DISCIPLINED GROWTH + SHAREHOLDER RETURNS · DISCIPLINED GROWTH + SHAREHOLDER RETURNS OUR 10 YEAR...

AGM PRESENTATION | MAY 2019 1

DISCIPLINED GROWTH +

SHAREHOLDER RETURNS

OUR 10 YEAR JOURNEY

AGM PRESENTATION

MAY 8, 2019


WHAT PAREX HAS ACCOMPLISHED IN 10 YEARS

Parex as of: Inception Today

Production(boe/d) Nil ~52,000

2P Reserves (MMboe)(1) Nil 186

Working Capital (US$ MM)(2) $105 $207

Bank Debt (US$MM)(2) Nil Nil

Market Capitalization (C$MM)(3) $175 ~$3,039

(1) Parex’ working interest, as per the independent reserve report prepared by GLJ Petroleum Consultants effective Dec. 31, 2018

(2) As at March 31, 2019(3) Assuming C$20.63 share price and 147.3 outstanding shares at May 7, 2019

Since inception

Parex has delivered

Material growth and

Value creation

while maintaining

Financial discipline

November 2019 is our 10 year anniversary


(1,000)

(500)

-

500

1,000

1,500

2,000

2,500

2009 2010 2012 2013 2014 2015 2016 2017 2018 2019YTD

NET

AC

RES

(0

00

)

PAREX ACREAGE

Spin-out Bid Round Farm-in Acquisition Divested/Relinquished Farm-out

WHAT PAREX HAS ACCOMPLISHED IN 10 YEARS

Delivered Shareholder Value

CFO at $60/bbl

CFO at $55/bbl

CFO at $50/bblBRENT

Returning capital(Shares repurchases)

Exploration

Development

Maintenance

CFO at $65/bbl

0

50

100

150

200

250

300

350

400

450

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E

BO

E/M

ILLI

ON

WA

BA

SIC

SH

AR

ESPRODUCTION PER SHARE (DEBT ADJUSTED)

0

200

400

600

800

1000

1200

1400

1600

2010 2011 2012 2013 2014 2015 2016 2017 2018

MB

OE/

MM

BA

SIC

SH

AR

ES

2P RESERVES PER SHARE (DEBT ADJUSTED)

Parex 509

0

100

200

300

400

500

600

PRICE PERFORMANCE

Parex TSX TTEN


Continue to Deliver Shareholder Value

WHERE ARE WE TODAY?

1. 50,000 bopd milestone achieved

2. 3rd largest producer in Colombia

3. No debt and positive Q1’19 WC of US$207MM

4. High margin operation

o Q1’19 funds flow netback→ US$28/boe @ Brent $64/bbl

5. Ability to grow within cash flow:

o 2017 Production growth: 20% self-funded

o 2018 Production growth: 25% self-funded

o 2019E Production growth: ~20% self-funded

6. Capital allocation discipline

o Balanced capital program and return of capital

7. Focused management

o Ability to grow within a single country → Colombia

CFO at $60/bbl

CFO at $55/bbl

CFO at $50/bblBRENT

Returning capital(Shares repurchases)

Exploration

Development

Maintenance


OUR BUSINESS IS LOW COST

$28.10 $31.62 $36.68 $31.39 $27.65 $24-26 $27-29 $30-32 $33-35

($5.34)($3.18)($4.06)

($5.71)

($6.39)

($11.50)

$67.27

$74.97 $75.84

$68.32

$63.83$60

$65

$70$75

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

$55

$60

$65

$70

$75

$80

Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

USD

/BO

E

Cash Netback Tax G&A-Finance Transportation Opex Royalties Differential Brent Price

2019 Target Cash Netbacks(2)

Cash Netback(3)

(1) Cash netbacks are a non-GAAP measure defined as funds flow from operations per barrel of oil (2) 2019 target cash netbacks are based on production guidance mid-point excluding hedges and decommissioning & environmental liabilities.(3) Q2 2018 tax and cash netback adjusted to exclude a $137.5 million one-time voluntary tax restructuring during the three months ended June 30, 2018See advisories at the end of this presentation

2019 GUIDANCE

Parex Cash Netback(1)


