Parex Resources Announces 50% Increase in 2012 Reserves and Provides Operational Update

NOT FOR DISTRIBUTION OR FOR DISSEMINATION IN THE UNITED STATES

Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT), a company focused on
oil exploration and production in Colombia and Trinidad, announces the results
of its 2012 year-end independent crude oil reserves evaluation and provides an
operations update. The financial and operational information contained below is
based on the Company's unaudited expected results for the year ended December
31, 2012.


Highlights:



--  Proved reserve growth of 103 percent, increasing from 4.9 million
    barrels of light oil to 10.1 million barrels of light oil (net company
    working interest); 
--  Proved plus probable reserve growth of 50 percent, increasing from 10.7
    million barrels of light oil to 16.1 million barrels of light oil (net
    company working interest); 
--  Replaced 229 percent of production on a total proved plus probable
    basis; 
--  Proved plus probable reserve growth per share of 29 percent on a debt
    adjusted basic share basis primarily funded from surplus working capital
    carried over from 2011; 
--  Proved plus probable net present value of $576 million before tax
    discounted at 10 percent compared to $454 million at 2011; 
--  Finding and developing and acquisition ("FD&A") costs (including changes
    in future development costs ("FDC")) of $39.64 per barrel for 2012
    generating a recycle ratio of 1.7. Excluding Trinidad capital
    expenditures, 2012 FD&A was $35.37 per barrel and generated a recycle
    ratio of 1.9; and 
--  Production for the month of January 2013 was approximately 14,000
    barrels of oil per day ("bopd") compared to 13,500 bopd in the previous
    month. 



2012 Year End Reserves

The following tables summarize information contained in the independent reserves
report prepared by GLJ Petroleum Consultants Ltd. ("GLJ") effective December 31,
2012 ("GLJ Report") with comparatives to the year ended December 31, 2011. The
GLJ Report was prepared in accordance with definitions, standards and procedures
contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and
National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities
("NI 51-101"). Additional reserve information as required under NI 51-101 will
be included in the Company's Annual Information Form which will be filed on
SEDAR by March 30, 2013. 


The recovery and reserve estimates of crude oil reserves provided in this news
release are estimates only, and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil reserves may eventually prove to be
greater than, or less than, the estimates provided herein. All reserves
presented are based on GLJ's forecast pricing effective December 31, 2012.
Consistent with the Company's reporting currency, all amounts are in United
States dollars unless otherwise noted.


Discussion of Reserves

Parex' crude oil reserves are located in Colombia's Llanos basin. Reserve
additions in 2012, as evaluated by GLJ were primarily generated from a
successful 2012 oil exploration program that increased the number of producing
fields from 2 in 2011 to 11 in 2012. The GLJ report did not include any reserves
associated with natural gas or natural gas liquids.


On a debt adjusted basic share basis, the proved reserves increased by 75
percent and proved plus probable reserves increased by 29 percent at December
31, 2012.


The net present value before tax of proved plus probable reserves increased by
27 percent and on a debt adjusted per share basis increased by 9 percent at
December 31, 2012 compared to the prior year. 


The quality of the light oil reserves and a favourable Colombian fiscal regime
generate a net present value before tax of $35.76 per barrel for proved plus
probable reserves as at December 31, 2012 compared to $ 42.38 per barrel for the
prior period. The decrease in the net present value per barrel was primarily a
result of increased operating and transportation costs per barrel being
reflected in the 2012 evaluation. A 10 percent discount rate was used for the
net present value calculations. 


