Parex resources corporate_presentation january 2015 london

January 2015
Corporate Presentation
PAREXRESOURCES.COM | TSX:PXT
Leveraging
Portfolio
Flexibility

Financial
Q4 2014 Production ~26,580 bopd
2014 Production ~22,515 bopd
Q3 Funds Flow (Sales 24,490 bopd) US $89 MM
Reserves 2P (June 30, 2014) 58 MMboe(1)
 2P Reserve Life Index (RLI) of 6.7 years
NPV 10 AT $1,326 MM
Capital Structure
Market capitalization at $7/share ~Cdn$945 MM
Net Bank Surplus(2)
(Credit Facility $175 MM) US$ 3.0 MM
Common shares outstanding
(TSX listed, added to S&P/TSX Composite Index in June 2014)
Basic 134.7 MM
Fully Diluted 143.9 FD(3)
MM
Snapshot
(1) Parex net working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants Ltd. effective June 30, 2014.
(2) Defined as bank debt minus working capital
(3) Fully diluted shares does not include out of the money options based on a share price of $10.50
22015: Leveraging Portfolio Flexibility

Colombia Focused
3
VIM-1
VMM-9
VMM-11
Morpho
Capachos
LLA-10
LLA-40
LLA-57
LLA-24
LLA-30
LLA-29
LLA-16 LLA
-17
Los
Ocarros
LLA-34
LLA-32
LLA-26
El Eden
El Porton
Cerrero
Cabrestero
LLA-20
Santa MartaBarranquilla
Cartagena
Covenas
Medellin
BOGOTA
VENEZUELA
COLOMBIA
OBC
Significant land base
 2.75 mm gross acres
 Working interest in 23 blocks
Diversified production base
Experienced operator
 ~120 wells drilled
58 mmbbls in 2P Reserves
 78 2P locations
Cebucan
/BLOCK
*Certain lands are subject to farm-in-agreement earnings terms and/or regulatory approval.

($0.50)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
$3.00
($100)
$0
$100
$200
$300
$400
2009 2010 2011 2012 2013 2014E
FundsFlow($/share)
FundsFlow($MM)
Funds FlowGrowthDebt Adjusted
Funds Flow
LHS
Funds Flow per share
RHS
Track Record of Consistent Growth
4
$0.00
$4.00
$8.00
$12.00
$16.00
$0
$400
$800
$1,200
$1,600
$2,000
2009 2010 2011 2012 2013 June 2014
3PNPV10ATpershare
3PNPV10AT($MM)
NPV Growth Debt Adjusted
3P NPV10AT (USD)-LHS
3P NPV10AT per share(USD)-RHS
3P NPV10AT per share(CAD)-RHS
0.00
0.20
0.40
0.60
0.80
0
20
40
60
80
100
2009 2010 2011 2012 2013 June 2014
Reservespershare
Reserves(MMboe)
Reserve Growth Debt Adjusted
Possible - LHS
2P - LHS
3PReserve per share - RHS
2PReserve per share - RHS
Q4
2014E
0
40
80
120
160
200
0
5,000
10,000
15,000
20,000
25,000
2009 2010 2011 2012 2013 2014E
Productionpershare
Production(bopd)
Production Growth Debt Adjusted
Production (bopd)
LHS
Production per share
RHS

2015 Guidance: Self Funded 18% Growth
5
Brent Oil Price Scenario $50-$60 per barrel
Maintenance Capital $70-$75
Exploration Commitments $75-$80
2015 Base Capital $145-$155
Discretionary Growth Capital Scenario
Growth Capital: Exploration Follow-Up
Discretionary Exploration - PXT Operated
$25
$50
Seismic - Q4 Option $20
Optional Positioning Capital Up to $95
(USD millions)
Brent Price $50/bbl $55/bbl $60/bbl
Cash Netback $13-$15/bbl $15-$17/bbl $18-$20/bbl
Ability to change 2015 capital expenditures to match cash flow.
Overall, we expect the 2015 cash netbacks per barrel of:

Grow & Diversify Production
Fourth Quarter production averaged 26,580 bopd
0
3
6
9
12
15
18
21
24
27
Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
est.
Bopd(000)byblock
2010 2011 2012 2013 2014
LLA-16 LLA-20 Los Ocarros Cabrestero LLA-32 LLA-34 LLA-30 Other

Proved + Probable
+ Possible
Proved + Probable Proved
2P Reserves Life
Index (1) (2)
After Tax PV10(3)
(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
30-Jun-13 36.4 23.7 14.1 4.2x $614
31-Dec-13 49.9 32.0 17.4 5.1x $832
30-Jun-14 90.6 57.6 31.9 6.7x $1,326
Track record of progressing reserves from 3P to cash flow
Focus on increasing reserve life index (RLI) & sustainability
Building A Sustainable Business
(1) Year-end RLI calculated using 2P year-end reserves divided by Q4 production annualized
(2) Mid-year RLI calculated using 2P year-end reserves divided by annualized Q2 production at June 30, 2013 and estimated second quarter (Q2) exit rate production of 23,500 bopd annualized at June 30, 2014.
(3) Value based on GLJ ‘s Ice Brent Price Forecast : US $107.50 in 2015 , US $105.00 in 2016 and US $102.50 in 2017
*Reserves are independently evaluated by GLJ Petroleum Consultants Ltd.

Median Llanos
100 acres
Kona
300 acres
Akira / Tigana
500 +3000 acres
Oil Water Sandstone Shale
Las Maracas
300 acres
Bottom water drive Edge water drive Edge water drive
Progressively Larger Discoveries
8
2. Drive
1. Size

Llanos Plains Structural Pool Sizes (IHS)
Pmean = 3.9 MMBO
P50 = 2.0 MMBO
Good fit to a logarithmic distribution – Mature distribution
40% of discoveries made since 2010
Conforms to Parex Llanos initial assumption
Parex discoveries include Kona, Las Maracas
Parex Structural Discovery (Avg 2P= 2.7 MMBO)
*Reserves are independently evaluated by GLJ Petroleum Consultants Ltd.
10
2PReservesMMBO
50
60
20
30
40

2008*
1989*
2011
2010
2013
2012
2007*
2010
10
* Drilled on structural anomalies but now acknowledged to have a significant stratigraphic elements
Llanos Stratigraphic Pools:
Significant Gaps in the 20-90 MMBO Range
*Parex Reserves are independently evaluated by GLJ Petroleum Consultants Ltd.
Tigana Guadalupe & Mirador
likely both fit into this gap
20
60
80
100
40
120
140
160
2PReservesMMBO

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-30, Akira, Tigana
Cabrestero, LLA-34,
LLA-10
Magdalena Basin, Llanos Deep, Capachos

Cabrestero (100% WI, Operator)
Akira – development drilling; swing producer
LLA 34 (55% WI, Non-operated)
Large discoveries at Tua & Tigana
Significant development focus for 2015+
LLA-32 (70% WI, Operator)
Kananaskis, Carmentea & Calona discoveries
Follow-up appraisal drilling and exploration
Southern Llanos: New Play Trends
Explore core position, appraise & develop discoveries, and leverage Parex’ costs and exploration know-how
2013 3D SeismicDiscoveries 2010/11 Seismic
12
Cabrestero
LLA-32
Santiago
Max
Tarotaro
LLA-34
Tigana Sur
Tua
Akira
Balay
El Palmar
Los Trompillos
Maniceño -Bandola
Kitaro
Tigana
Kananaskis
Carmentea
Drillable exploration prospects on new 3D seismic for 2015

Southern Llanos: 2015 Focus
2015: Leveraging Portfolio Flexibility 13
Chenchena
Chenchena Sur
Chiricoca
Tilo
Jacana Mochuleo
PXT-B
MaxNorte
TIGANA TAROTARO
ARUCO
TUA
AKIRA
Aruco Norte
Prospects
2014 Drill
KANANASKIS

Capachos (50% WI, Operator)1
Development & exploration opportunities
ANH royalty contract
Large structure, light oil, 2 mmbbls produced from 2 wells
Leverages our strengths:
low cost drilling
strong operator
working with communities
Capachos Farm-in: Ecopetrol Partnership
14
Capachos Sur-1
Capachos-1
Prospect/Extension
Capachos
LLA-16
LLA-40
LLA-17
LLA-57
LLA-10
1) Working interests are subject to regulatory approval.

