parex resources inc

CORPORATE PRESENTATION | OCTOBER 2021 11

PAREX RESOURCES INC.

OPTIMIZING SHAREHOLDER VALUE

OCTOBER 2021


Parex is committed to developing energy

resources in a manner that is economically,

environmentally and socially sustainable as it

builds a portfolio of drilling opportunities and

advances its exploration and development

program to evolve into the leading LATAM

independent E&P company.

WHO IS PAREX?

Parex is a Calgary based company that focuses on sustainable, profitable, conventional oil and gas production.


CORPORATE SNAPSHOT

(1) Debt-adjusted production per share (“DAPS”) growth. (2) Parex’ WI per the independent reserve report prepared by GLJ Petroleum Consultants (“GLJ”) effective Dec. 31, 2020.(3) As at June 30, 2021.(4) Estimated annual dividend yield using C$20/sh price.(5) As at August 31, 2021(6) As at Sep 23, 2021, shares repurchased is since October 15, 2017.See “Advisories” at the end of this presentation

Capital Structure

Cash - US$ million(3)

~$371Net Working Capital - US$ million(3)

~$352US$200 MM Undrawn Credit Facility(3)

No DebtDividend Yield(4)

2.5%Market Capitalization(5)

~C$2.4 Billion Common Shares Basic Outstanding(5)

(TSX: PXT)

122.5 MMShares Repurchased(6)

C$831 MM

Operating Results 2020 H1 2021

Brent ($/bbl) $43.30 $65.23

Production (boe/d) 46,518 45,332

DAPS Growth(1) -3% 2%

FCF Yield (%) 9% 8%

Capital Expenditures – US$ MM $141 $84

Funds Flow Provided by Operations – US$ MM $297 $257

Free Funds Flow – US$ $156 $172

Shares Repurchased – MM shares 13.9 7.7

Reserves (2020 Year-End)

2P Reserves (Dec. 31)(2) – Mmboe 195 -

2P Reserve Life Index – years 11 -


Profitable reserves conversionOptimizing decline rates

Significant Free Cash Flow generation

Validating Colombian discoveriesAcceleration of exploration portfolio

Long-term profitable growth

Leveraging existing core competenciesComplement Colombian portfolio

Advancement of key ESG initiativesESG governance structure

Enhancement of inclusion and diversity strategy

Technology to reduce emissions

Disciplined Capital Allocation Sustainable Business Model Investigate New Core AreasUncompromised Commitment

to ESG Excellence

Parex has a 360-degree approach: Embracing Communities, Environment, and Stakeholders

PAREX’ STRATEGY: BUILDING A BALANCED PORTFOLIO


Corporate diversity & inclusion planShareholder return through

buybacks & dividends

Environment Social Governance

Introduce GHGs emissions reductions targets (July 2021)

Invest in geothermal and solar energies to

lower carbon footprintfrom operated fields’ power generation

Reduction of GHG emissions intensity rate year-over-year

Biodiversity Protection —

trees planting, repopulation of vulnerable turtles & protection of forests

Water for All - increase community access to clean water

Clean Energy Program —improve community access to electricity using renewables sources

Provide on-going community supportduring the Pandemic

2023 diversity target —30% women on the Board

30% of 2021 variable compensation

linked to ESG metrics

Transparency reporting through TCFD Recommendations & SASB Standards

CURRENT ESG PRIORITIES


ESG PERFORMANCE – 2020 HIGHLIGHTS & RATINGS(1)(2)

Environment

Strong safety records – improvements in LTI (↓93%) and TRIF (↓93%) since 2017

Displaced ~5% of Las Maracas’ fossil fuel based energy with geothermal energy power generation

Social

23% reduction in scopes 1 & 2 GHG emissions intensity to 23 Kg CO2e/boe from 30 Kg CO2e/boe in 2019

67,124 Mt CO2e emissions avoided

US$4.6MM invested to improve access to water, education, better housing, and infrastructure

Over 12,706 people gained access to clean waterthrough Parex’ water initiatives

Governance

Diversity – 30% of directors being women by 2023

7-year track record of progressing sustainability disclosure

Compensation aligned with shareholders’ interest – 98% votes for on say-on-pay at the 2021 AGM