2012 Year End Reserves Volumes 



                    December 31,  December 31,      Increase  Debt Adjusted 
Reserves                    2011          2012     year-over      Per Share 
 Category(1)            (MBbl)(2)        (MBbl)         year       Growth(3)
----------------------------------------------------------------------------
Proved                     4,953        10,063           103%            75%
Proved plus                                                                 
 Probable                 10,712        16,100            50%            29%
Proved plus                                                                 
 Probable plus                                                              
 Possible                 17,622        23,131            31%            13%
----------------------------------------------------------------------------
(1) Reserves are 100% light crude oil, therefore disclosure of heavy crude  
    oil, liquids and natural gas volumes has not been provided. Reserves are
    before royalties.                                                       
(2) Mbbl is defined a thousand barrels of oil.                              
(3) Calculated using: basic shares 108.5 million, December 31, 2012 share   
    price of $5.80, convertible debenture face value Cdn$85 million, and    
    unaudited estimated net working capital as at December 31, 2012.        



Five Year Crude Oil Price Forecast - GLJ Report



                                2013      2014      2015      2016      2017
----------------------------------------------------------------------------
ICE Brent ($/bbl)            $105.00   $102.50   $102.50   $102.50   $100.00
----------------------------------------------------------------------------



2012 Year-End Reserves Net Present Value Before Tax Summary 



                                         December       December            
                                         31, 2011       31, 2012   Increase 
                                          ($000s)        ($000s)  year-over 
Reserves Category                        (1)(2)(3)      (1)(2)(3)      year 
----------------------------------------------------------------------------
Proved                                $   249,933    $   364,463         46%
Proved plus Probable                  $   453,990    $   575,756         27%
Proved plus Probable plus Possible    $   758,856    $   808,475          7%
----------------------------------------------------------------------------
(1) The forecast prices used in the calculation of the present value of     
    future net revenue are based on the GLJ December 31, 2012 price forecast
    and will be included in the Company's Annual Information Form. Net      
    revenue assumptions are consistent with unaudited 2012 realizations and 
    Parex' 2013 Budget.                                                     
(2) Net present values are discounted at 10 percent.                        
(3) Includes proved plus probable future development capital (FDC) of $124.7
    million; 2011 FDC was $85.1 million.                                    



2012 Year-End Reserves Reconciliation Company Gross



----------------------------------------------------------------------------
                                                          Total Proved plus 
Oil mbbls                                 Total Proved             Probable 
----------------------------------------------------------------------------
December 31, 2011                                4,953               10,712 
Technical Revisions(1)                              56               (1,363)
Discoveries & Extensions(2)                      9,229                8,631 
Acquisition                                          0                2,295 
Production                                      (4,175)              (4,175)
----------------------------------------------------------------------------
December 31, 2012(3)                            10,063               16,100 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Proved plus probable negative reserve revisions are primarily associated
    with the evaluations of the Las Maracas (Mirador Formation), Sulawesi   
    and Kona fields.                                                        
(2) Proved plus probable reserve additions are primarily associated with the
    evaluations of the Las Maracas (Gacheta Formation), Tua and La Casona   
    discoveries.                                                            
(3) Subject to final reconciliation adjustments.                            
                                                                            
                                                                            
Proved plus Probable FD&A - Company Gross(1)(2)                             
----------------------------------------------------------------------------
                                                    2012              3 Year
----------------------------------------------------------------------------
$ ('000) (Unaudited)                       Including FDC       Including FDC
                                         Proved+Probable     Proved+Probable
Capital Expenditure - Colombia         $         226,910   $         388,122
Capital Expenditure - Trinidad         $          40,822   $          72,018
Capital Expenditure - change in FDC    $             577   $          61,463
                                    ----------------------------------------
Total Capital Expenditures(3)          $         268,309   $         521,603
Net Acquisitions                       $          71,774   $         324,761
Net Acquisitions - Change in FDC       $          39,014   $          63,234
                                    ----------------------------------------
Total Net Acquisitions(4)              $         110,788   $         387,995
                                                                            
----------------------------------------------------------------------------
Total Capital including Acquisitions   $         379,097   $         909,598
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Reserve Additions                                  7,268              14,961
Net Acquisition Reserve Additions                  2,295               7,294
----------------------------------------------------------------------------
Reserve Additions including Net                                             
 Acquisitions                                      9,563              22,255
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Company Metrics                                                             
                                                                            