2019 PLAN: HIGH NETBACKS ENABLE SHAREHOLDER RETURNS

$0$50

$100$150$200$250$300$350$400$450$500$550$600$650$700$750$800$850$900

SOURCES OF CASH MAINTENANCE DEVELOPMENT EXPLORATION BUS DEV. NCIB COLUMN1

Optionality(+/- ~$400)

(1) Normal issuer course bid assumes up to ~14.2 million shares repurchased at ~$21/share on average using a 2019E USD-CAD average rate of 1.32

(1)

2018YEWorking Capital

CFO at $60/bbl

CFO at $55/bbl

CFO at$50/bblBRENT

~$75

~$75

~$226(1)

~$15

~$50

Capex: ~$215

CFO at $65/bbl

MIL

LIO

NS

(U

SD)

CFO at $70/bbl

CFO at $75/bbl


In 2019, we plan to grow production by 20%, drill 16 exploration wells, buy-back 15 mm shares AND remain debt free with increased working capital

INDUSTRY LEADING FREE CASH FLOW RETURN

Capital allocation strategy for “optionality”

o Projects must “compete” for capital internally

o Returning capital to shareholder

o Investment/capital strategy has not changed just because we have significant FCF

~27%


FINDING & DEVELOPING CONVENTIONAL OIL RESERVES CREATES VALUE

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2016 2017 2018

2P

FD

&A

(U

SD/B

OE)

(1)

1 Year $/boe 3 Year $/boe

2018 Year-End ProvedProved + Probable

Proved+Probable+

Possible

FD&A USD/boe(1) $7.03 $7.29 $7.59

Recycle Ratio (FD&A)(1) 4.5x 4.3x 4.1x

After Tax NPV10% - CAD/sh(2) $21.25 $30.18 $40.69

Working Capital - CAD/Sh(3) $1.92 $1.92 $1.92

Total CAD/Sh(3) $23.17 $32.10 $42.61

(1) Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31 of the reported year, including Future Development Cost. Recycle Ratio is calculated using Q4 2018 Funds Flow From Operations per barrel divided by annual F&D or FD&A as applicable.

(2) Based on GLJ Petroleum Consultants Ltd. price forecast, as at January 1, 2019, which assumes $70.30/bbl over 2019-2023(3) Working Capital of US$219 million (CAD 298 million) and 155 million shares at December 31, 2018

See advisories at the end of this presentation

Solid Reserve Base


COLOMBIA

Capachos

CPO-11

SoCa

Fortuna

Aguas Blancas

DeMares

Playon

DIVERSIFIED 2019 DRILLING PROGRAM

VIM-1

46 Gross Wells Planned

Llanos Basin Expl. Wells Dev. Wells

o Merecureo Capachoso SoCao CPO-11

1141

--

17-

Middle Magdalena

o Aguas Blancas o DeMares/Playon o Fortuna

332

12-1

VIM-1: Lower Magdalena

o La Belleza 1

Total Wells Planned 16 30

Lower Magdalena

Middle Magdalena

Llanos Basin

Merecure


FOUNDATION FOR GROWTH: APPRAISE, DEVELOP & GENERATE FCF

As per the independent reserve report prepared by GLJ. effective Dec. 31/18

Faults GLJ 3P (2018YE) 2019 Exploration

LLA-32

LLA-34Chachalaca Tilo

Tigana

Jacana

Akira

Tua

Tarotaro

Aruco

KananaskisCalona

Chiricoca

Bacano

Curucucu

Jacamar

Cabrestero

Carmentea

Max

Totoro

Tigui

GUACO

AZOGUE

ODL OffloadingFaultsGLJ 3P (2018YE) Exploration WellsPipeline

-

5

10

15

20

25

30

35

40

45

50

2012 2013 2014 2015 2016 2017 2018 Q1 2019

MB

OE/

D

NET WORKING INTEREST PRODUCTION(SOCA AREA)

3-5 Years of Significant FCF Generation

SoCa AreaLlanos Basin


Capachos (50% WI, Operator)