100% independent committees’ chair and members

Experienced & diverse Board

Oversight of ESG matters, including climate-related risks

Diversity

Independence

WOMEN

MEN

INDEPENDENTS

NON-INDEPENDENTS

2020 Climate Change Score B2020 Water Security Score B-

ISS Quality Score RatingsEnvironment: 2 / Social: 1 / Governance: 3

(Decile rating, 1= leadership in managing ESG risk)

ESG Risk Rating – 28.5(6th percentile among E&Ps, 1=lowest risk)

(1) Ratings on October 1, 2021(2) The use by Parex of ESG ratings/data/logo do not constitute a sponsorship, endorsement, recommendation, or promotion of the Company by the rating agenciesincluding Sustainalytics, CDP, ISS or MSCI. The Ratings and data are the property of the agencies and are provided ‘as-is’ and without warranty. Names and logos are the trademarks or the agencies.


BUILDING A SUSTAINABLE LOW CARBON FUTURE

0

5

10

15

20

25

30

35

2019 2020 2021T 2025 2030 2035 2040 2045 2050

KG

CO

2E/

BO

E(1)

Zero routine flaring by 2025

Reduce Scopes 1 & 2 GHG emissions intensity from operated assets by:

oReducing flaring volumes,

oAchieving operational efficiencies,

oDisplacing carbon intensive fuels; and

o Increasing power generation from renewables.

Net-zero ambition

Reduce operated assets’ scopes 1 & 2 GHG emissions intensity by 50% by 2030 from a 2019 baseline

(1) Scopes 1 & 2 GHG emissions intensity per boe from operated assets

Parex aspires to become one of the least carbon intensive E&P companies


EMISSION FREE GEOTHERMAL ENERGY POWERS PAREX PRODUCTION

Parex installed Colombia’s first geothermal power unit that captures the heat from hot water by-product from oil production. Thefirst pilot unit is on the Las Maracas’ field and the second pilot unit is anticipated to be completed in September 2021 on the Rumba

field. The project aims to produce approximately 100kW of energy, replacing the fossil-fuel derived power in the pilot fields.

Parex is committed to building a sustainable low carbon future

Benefits of the Geothermal Unit:• Offset emissions – displace higher carbon intensive energy sources• Modular design, therefore scalable and portable • Smaller footprint compared to solar & wind


CAPITAL ALLOCATION – OPTIONS TO GROW SHAREHOLDER RETURNS

Industry leading Cash Flow generation provides optionality for:oResilient Dividend Program

oGrowth Capex

oFlexible Share Buy-Back

Remaining FFO provides optionality for:• Additional growth (CAPEX)• Share repurchases

$0

$100

$200

$300

$400

$500

$600

FFO DIVIDENDS CAPEX REMAINING FFO

USD

MM

$55/bblBrent

$65/bbl

$75/bbl

~$50

~$275-300

~$150-$250

Op

tio

nal

ity


WHY INVEST IN PAREX?

1. No Debt & Positive Q2’21 Working Capital of US $352 MM

2. High Margins

o Q2’21 operating netback → US $41.29/boe at Brent $69.08/bbl

o Q2’21 FFO netback → US $32.02/boe

4. Capital Allocation Discipline

o Balanced capital program and return of capital

5. Focused Shareholder Return

o Q2’21 CROIC (1) → 6.2%

o Share buy-back funded from free cash flow

▪ 43.2 million common shares repurchased since 2017(2)

▪ Plan to repurchase a total of 12.9MM shares in 2021

Delivering Shareholder Value

Source: Company’s data – June 30, 2021

$0

$5

$10

$15

$20

$25

0.00

0.10

0.20

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Q1

20

16

Q2

20

16

Q3

20

16

Q4

20

16

Q1

20

17

Q2

20

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20

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Q4

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17

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SHA

RE

PR

ICE

(C$)

BO

E/D

PER

1,0

00 S

HA

RES

DEBT-ADJUSTED PRODUCTION PER SHARE (DAPS)

PPS DAPS Share Price (QE)

(1) Cash return on invested capital calculated (CROIC), a non-GAAP measure, is calculated as EBITDA divided by average carrying value of exploration and evaluation assets and property, plant and equipment assets, excluding accumulated DD&A

(2) Shares repurchased from October 15, 2017 to September 23,, 2021.