F&D Costs                              $       36.92/bbl   $       34.86/bbl
FD&A Costs                             $       39.64/bbl   $       40.87/bbl
----------------------------------------------------------------------------
Estimated Q4 2012 Operating Netback    $       68.80/bbl   $       68.80/bbl
                                                                            
----------------------------------------------------------------------------
Recycle Ratio - F&D                                 1.9x                2.0x
Recycle Ratio - FD&A                                1.7x                1.7x
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Colombia Metrics (Excluding                                                 
 Trinidad)                                                                  
F&D Costs                             $        31.30/bbl  $        30.05/bbl
FD&A Costs                            $        35.37/bbl  $        37.64/bbl
Recycle Ratio - F&D                                 2.2x                2.3x
Recycle Ratio - FD&A                                1.9x                1.8x
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Calculated using unaudited estimated capital expenditures and operating 
    netback as at December 31, 2012.                                        
(2) Recycle ratio is calculated as operating netback divided by FD&A costs  
    (proved plus probable). Operating netback is calculated as revenue minus
    royalties, production and operating expenses and transportation         
    expenses.                                                               
(3) Capital expenditures include the costs of exploration land and minor    
    expenditures in Canada.                                                 
(4) Acquisitions and associated reserves and FDC are all related to         
    Colombia.                                                               



Operations Update



--  January 2013 production averaged approximately 14,000 bopd; 
--  The Las Maracas-7 well was drilled as a southern delineation well and is
    currently producing at a restricted rate of approximately 950 bopd from
    the basal Gacheta Formation. We expect the Las Maracas field (Parex
    operated; 50 percent working interest) to produce at a rate of
    approximately 8,500 bopd (gross) until the oil treatment plant is
    commissioned in the second quarter of 2013; 
--  The Max-2 development well has been cased and completion activities are
    commencing to evaluate the Mirador and Guadalupe formations; 
--  Kona-Sur and Kona-16 wells were drilled from the new Kona South pad.
    Kona-Sur was drilled as a southern delineation well for the Gacheta
    Formation to a target depth of 13,200 feet. Kona-16 was drilled as a
    delineation well for both the Mirador and C7 and was drilled to a total
    depth of 12,000 feet. Each well tested non-commercial amounts of oil and
    will likely be used for future water disposal. Both wells were not
    included in the GLJ Report; 
--  Maragogi Norte-1 on Block LLA-16 has been drilled to a target depth of
    14,000 feet and has been cased with testing to be completed at a future
    date by a service rig. Parex also expects to mobilize a drilling rig to
    drill additional exploration prospects in LLA-16 during the current dry
    season; 
--  On Block LLA-30 the Viviana Este-1 prospect is expected to be drilled to
    a target depth of 5,000 feet and spud during February 2013. Adalia
    Norte-1 exploration well is the next well expected to be drilled on LLA-
    30; 
--  On Block LLA-32 a rig is mobilizing to the Bandola-1 exploration well
    drilling to the Gacheta Formation at a depth of 11,000 feet; and 
--  In Trinidad a 2-D seismic program has commenced on the Central Range
    Block ("CRB"), with immediate focus on firming up deep exploration
    prospects on the east of the block that can be drilled off existing
    roads. 



First Half of 2013 Exploration Drilling Schedule

A summary of the near-term exploration drilling and testing program is provided
below:




----------------------------------------------------------------------------
#             Prospect             Block                Timing              
----------------------------------------------------------------------------
1             La Casona            El Eden              Testing - workover  
2             Maragogi Norte       LLA-16               Cased - to be tested
3             Caturra              LLA-16               Spud Q2 2013        
4             Chiriguaro Este      El Eden              Spud Q2 2013        
5             Viviana Este         LLA-30               Mobilizing rig      
6             Adalia Norte         LLA-30               Spud Q1 2013        
7             Adalia               LLA-30               Spud Q1 2013        
8             Bandola              LLA-32               Mobilizing rig      
9             Akira-2              Cabrestero           Spud Q2 2013        
10            Domo                 Cabrestero           Spud Q2 2013        
11            Cumbre Sur           LLA-20               Spud Q2 2013        
12            Las Maracas-8        Los Ocarros          Spud Q2 2013        
13            Max-2                LLA-34               Testing             
14            Tua-4                LLA-34               Spud Q2 2013        
----------------------------------------------------------------------------