• Located in the Arauca District near the Venezuelan border

• Producing at restricted rate of ~5,000 gross bopd

o Capachos-2: Guadalupe on production

o Andina-1: Guadalupe on production

o Andina-2: Guadalupe on production

• Phase-1 gas processing facility on line in Q2/19

• Drilling Andina Norte-1 exploration well

CAPACHOS DEVELOPMENT AND EXPLORATION POTENTIAL

Successful Operation in a Challenging Area

Guadalupe

depth structure

ANDINA-1

CAPACHOS-2

CAPACHOS SUR-2

ANDINA NORTE-1

ANDINA-2

Legacy well Parex wells Exploration

Facility/Pad Flowline


• Andina Norte prospect drilled the northern fault compartmento Well is cased and currently testing

CAPACHOS EXPLORATION POTENTIAL

Andina-2Andina Norte Prospect

Mirador

Guadalupe

Une

Andina-1

Prospective Zones Andina-1 Andina-2

Mirador Untested Untested

Guadalupe Producing ~1,000 bopd(restricted)

-

Upper Guad. Untested 1,606 bopd & 0.8 MMcf/d

(gross)

Lower Guad. 2,570 bopd & 1.2 MMcf/d (gross)

2,195 bopd & 0.9 MMcf/d

(gross)

Une 2,545 bopd & 8.7 MMcf/d (gross)

Untested

Mirador

Guadalupe

Une


What we do and how we impact the community

At Capachos, we established open dialog with stakeholders

• Arauca’s leaders visited our Casanare operations to assess our performance record (social initiatives, economic impact & environmental stewardship)

• We targeted our social investments towards Community priorities (e.g. water access & housing)

• Garnered local support from community leaders and formed key partnerships with institutions

• Committed to uphold ethnic groups’ rights

• Built strong relationships through the procurement of local goods & services

WE GIVE BACK TO THE COMMUNITIES WHERE WE OPERATE

US$400,000 funding the upgrade of the rural aqueduct system to provide clean water supply coverage for ~1,200 people

Open Dialog + Transparency + Partnerships = Tailored Initiatives & Community Buy-in


Water for All (US$1.6 Million)

• Invest in clean water supply infrastructure

• Ministry of Mines & Energy’s and ANH awarded initiative

• Show O&G projects contributing to clean water provision

Home Improvement (US$4.9 Million)

• Align with local development plans

• Parex supplies building materials

• Communities provide assurance of good use of materials

Projects for Taxes (US$340,000)

• Government of Colombia program to rebuild rural areas

• Companies invest up to 50% of taxes in projects

• Parex was the 1st program participant

CORPORATE ESG INITIATIVES

US$15 million invested in projects since 2014 Investments focused on economic development and improvement of local infrastructure/services.


VIDEO – INSTALLATION OF WEATHER RADAR IN CARIMAGUA

Installation of weather

radar capable of delivering

early warning signs for weather

conditions

Covers ~1.2 million people


(1) Subject to regulatory approvalSee advisories at the end of this presentation

1. Fortuna(1)

o Acquired Q4/18o 3 wells planned in 2019

2. CPO-11(1)

o Acquired Q4/18

3. Merecureo Acquired Q1/19

4. ANH Bid Round Q2/19o Expect to be active participant

o Regular quarterly Bid Round to follow

Why we like these and timing of activity✓ Material prospect sizes

✓ Wide variety of play types

✓ Accessible operating areas for 2019-2020 drilling

BEYOND 2019: ASSET REPLENISHMENT FOR FUTURE GROWTH

Terminal Covenas

Trucking

Parex Blocks

Pipeline

River

CPO-11

Cartagena

FORTUNA

Mercure


Production growth & free cash flow

New growth:exploration & tight oil

Shareholder return: Share buybacks

Deliver top quartile per share growth

Replenish & diversify portfolio

Return free cash flow to shareholders

2019 2020 - 2022

WHERE ARE WE GOING FROM HERE?

Our focus

Is on Profitable

Future Growth

& Delivering

Shareholder Returns


THANK YOU FOR THE SUPPORT

On behalf of our Board of Directors

and the team at Parex, we thank

all our stakeholders for their

continued support.

