release to test production rates are useful in
confirming the presence of hydrocarbons, however, such rates are not
determinative of the rates at which such wells will commence production and
decline thereafter. These test results are not necessarily indicative of
long-term performance or ultimate recovery. Readers are cautioned not to place
reliance on such rates in calculating the aggregate production for the Company.


The TSX has not received and does not accept responsibility for the adequacy or
accuracy of this news release. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Parex Resources Inc.
Mike Kruchten
Vice President, Corporate Planning & Investor Relations
(403) 517-1733
Investor.relations@parexresources.com

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