GROWTH OPPORTUNITIES – M&A CRITERIA

Conventional Oil & Gas

Onshore/Shallow Water

Clear Path to Asset Growth

Compete Against Colombia Project

Returns

Transparent FX & Payment Regime

M&A is an option, not a requirement for Parex.


DELIVERING CONSISTENT SHAREHOLDER VALUE

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50

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450

500

2016 2017 2018 2019 2020 2021E

BO

E/M

ILLI

ON

WA

BA

SIC

SH

AR

ES

PRODUCTION PER SHARE (DEBT ADJUSTED)

-40%

-20%

0%

20%

40%

60%

80%

2016 2017 2018 2019 2020

TOTA

L R

ETU

RN

PAREX VS. TSX ENERGY INDEX

PXT S&P/TSX Energy Index

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60

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80

$0.00

$0.50

$1.00

$1.50

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$4.00

2015 2016 2017 2018 2019 2020

BR

ENT O

IL PR

ICE (U

SD/B

BL)

FUN

DS

FLO

W P

ER S

HA

RE

(USD

)

FUNDS FLOW PER BASIC SHARE

FFO/SHARE Brent Oil Price

See “Advisories” at the end of this presentation

0

2

4

6

8

10

12

14

16

18

2015 2016 2017 2018 2019 2020

YEA

RS

RESERVE LIFE INDEX

PDP RLI 1P RLI 2P RLI 3P RLI


STRONG RESERVE PER SHARE GROWTH

63%123% 27% 28% 49% 30% 24% 18%

0%

20%

40%

60%

80%

100%

120%

140%

0.0

0.1

0.2

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0.5

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0.7

0.8

2012 2013 2014 2015 2016 2017 2018 2019 2020

RES

ERV

ES (

BO

E/B

ASI

C S

HA

RE)

PDP RESERVES PER SHARE DEBT ADJUSTED

112% 82% 18% 33% 47% 19% 18% 14%

0.0

0.2

0.4

0.6

0.8

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1.2

1.4

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1.8

2012 2013 2014 2015 2016 2017 2018 2019 2020

RES

ERV

ES (

BO

E/B

ASI

C S

HA

RE)

2P RESERVES PER SHARE DEBT ADJUSTED

84%99% 13% 34% 52% 33% 25% 7%

0.0

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1.0

1.2

1.4

2012 2013 2014 2015 2016 2017 2018 2019 2020

RES

ERV

ES (

BO

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ASI

C S

HA

RE)

1P RESERVES PER SHARE DEBT ADJUSTED

Strong Reserve Per Share Growth Supported By:• Asset Performance• Exploration Success• Share Buy-Back Program

New Block Initially Added 7.8 Mmboe



INCREASING PRODUCTION WHILE RETURNING FCF TO SHAREHOLDERS

Since 2017(1):

• Production increased by 35% (67% prior to COVID-19 in Q1 2020).

• Working Capital increased from $131 MM to $352 MM.

o Debt Free since Q2 2015.

• Parex has reduced Shares Outstanding by ~18%.

o Achieved through industry leading share buy-back program.

o PXT has repurchased an aggregate of 41 million shares and has returned C$784 MM to shareholders since 2017(2).

(1) As of June 30, 2021.

(2) Shares repurchased from October 15, 2017 to July 31, 2021.

50

100

150

200

250

300

2017 2018 2019 2020 2021

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

FAC

TOR

OF

20

17

BA

SE V

ALU

ES

Production (MBOE/D) Current Shares Outstanding Working Capital

-18%

169%

35%

67%


INDUSTRY LEADING SHARE BUY-BACK PROGRAM

Year # Shares Bought Back Capital Returned to Shareholders

(C$ MM)

2017 576,600 $9

2018 2,745,580 $55

2019 14,679,474 $300

2020 13,851,994 $230

2021(1) 11,299,195 $237

Total 43,152,843 C$831MM

Parex Resources is committed to returning capital to shareholders through the NCIB and share buy-

back program.

Since the first NCIB in 2017, PXT has repurchased roughly 43 MM shares and has returned C$831 MM

to shareholders.

(1) As of October 23, 2021.