Middle Magdalena Basin
VMM-11
Morpho
VMM-9
40 km
VMM-9 & VMM-11 (100% WI, Operator)
Testing of new play concepts:
Cold heavy oil production (CHOPS)
Conventional structure/sub-thrust
La Luna unconventional play
Builds on management’s success with Petro
Andina in Argentina’s Neuquén Basin
Morpho (100% WI, Operator)
Over 2000’ of gross sands with potential pay in two
zones
Morpho-1 well produced ~80 bopd of 38o API clean
oil without decline for greater than one year
Next: 2D seismic + new well & optimized frac
program
Middle Magdalena Basin: New Play Concepts
New Play Concepts: applying proven technology in Colombia
Discoveries
15
Nare
Palagua
Cocorna
PP Velasquez

Middle Magdalena New Play Concepts
Play Types
1. Tertiary Structure
(CHOPS/Hztl Drills)
2. Foothills/Subthrust
(Light Oil)
3. Eocene Subcrop Plays
(CHOPS/Hztl Drills)
4. Unconventional La Luna
(Hztl Multi-Fracs)
1. Teriatry
Structure
Fairway
(CHOPS)
2. Foothills/Subthrust
Plays
Multiple play types, in close
proximity, on the same 3D
seismic volumes
16
OPON
3. Eocene Subcrop
Edge
4. La Luna
Resource Play

VMM 11
Velasquez/Palagua Field
Cum Production: 199 MMboe
Teca-Nare Field
Cum Production: 115
MMboe
Lead 2
Lead 1
Lead 3
Glauca Prospect
2014 3D
Acquisition
Producing Field
Parex Block
Prospect/Lead
Faults
VMM 11 Leads & Prospects

Operating Netback: Colombia Premium
$63
$71 $67 $71
$82
$73 $71 $69 $67
$58 $64 $61 $62 $62
$53
$26
$22
$22
$23
$26
$26 $29 $29 $27
$28
$29 $29 $28 $28
$30
$7
$12
$8
$8
$9
$8 $8 $8 $15
$14
$14
$12 $14 $15
$11
0
20
40
60
80
100
120
140
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
RealizedPrice(US$/bbl)
Price
Royalties
Costs
Parex’ Take
2011 2012 2013 2014
Brent Price
US $/BBL
RoyaltiesOpex &
Transportation
Operating
Netback

Proven Management’s track record
Exposure to Brent Oil Pricing LATAM exposure
Self-funded growth
Parex’ Value Proposition

Appendix – Block Summary
1) Working interests are subject to regulatory approval.
2) Farm-in agreement for 50% participating interest in the block, excluding Curiara Area, subsequent to fulfilling certain obligations.
3) Morpho is subject to a 4% Net Profit Interest.
4) Farm-out agreement awarding 51% participating interest subsequent to fulfilling certain obligations.
Block
Operated/
Non-Operated
Working Interest Partners Gross Acres Basin
LLA-10 Operated 50% Petro America 189,544 Llanos
LLA-16 Operated 100% N/A 157,611 Llanos
LLA-17 Operated 63% Geopark 108,726 Llanos
LLA-32 Operated 70% Apco & Geopark 100,325 Llanos
LLA-34 Non-Operated 55% Geopark 82,286 Llanos
LLA-40 Operated 50% Apco 163,090 Llanos
Cabrestero Operated 100% N/A 29,562 Llanos
Capachos(1) Operated 50% Ecopetrol 64,175 Llanos
Cebucan Operated 100% N/A 109,150 Llanos
Cerrero(1) Operated 65% Perenco 108,973 Llanos
El Eden Operated 60% Petro America 109,249 Llanos
El Porton(2) Operated 50% Petro America 109,476 Llanos
Los Ocarros Operated 50% Petro America 110,436 Llanos
VIM-1 Operated 100% N/A 223,651 Lower Magdalena
Morpho(3) Operated 100% N/A 51,398 Middle Magdalena
VMM-9 Operated 100% N/A 152,314 Middle Magdalena
VMM-11 Operated 100% N/A 116,826 Middle Magdalena
Moruga(4) - (Trinidad) Operated 32.8%
Caribbean Rex &
Touchstone
7,443 -
20

