Parex Resources Announces 2014 Guidance Highlighted By Cash Flow Funded 15% Production Growth

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 announce its 2014
Guidance. All amounts herein are in United States dollars unless otherwise
stated.


2014 Guidance Summary

Building on our 2013 operational and exploration success, Parex plans a self
funding 2014 capital investment program of approximately $250 million focused on
growing Colombia production, reserves and identifying future resource potential.


Key highlights:



--  2014 average production range of 17,500-18,500 bopd as compared to the
    2013 average of approximately 15,700 bopd and the 2012 average of 11,407
    bopd; 
--  Brent oil pricing that generates high operating netback production
    provides for a fully funded from cash flow capital program and year over
    year mid- point production growth of 15 percent; 
--  Low risk development and appraisal program of 15 wells (9.6 net) that
    utilizes approximately 30%-40% of annual cash flow and is intended to
    maintain a production base of approximately 16,000 bopd; 
--  Strong exploration program targeting 19 prospects (11.5 net) plus the
    potential to drill another 8 (4.6 net) follow-up appraisal wells in
    2014; 
--  Multiple high impact exploration prospects in proven traditional plays
    over 11 Colombian blocks, of which 6 blocks have not yet been tested by
    Parex; and 
--  Exposure to new play concepts in Colombia - Proof of Concepts - such as
    cold heavy oil production, tight sands and stratigraphic traps, which
    are targeting potentially large multi-well resource trends.



2014 Capital Budget

A summary of the 2014 capital plan is provided below:



                                   # 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
----------------------------------------------------------------------------



Our base capital budget is $250 million, an increase of 10% compared to an
expected full year 2013 range of $225-$235 million. The capital program is
weighted towards the first half of the year as in prior years. In addition, if
exploration discoveries or new play concepts merit appraisal drilling and
production facilities, we may increase the 2014 capital budget by up to $30
million as contingent capital.


The development/appraisal drilling will be focused on the Cabrestero, LLA-34 and
LLA-30 blocks.


2014 Netback Assumptions

We have modelled our 2014 capital program of $250 million to be fully funded
from cash flow at a Brent oil price of $100 per barrel and assuming historical
differential and transportation costs on a per barrel basis.


Parex expects to begin 2014 with a working capital surplus (net of bank debt)
and therefore an available credit facility of approximately $100 million.


Dependent on the on-stream timing of production from successful exploration
wells, operational performance of non-operated producing fields and changes to
pipeline capacity, we expect production and transportation expenses to be
approximately $27-$30 per barrel.


The corporate royalty rate as a percentage of sales is expected to increase to
15% for the full year but would likely be higher in the first half of the year
and reducing in the second half. Royalty rates will vary according to the
production weighting between low and high royalty rate fields.


On a per barrel basis, we expect other netback components and corporate tax
expense to be in-line with the September 30, 2013 financial results.


Parex has implemented a commodity risk management program weighted to the first
half of 2014 based on Brent oil pricing. Please refer to the September 30, 2013
Management's Discussion and Analysis for a summary of current 2014 derivative
contracts.


2014 Drilling Schedule

Our 2014 exploration drilling schedule provides for a catalyst rich program with
17 of a possible 22 exploration prospects expected to be drilled in the first
half of 2014. During the Colombian dry season (January-April) we expect to
employ 3 operated and 2 non-operated drilling rigs.




                                               H1'14       H2'14       Total
----------------------------------------------------------------------------
Development/Appraisal                              7           8          15
----------------------------------------------------------------------------
Exploration                                       15           4          19
----------------------------------------------------------------------------
New Play Concepts                                  2           1           3
----------------------------------------------------------------------------
Total Wells (gross)                               24          13          37
----------------------------------------------------------------------------



Parex also has the opportunity to drill another 8-10 appraisal wells in 2014 as
follow- up to exploration success.


The final drilling schedule will be subject to partner approvals and regulatory
approvals.


To view Parex' most recent corporate presentation
http://parexresources.com/sites/default/files/ParexResourcesGuidance.pdf


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, Parex' planned 2014 capital investment program,
including the focus and amount thereof, the anticipated sources of funding, and
the potential for such capital investment program to be increased; anticipated
average production for 2013 and 2014 and year over year mid-point production
growth; the Company's drilling plans, including the anticipated number and type
of wells, location of development/appraisal drilling, cash flow utilization, and
production base; targeted number of drilling prospects, exploration wells,
development/appraisal wells and new play concepts in 2014; Parex' exposure to
new play concepts in Colombia and the terms thereof; anticipated capital
expenditures in 2014 and the focus thereof; the Company's expected working
capital and available credit facility at the beginning of 2014; anticipated
production and transportation expenses; expected changes to the Company's
corporate royalty rate; and expectations regarding netback components and
corporate tax expense.


These forward-looking statements are subject to numerous risks and
uncertainties, including but not limited to, the impact of general economic
conditions in Canada, Colombia and Trinidad & Tobago; 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; competition; lack of availability of qualified
personnel; the results of exploration and development drilling and related
activities; risks related to the ability of partners to fund capital work
programs and other matters requiring partner approval; imprecision in reserve
and resource estimates; the production and growth potential of Parex' assets;
obtaining required approvals of regulatory authorities and partners; 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; ability to access sufficient capital from internal
and external sources; risk that the Company will not 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; the risks
discussed under "Risk Factors" in the Company's Annual Information Form; 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 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; pipeline
capacity; timing of production from successful exploration wells; operational
performance on non-operated producing fields; 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; that the Company will receive all required partner and regulatory
approvals; 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.


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
[phone]
[e-mail]
www.parexresources.com