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2017 2018 2019 2020 2021

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

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D M

ILLION

MIL

LIO

N S

HA

RES

# Shares Bought Back Cost of Share Buybacks


PAREX FUNDS FLOW NETBACK(1)

$22.29(2) $24.65(2) $29.61(2) $17.52(2) $29.98(2) $32.02(2)

$6.38

$2.88

$6.70

$8.69

$12.41$54.75

$71.59

$64.21

$43.30

$61.32

$69.08

-$5

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$55

$60

$65

$70

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2017 2018 2019 2020 Q1 2021 Q2 2021

USD

/BO

E

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

(1) Funds flow netback is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by sales volumes for the period(2) In Q2 2019, the Company changed how it presents funds flow provided by operations to present on a more comparable basis to industry presentation. Amounts have been restated for prior periods.See “Advisories” at the end of this presentation


INDUSTRY LEADING PROFITABILITY

(1) Companies included in peer group are: ARX, BTE, BIR, CNE, CPG, ERF, FEC, GPRK, GTE, NVA, POU, PEY, VII, VET(2) Values obtained from documents filed publicly by the peer group on their issuer profiles and Bloomberg on March 26, 2020.

Despite a year of volatility and record low oil prices, Parex was able to earn a positive net income and recorded industry leading operating netbacks.

Parex

$-

$5

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/BO

E

2020 Operating Netback(1)(2)

Parex

$(3,500)

$(3,000)

$(2,500)

$(2,000)

$(1,500)

$(1,000)

$(500)

$-

$500

USD

MM

2020 Net Income for E&Ps with Market Cap > $1B(2)(3)

(2) Values obtained from documents filed publicly by the peer group on their issuer profiles and Bloomberg on March 26, 2020.(3) Companies included in peer group are: ARX, CPG, CVE, EOG, ERF, FRU, MEG, PEY, POU, PSK, SU, TOU, VET, WCP


CONVENTIONAL OIL RESERVES GENERATE VALUE

$7.29 $7.57

$8.45

$5.03

$6.15

$7.58

$0

$1

$2

$3

$4

$5

$6

$7

$8

$9

2018 2019 2020

2P

FD

&A

(U

SD/B

OE)

(1)

1 Year $/boe 3 Year $/boe

2020YE

Proved Developed Producing Proved

Proved + Probable

Proved+Probable+

Possible

FD&A USD/boe(1) $7.73 $12.33 $8.45 $4.02

Recycle Ratio (FD&A)(1) 2.5x 1.6x 2.3x 4.8x

After Tax NPV10% - C$/sh(2) $18.00 $27.64 $37.79 $50.95

Working Capital – C$/sh(3) $3.11 $3.11 $3.11 $3.11

NAV at Brent $65 Flat - C$/Sh(2) $21.11 $30.76 $40.90 $54.06

(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 an estimated Q4 2020 Funds Flow From Operations. per barrel divided by annual F&D or FD&A as applicable.

(2) At Parex’ request, the GLJ 2020 Report was calculated using a constant $65/bbl Brent oil price.(3) Working Capital of US$320 million and 131 million shares at December 31, 2020.



FOUNDATION FOR LONG-TERM PRODUCTION: APPRAISE & DEVELOP

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RES

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NET WORKING INTEREST RESERVES* - LAST 5 YEARS

(LLA-32, LLA-34 & Cabrestero)

1P 2P 3P*Per the independent reserve reports prepared by GLJ Petroleum Consultants Ltd. effective Dec. 31 of the reported year. See “Advisories” at the end of this presentation

Generation of Significant Free Cash Flow

0

10,000

20,000

30,000

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2016 2017 2018 2019 2020

BO

E/D

NET WORKING INTEREST PRODUCTION

(LLA-32, LLA-34 & Cabrestero)

Faults

GLJ 3P (2020YE)

Pipeline


BUILDING A SUSTAINABLE BUSINESS – 2021 ACTIVITIES

VIM-43

LLA-26LLA-34

LLA-134

CPO-11

LLA-94 CabresteroLLA-32

VSM-36

VSM-25

Boranda VMM-46

Capachos

AraucaLLA-38

Fortuna

Merecure

LLA-30

DeMaresVMM-9

VIM-43Commence 3D seismic

VIM-1Planadas-1 exploration well spud

on July 30, 2021. Continuing to evaluate oil and CNG

development plans for La Belleza

BorandaDrilling 1-2 appraisal wells

LLA-34Infill drilling & waterflood

expansion

LLA-94Drill Humea exploration well

AraucaEntered into initial work plan with

Ecopetrol and the first of four wells planned to begin Q1 2022

VMM-46Acquisition of 215 sq km of 3D seismic expected October 2021

FortunaDrilling Perla Negra horizontal well testing

the Olini carbonate Formation

CapachosCommenced permitting a 6 well drilling program

(3 appraisal wells & 3 exploration wells)