Investor RelationsContact us:Mike KruchtenSr. VP, Capital Markets & Corporate PlanningTel: +1 (403) 517-1733


MANAGEMENT TEAMDave Taylor, CEO & President Ken Pinsky, Chief Financial Officer

Mr. Taylor is responsible for creating, planning, implementing and integrating the strategic direction His geologicallydriven, business-minded focus on exploration, production and business development activities has been successfullyapplied in prior companies over his 35 year career. From 2015 to 2017, he served as President and EVP Exploration &BD (2009-2015) at Parex. Mr. Taylor was VP Business Development of Petro Andina (2007-2009). Prior to that, he wasVP Exploration and Int’l Operations with Husky Energy and VP Exploration for Renaissance Energy. He has also heldvarious management, business development and senior technical positions with Chauvco, Imperial Oil and ExxonProduction Research. Mr. Taylor holds a MSc. and a BA in Geology. He is a member of APEGGA, CSPG, AAPG, and is aformer Director of Geoscience BC.

Over 25 years of in-depth financial experience, with the last 16 years holding senior financial roles in the upstream O&Gsector focusing on corporate finance , governance, taxation and investor relations. Mr. Pinsky served as CFO of PetroAndina from 2008 to 2009, prior to that, he was CEO of Argent Energy Trust from 2001 to 2004, Director of Finance forthe Atlanta Exploration Group of Companies from 1997-2001. He began his career at Price Waterhouse in 1987, he iscurrently a member of the Canadian Institute of Chartered Accountants and a Chartered Financial Analyst.

Eric Furlan, Chief Operating Officer Ryan Fowler, Sr. VP Exploration & Business Development

Mr. Furlan has worked in a variety of roles ranging from field operations to reservoir development planning andexecution since the beginning of his career. He served as SVP of Engineering from 2017 to 2018 and VP ofEngineering from 2012 to 2017 at Parex. Prior to Parex, Mr. Furlan was the General Manager of Development atPetro Andina. He has also held leadership and senior technical positions with Chevron Corporation in Canada andinternationally. He holds a Bachelor of Applied Science in Chemical Engineering and he is a member of APEGGA.

Mr. Fowler is accountable for leading his team in identifying and securing top-tier exploration and developmentopportunities. He has close to 30 years of experience in exploration and production activities. He served as VPExploration for Parex (2012-2017), New Ventures Exploration Manager for Petro Andina and then Parex (2008-2012).Prior to that, Mr. Fowler held management positions in Northern Alberta production and Int’l New Ventures at HuskyEnergy and various senior technical positions at Husky Energy, Canadian 88 Energy, and Rigel O&G focused afterstarting his career as a geologist at Amoco Canada. He holds a Bachelor of Applied Science in Geological Engineering.

Mike Kruchten, Sr. VP Capital Markets & Corporate Planning Lee DiStefano, President & Country Manager Colombia

Mr. Kruchten is responsible for investor relations, enterprise risk management, financial forecasting and strategicplanning. Previously, He was VP Capital Markets & Corporate Planning (2009-2019) and Manager, Corporate Planningand Investor Relations of Petro Andina Resources and Parex (2008-2009) . Prior to joining Petro Andina, Mr. Kruchtenhad several financial leadership roles with BP in Calgary, Aberdeen and Dubai and began his career as a gaseconomist with Union Gas (Enbridge) in 1994. He holds a Bachelor of Economics degree, a Masters in Economics, anMBA and a Certified Professional in Investor Relations (CPIR) designation

As the President and Country Manager of Parex Resources , Mr. DiStefano is responsible for Parex’ exploration,production, and marketing activities in Colombia. Prior to joining Parex Colombia in 2011, Mr. DiStefano enjoyed a 30-year long int’l career serving in Country Manager roles with Amoco in Peru and Brazil, for Canadian Hunter in Argentinaand as Exploration Manager Latin America/Far East for Noble Energy. Prior to assuming the Country Manager positionswith Amoco, Mr. DiStefano performed various exploration related functions for Amoco in Colombia, Trinidad,Guatemala, Spain, New Zealand, India and northeastern China. He holds MSc. Geology, a BA in Geology and an MBA.

Josh Share, VP Corporate Services

Mr. Share joined Parex in 2019 as VP Corporate Services. He has over 15 years of experience in Human Resources inthe energy sector, with broad expertise in leading int’l and domestic HR, Communications and Corporate Servicesfunctions. His int’l experience includes operations and new entry in various countries. Mr. Share began his HRcareer at Nexen, gaining experience in Total Rewards and Talent Acquisition before moving to BP Canada, thentransferred to BP in the US and assumed roles of increasing responsibility across the Upstream Segment becomingHR Director for Western Hemisphere. In 2014, Mr. Share returned to Nexen as General Manager, HR BusinessPartners. Later, he took on the role of General Manager - Total Rewards & HR Programs, followed by VP, HR,Communications & Corporate Services for Nexen/CNOOC Int’l businesses. He holds a Bachelor of Education degreefrom the University of Winnipeg and a Master of Business Administration from the Haskayne School of Business.