2014 2013 2012
Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1
OPERATING
Production (thousands of bopd) 25.2 19.9 18.4 15.9 17.3 16.2 15.5 14.4 11.4 12.7 10.9 10.4 11.7
Average realized prices, prior to hedging 94 105 103 104 102 106 99 110 109 106 108 108 117
Brent Price ($/bbl) 104 110 108 109 109 110 103 112 112 110 110 108 119
Operating Netback ($/bbl) 53 62 61 63 61 64 58 67 73 69 71 73 82
Cash Netback ($/bbl) 39 46 45 47 48 46 45 50 56 47 42 58 75
FINANCIAL (millions of US dollars, except per share amounts)
Sales of crude oil 229 183 180 637 167 157 148 165 524 150 131 113 130
Funds flow from operations 89 77 77 270 76 68 66 60 242 54 42 61 84
Per share – basic 0.70 0.70 0.70 2.49 0.70 0.63 0.61 0.56 2.23 0.50 0.39 0.57 0.77
Net income (loss) 17 11 10 13 22 (28) 8 11 40 (16) 8 21 27
Per share – basic 0.13 0.10 0.09 0.20 0.20 (0.26) 0.07 0.10 0.37 (0.15) 0.07 0.19 0.25
EBITDA 114 84 97 325 92 82 80 72 258 46 62 68 83
Cash and cash equivalents 34 63 40 57 57 26 45 27 32 32 27 51 121
Working Capital 45 31 37 24 24 19 9 17 (13) (13) (9) (0.6) 116
Net Debt (Surplus) (1) (3) 110 29 70 70 85 104 88 107 107 94 86 (31)
Capital Expenditures 57 95 62 234 59 50 78 47 268 65 51 93 59
Weighed average shares outstanding 126 111 109 108 108 108 108 109 108 108 108 108 108
Weighed average shares outstanding, diluted 130 122 111 124 124 108 130 129 126 110 109 117 118
TRADING STATISTICS (CAD)
(based on intra-day trading)
High 15.49 13.25 9.50 6.8 6.80 6.30 4.89 6.50 8.67 6.03 5.18 7.15 8.67
Low 11.98 9.33 6.59 4.05 5.60 4.10 4.05 4.39 4.07 4.27 3.85 4.29 6.49
Close (end of period) 12.45 12.55 9.50 6.58 6.58 5.83 4.12 4.63 5.80 5.80 4.83 4.72 7.04
Average daily volume (thousands) 602 556 360 216 258 193 203 210 236 235 148 335 264
Appendix – Summary of Quarterly Results
(Unaudited)
(1) Defined as Bank Debt + Convertible Denture Face Value ( C$ 85 million) - Working Capital
Bank credit facility currently has a borrowing base of US $175 million
Debentures were converted at C$10.15 for an aggregated of 8,339,991 shares during August and September

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 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, 2013 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.
2700 Eighth Avenue Place, West Tower
585 8th Av SW
Calgary AB T2P 1G1
Canada
Tel: 403-265-4800
Fax: 403-265-8216
Email: investor.relations@parexresources.com
www.parexresources.com
Michael Kruchten
Vice President, Investor Relations & Corporate Planning

Parex resources corporate_presentation january 2015 london

Recommandé

Recommandé

Contenu connexe

Tendances

Tendances (20)

En vedette

En vedette (6)

Similaire à Parex resources corporate_presentation january 2015 london

Similaire à Parex resources corporate_presentation january 2015 london (20)

Dernier

Dernier (20)

Parex resources corporate_presentation january 2015 london

Notes de l'éditeur