Corporate Overview 

Parex, through its direct and indirect subsidiaries, is engaged in oil and
natural gas exploration, development and production in South America and the
Caribbean region. Parex is conducting exploration activities on its 1,349,000
gross acre holdings primarily in the Llanos Basin of Colombia and 219,000 gross
acre holdings onshore Trinidad. Parex is headquartered in Calgary, Canada.


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. 


Reserve Advisory

"Proved" reserves are those reserves that can be estimated with a high degree of
certainty to be recoverable. It is likely that the actual remaining quantities
recovered will exceed the estimated proved reserves. 


"Probable" reserves are those additional reserves that are less certain to be
recovered than proved reserves. It is equally likely that the actual remaining
quantities recovered will be greater or less than the sum of the estimated
proved plus probable reserves.


"Possible" reserves are those additional reserves that are less certain to be
recovered than probable reserves. There is a 10 percent probability that the
quantities actually recovered will equal or exceed the sum of proved plus
probable plus possible reserves. It is unlikely that the actual remaining
quantities recovered will exceed the sum of the estimated proved plus probable
plus possible reserves.


All evaluations and reviews of future net cash flow are stated prior to any
provision for interest costs or general and administrative costs and after the
deduction of estimated future capital expenditures for wells to which reserves
have been assigned. It should not be assumed that the estimated future net cash
flow shown below is representative of the fair market value of the Company's
properties. There is no assurance that such price and cost assumptions will be
attained, and variances could be material. The recovery and reserve estimates of
crude oil reserves provided are estimates only, and there is no guarantee that
the estimated reserves will be recovered. Actual crude oil reserves may be
greater than or less than the estimates provided.


Unaudited Financial Information 

Certain financial and operating results included in this news release such as
finding, development and acquisition costs, recycle ratio, net debt, capital
expenditures, production information and operating costs are based on unaudited
estimated results. These estimated results are subject to change upon completion
of the audited financial statements for the year ended December 31, 2012, and
changes could be material. Parex anticipates filing its audited financial
statements and related management's discussion and analysis for the year ended
December 31, 2012 on SEDAR on or before March 31, 2013.


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, statements with respect to the performance
characteristics of the Company's oil properties; supply and demand for oil;
financial and business prospects and financial outlook; results of drilling and
testing, results of operations; drilling plans; activities to be undertaken in
various areas; capital plans in Colombia and exit rate production; plans to
acquire and process 3-D seismic; timing of drilling and completion; and planned
capital expenditures and the timing thereof. In addition, statements relating to
"reserves" or "resources" are by their nature forward-looking statements, as
they involve the implied assessment, based on certain estimates and assumptions
that the resources and reserves described can be profitably produced in the
future. The recovery and reserve estimates of Parex' reserves provided herein
are estimates only and there is no guarantee that the estimated reserves will be
recovered. 


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, Colombia and Trinidad & Tobago; 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, Colombia and Trinidad & Tobago; 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; the risks that any estimate of potential net oil pay is not based upon
an estimate prepared or audited by an independent reserves evaluator; that there
is no certainty that any portion of the hydrocarbon resources will be
discovered, or if discovered that it will be commercially viable to produce any
portion thereof; 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; the impact of
increasing competition; conditions in general economic and financial markets;
availability of drilling and related equipment; effects of regulation by
governmental agencies; receipt of all required approvals for the Acquisition;
royalty rates, future operating costs, 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. 


FOR FURTHER INFORMATION PLEASE CONTACT: 
Parex Resources Inc.
Michael Kruchten
Manager, Investor Relations
[phone]
[e-mail]


Parex Resources Inc.
Kenneth G. Pinsky
Vice President, Finance and Chief Financial Officer
[phone]