This presentation is provided for informational purposes only as of May 8, 2019 is not complete, andmay not contain certain material information about Parex Resources Inc. ("Parex" or the "Company"),including important disclosures and risk factors associated with an investment in Parex. Thispresentation does not take into account the particular investment objectives or financial circumstancesof any specific person who may receive it and does not constitute an offer to sell or a solicitation of anoffer to buy any security in Canada, the United States or any other jurisdiction. The contents of thispresentation have not been approved or disapproved by any securities commission or regulatoryauthority in Canada, the United Sates or any other jurisdiction, and Parex expressly disclaims any duty onParex to make disclosure or any filings with any securities commission or regulatory authority, beyondthat imposed by applicable laws.

Forward-Looking Statements and FOFI

Certain information regarding Parex set forth in this document contains forward-looking statements thatinvolve 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 similarwords, or statements that certain events or conditions "may" or "will" occur are intended to identifyforward-looking statements. Such statements represent Parex' internal projections, estimates or beliefsconcerning, among other things, future growth, results of operations, production, future capital andother expenditures (including the amount, nature and sources of funding thereof), plans for and resultsof drilling activity, business prospects and opportunities. These statements are only predictions andactual events or results may differ materially. Although the Company’s management believes that theexpectations reflected in the forward-looking statements are reasonable, it cannot guarantee futureresults, levels of activity, performance or achievement since such expectations are inherently subject tosignificant business, economic, competitive, political and social uncertainties and contingencies. Manyfactors could cause Parex' actual results to differ materially from those expressed or implied in anyforward-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; theCompany's vision, strategy and values; Parex' estimated 2019 capital budgets, including the expectedallocation of such budget to the number of wells and capital expenditures for each ofdevelopment/appraisal in existing fields, exploration, appraisal and maintenance;

How to reach us

PAREX RESOURCES INC.

2700 Eighth Avenue Place, West Tower

585 8th Avenue SW Calgary

AB T2P 1G1 Canada

Tel: 403-265-4800

Fax: 403-265-8216

Email: [email protected]

Website: www.parexresources.com

Mike Kruchten

Sr. Vice President, Capital Markets & Corporate Planning

ADVISORIES


ADVISORIESthe Company's forecasted 2019 average production; the Company's estimated average daily production for full year 2019; the Company's planned capital program, including anticipated amounts focused onexisting discoveries and the appraisal programs and the timing of drilling key exploration prospects, seismic programs and development drilling; anticipated cash flow, cash flow per share, funds flow fromoperations netback, capital expenditures, percentage of cash flow growth, cash netbacks, and funds flow from operations for 2019; the Company's exploration, development and appraisal program for 2019including anticipated number and type of wells, drill ready prospects, the focus of development/appraisal drilling and the potential for drilling of additional follow-up appraisal wells and facilities in 2019;exploration prospects; the Company's exploration schedule; the Company's drilling plans and production capability/potential; anticipated drilling locations, including the Company's delineation and drillingplans; the Company's plans to target additional growth opportunities; the Company's future plans for its business, including plans to complete further acquisitions and increase production; financial andbusiness prospects and financial outlook; and activities to be undertaken in various areas. Statements relating to "reserves" or "resources" are forward-looking statements, as they involve the impliedassessment, based on estimates and assumptions that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.