LLA-32Commence drilling Groot

exploration well

Cabrestero4-6 well program – drilling

commenced June 2021

Parex has assembled a breadth of inventory opportunities. Building on our world-class SoCa base, we

are accelerating our capital investments to unlock the growth

chapter

VIM-1


• On Strategy: Partnership with Ecopetrol in the highly prolific Llanos Basin in Arauca

• Meaningful Portfolio Additions: Near term, proven production potential and reserves plus drill ready exploration prospects and future exploration leads. Company 2P Reserves(1) of 7.8 Mmboe

• Regional Expansion: Parex operated Capachos asset (Ecopetrol partnered) is 40-km south of LLA-38

• Near-term Catalyst: Parex as operator will deliver an initial work plan with activity beginning in 2021 and a continuous drill program targeted in early 2022

STRATEGIC PARTNERSHIP WITH ECOPETROL

Regional Arauca Map

(1) GLJ Ltd. Proved plus Probable Reserves As of January 1, 2021


Arauca Block – Reactivation, Existing Infrastructure

• Partially developed, proven light oil field

• Leveraging existing 3D seismic & infrastructure accelerates timeline to production and cash flow

• High deliverability wells with historical initial production rates between 1,800 – 4,000+ bbl/d from the Barco formation

• Multiple pool extension/upside opportunities

LLA-38 – Drill Ready Exploration Prospect

• Califa-1 prospect, 3D seismic defined and technically drill ready

• Multiple 2D seismic defined leads waiting on expanded 3D program to improve confidence and identify new targets

ASSET OVERVIEW – POTENTIAL FOR SUSTAINABLE DEVELOPMENT

(1) GLJ Ltd. Proved plus Probable Reserves As of January 1, 2021

Arauca Block & LLA-38 Map

LLA38

3D Seismic

Pipelines

Planned 3D(outline approx.)

Infill well

Step-Out well

Exploration lead

Exploration well


VIM-1: LA BELLEZA DISCOVERY

VIM-1 (50% WI, Operator)• Main target is a Cienaga De Oro formation draped over

a basement high

• Analogue fields at Cicuco, Boquete and El Dificil

• Advancing La Belleza discovery with civil works and long-lead items related to facilities

• Tested 2,696 bopd and 11.8 MMcf/d of gas (4,663 boe/d combined)

• 43 API crude, selling at Brent less $5/Bbl

Source: IHS Data

La Belleza

El Dificil FieldDiscovered: 1943*Cum Production = 12 MMBO, 352 BCF

Cicuco FieldDiscovered: 1956*Cum Production = 48 MMBO, 194 BCF

VIM-1

La Creciente

Boquete FieldDiscovered: 1961*Cum Production = 18.5 MMBO, 41 BCF

Gas fields

Oil fields

Gas pipeline

Oil Pipeline

River

Basilea-1

Planadas-1

La Belleza-1

Basilea-1

Planadas-1

• Completing civil works on two new prospects, Basilea and Planadas as follow-up to the successful exploration discovery La Belleza-1o Drilling program commenced

Note: Distances are approximate and from bottom hole location to bottom hole location.


EXPANDING LLANOS INVENTORY

CPO-11 (50% WI, Operator)• Additional leads and prospects being evaluated

• Shallow drilling targets testing stratigraphic prospects

LLA-94 (50% WI, Operator)

• Multiple play types identified on 3D seismic data

• Short turnaround time to drill ready due to existing data

• Humea exploration well to be drilled in 2H 2021

LLA-134 (100% WI, Operator)

• Targeting stratigraphic plays in the same reservoirs as LLA-34

Rubiales

Cabrestero

CPO-11

LLA-34

LLA-32

LLA-94

Apply key learnings from adjacent areas (Cabrestero and LLA-34)

LLA-134


BORANDA & VMM-46

Boranda (50% WI, Operator)

• Exploration discovery at Boranda-1

• Testing has begun on Boranda Sur o In the process of testing multiple formations

• Testing has started at the Boranda Centro-1 appraisal location

• Producing at rate of ~600 bopd

• Drilling 1-2 appraisal wells

VMM-46 (100% WI, Operator)

• Acquired in Q4 2019

• Acquire 3D seismic on the block

Boranda

VMM-46

Boranda-1

Boranda Centro-1

Boranda Sur-2

Boranda-1Boranda Centro-1

Boranda Sur-2

Boranda

Note: Distances are approximate and from bottom hole location to bottom hole location.