• These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; industry conditions includingchanges 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 availabilityof qualified personnel; the results of exploration and development drilling and related activities; risks related to obtaining required approvals of regulatory authorities, in Canada and Colombia and partner andcommunity approvals in Colombia; 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, tax rates and/or incentive programs relating to the oil industry; changes to pipeline capacity; ability to accesssufficient capital from internal and external sources; failure of counterparties to perform under the terms of their contracts; risk that Parex’ evaluation of its existing portfolio of assets and exploration anddevelopment opportunities is not consistent with its expectation’s; that production test results may not be indicative of long-term performance or ultimate recovery and other factors, many of which are beyondthe 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' operations and financial resultsare 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 beconsistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current commodityprices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact of increasingcompetition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and communityapprovals; royalty rates; future operating costs; effects of regulation by governmental agencies; uninterrupted access to areas of Parex' operations and infrastructure; recoverability of reserves and futureproduction rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operated producing fields;pipeline capacity; that Parex 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 Parex'conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop it's oil and gas properties in the manner currently contemplated; current or, where applicable,proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex' reserves volumes and the assumptions related thereto (includingcommodity prices and development costs) are accurate in all material respects; that Parex will 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; 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 onParex' current and future operations and such information may not be appropriate for other purposes. Parex' actual results, performance or achievement could differ materially from those expressed in, orimplied 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, whatbenefits 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 asa result of new information, future events or results or otherwise, other than as required by applicable securities laws. The forward-looking statements contained in this presentation are expressly qualified bythis cautionary statement.


ADVISORIES

• This document also contains a financial outlook, in particular the information set forth on slides 2 and 4-6. Such financial outlook has been prepared by Parex' management to provide an outlook of theCompany's activities and results. The financial outlook has been prepared based on a number of assumptions including the assumptions discussed above and assumptions with respect to the costs andexpenditures to be incurred by the Company, capital equipment and operating costs, foreign exchange rates, taxation rates for the Company, general and administrative expenses and the prices to be paid forthe Company's production. Management does not have firm commitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that suchoperating results will be achieved and, accordingly, the complete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results ofoperations of the Company and the resulting financial results will likely vary from the amounts set forth in the analysis presented in this presentation, and such variation may be material. The Company and itsmanagement believe that the financial outlook has been prepared on a reasonable basis, reflecting the best estimates and judgments, and represent, to the best of management's knowledge and opinion,Parex's expected expenditures and results of operations. However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on asnecessarily indicative of future results. Except as required by applicable securities laws, Parex undertakes no obligation to update such financial outlook.

Oil and Gas Information

• The estimates of Parex' December 31, 2018 reserves set forth in this presentation have been prepared by GLJ Petroleum Consultants Ltd. ("GLJ") as of December 31, 2018 with a preparation date of February7, 2019 (the "GLJ 2017 Report") in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluations Handbook (the"COGEH") and using GLJ's forecast prices and costs as at January 1, 2019. The estimates of Parex' December 31, 2017 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2017with a preparation date of February 2, 2018 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2018. The estimates of Parex' December 31, 2016 reservesset forth in this presentation have been prepared by GLJ as of December 31, 2016 with a preparation date of February 6, 2017 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices andcosts as at January 1, 2017. The estimates of Parex' December 31, 2015 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2015 with a preparation date of February 5, 2016in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2016. The estimates of Parex' December 31, 2014 reserves set forth in this presentation have beenprepared by GLJ as of December 31, 2014 with a preparation date of February 13, 2015 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2015. Theestimates of Parex' December 31, 2013 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2013 with a preparation date of February 20, 2014 in accordance with NI 51-101and the COGEH and using GLJ's forecast prices and costs as at January 1, 2014. The estimates of Parex' December 31, 2012 reserves set forth in this presentation have been prepared by GLJ as of December 31,2012 with a preparation date of February 28, 2013 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2013. The estimates of Parex' December 31, 2011reserves set forth in this presentation have been prepared by GLJ as of December 31, 2011 with a preparation date of February 1, 2012 in accordance with NI 51-101 and the COGEH and using GLJ's forecastprices and costs as at January 1, 2012. The estimates of Parex' December 31, 2010 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2010 with a preparation date ofJanuary 31, 2011 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2011.

• “Proved" or "1P" 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 provedreserves.

• "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 thesum 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 thesum 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.


ADVISORIES

• "2P" means Proved Plus Probable reserves.

• "3P" means Proved Plus Probable Plus Possible reserves.

• Estimates of the net present value of the future net revenue from Parex' reserves do not represent the fair market value of Parex' reserves. The estimates of reserves and future net revenue from individualproperties or wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation.

• This presentation contains certain oil and gas metrics, including F&D, FD&A, FD&A/boe, reserves life index (or RLI), operating netbacks, cash netbacks, funds flow from operations netback, CAGR, and recycleratios, which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not beused to make comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators ofthe future performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management usesthese oil and gas metrics for its own performance measurements and to provide investors with measures to compare the Company's operations over time.

• Readers are cautioned that the information provided by these metrics, or that can be derived from the metrics presented herein, should not be relied upon for investment or other purposes. A summary of thecalculations of such metrics are as follows:

o Finding and development (“F&D”) costs are calculated by dividing capital expenditures by the change in reserves within the applicable reserves category. F&D costs, including FDC, include all capitalexpenditures in the year as well as the change in FDC required to bring the reserves within the specified reserves category on production.

o Finding, development and acquisition ("FD&A”) costs represent the costs of property acquisition, exploration, and development incurred. The aggregate of the exploration and development costsincurred in the most recent financial year and the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reservesadditions for that year.

o FD&A costs are calculated as capital expenditures plus net acquisition costs plus change in FDC. FD&A per boe is calculated as FD&A costs divided by reserves additions for the applicable period.

o Funds Flow from Operations per boe is calculated by dividing Funds Flow from Operations by sales volume for the period.

o Operating netback is calculated as oil & gas revenue less expenses (royalties, production and transportation) divided by production for the period.

• "BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalencyconversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to naturalgas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.

• All of Parex’ crude oil reserves disclosed herein are located in Colombia. The Company has light, medium and heavy crude oil and natural gas liquids product types. The recovery and reserve estimates ofreserves provided in this document are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual reserves may eventually prove to be greater than, or less than, theestimates provided herein. All evaluations and reviews of future net revenue contained in GLJ's reports are stated prior to any provision for interest costs or general and administrative costs and after thededuction of royalties, development costs, production costs, well abandonment costs and estimated future capital expenditures for wells to which reserves have been assigned.


ADVISORIES

Certain information in this document may constitute "analogous information" as defined in NI 51-101. Such information includes production estimates, drilling results, test rates, reserves estimates and otherinformation retrieved from other publicly available sources. Management of Parex believes the information is relevant as it may help to define the reservoir characteristics and production profile of lands inwhich Parex may hold an interest. Parex is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and is unable to confirm that the analogous informationwas prepared in accordance with NI 51-101. Such information is not an estimate of the production, reserves or resources attributable to lands held or to be held by Parex and there is no certainty that theproduction, reserves or resources data and economic information for the lands held or to be held by Parex will be similar to the information presented herein. The reader is cautioned that the data relied uponby Parex may be in error and/or may not be analogous to such lands held or to be held by Parex.

• Certain other information contained in this presentation has been prepared by third-party sources, which information has not been independently audited or verified by Parex. No representation or warranty,express or implied, is made by Parex as to the accuracy or completeness of the information contained in this document, and nothing contained in this presentation is, or shall be relied upon as, a promise orrepresentation by Parex.

• This presentation contains references to type well production and economics, which are derived, at least in part, from available information respecting the well economics of other companies and, as such,there is no guarantee that Parex will achieve the stated or similar results, capital costs and return costs representative per well.

• References in this presentation to initial production test rates, initial "flow" rates, initial flow testing, and "peak" rates are useful in confirming the presence of hydrocarbons, however such rates are notdeterminative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, investors arecautioned not to place reliance on such rates in calculating the aggregate production for Parex. Parex has not conducted a pressure transient analysis or well-test interpretation on the wells referenced in thispresentation. As such, all data should be considered to be preliminary until such analysis or interpretation has been done.

Financial Matters

• The Company discloses several financial measures that do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS"). These financial measures includeoperating netbacks, cash netbacks, funds flow netbacks, funds flow per share, free cashflow, and funds flow from operations. Management believes that these financial measures are useful supplementalinformation to analyze operating performance and provide an indication of the results generated by the Company’s principal business activities. Investors should be cautioned that these measures should notbe construed as an alternative to net income or other measures of financial performance as determined in accordance with IFRS. Parex’s method of calculating these measures may differ from othercompanies, and accordingly, they may not be comparable to similar measures used by other companies. Please see the Company’s most recent Management’s Discussion and Analysis, which is available atwww.sedar.com for additional information about these financial measures.

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