FORTUNA

Fortuna (100% WI, Operator)

• Acquired in Q4 2018

• No drilling since 2012

• Target conventional oil prospects in Lisama and La Luna Formations

• Acquired 3D seismic in 2019

• 2021 Plan: Drill 2 horizontal appraisal wells

• Drilled Cayena-1 exploration well into Galembo formation which has produced 74,700 bbls over 170 producing days

• Next steps:o Increase contact area with multi lateral or extended reach

technologyo Increase simulation capabilitieso Target low cost per foot of horizontal

Fortuna

Boranda

Midas (Acordianero)

VMM-46

Cayena-1


COLOMBIA - CURRENT LAND BASE

Source: Parex Resources – August 2021

# Block Working Interest Gross Acres(1)

1 VIM-1 50% 139,575

2 VIM-43 100% 90,457

3 Fortuna(2) 100% 26,205

4 Boranda(2) 50% 43,367

5 De Mares(2) 50% 174,387

6 Aguas Blancas(2) 50% 13,386

7 VMM-9 100% 152,412

8 VMM-46 100% 111,026

9 Capachos(2) 50% 64,073

10 VSM-25(2) 100% 68,221

11 VSM-36 100% 148,263

12 LLA-16 100% 10,057

13 Los Ocarros 100% 30,562

14 LLA-26 100% 93,376

15 LLA-30 100% 1,451

16 LLA-32 87.5% 23,757

17 LLA-34 (non-operated block) 55% 63,528

18 LLA-40 100% 4,072

19 LLA-122 50% 188,298

20 LLA-134 100% 147,937

21 Merecure(2) 35% 141,527

22 Cabrestero 100% 9,212

23 CPO-11(2) 50% 489,617

24 LLA-94(2) 50% 89,175

1) Exploration properties deemed non-commercial will be relinquished in due course. Accordingly, the acreage described above may decrease as lands are relinquished

2) Lands are subject to farm-in agreement earning terms and/or regulatory approval

Cartagena

Covenas

LOWER MAGDALENA

MIDDLE MAGDALENA

UPPERMAGDALENA

ODL Pipeline

LLANOS BASIN


APPENDIX - INDUSTRY LEADING PERFORMANCE METRICS

2018 2019 2020

Production growth % 25 19 -12

2P Reserves growth % 14 7 -2

3-Year TSR % 61 43 -4

ROACE(1) % 45 31 10

CROIC(2) % 31 28 13

EBITDA(3) US$ MM 641 663 309

Net income (loss) per share – basic $ 2.59 2.24 0.72

Cash flow per share – basic $ 2.58 3.90 2.15

Free cash flow US$ MM 98 362 156

Free cash flow yield(4) % 4 16 9

Liquidity

Cash US$ MM 463 397 331

Undrawn credit facility (no debt) US$ MM 200 200 200

Basic Shares outstanding Thousands 155,014 143,295 130,8731) Return on average capital employed (ROACE) , a non-GAAP measure, is calculated as net income (loss)/(average (net debt + shareholders’ equity)) 2) Cash return on invested capital (CROIC) , a non-GAAP measure, is calculated as EBITDA divided by average carrying value of exploration and evaluation assets and property, plant and equipment assets, excluding accumulated DD&A3) EBITDA is a non-GAAP measure calculated as net income (loss) + interest + taxes + DD&A + impairment 4) Free cash flow yield is calculated as (funds flow from operations – capital expenditures)/Market capitalization (converted in USD)


APPENDIX – SUMMARY OF QUARTERLY RESULTS(1)

(4) EBITDA is defined as net income (loss) + interest + taxes + DDA + Impairment (5) Net Debt is defined as Bank Debt - Working Capital

(Unaudited Results) 2021 2020 2019 2018

Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1

Operating

Production (thousands of boe/d) 43.9 46.8 46.5 46.6 44.3 40.9 54.3 52.7 54.2 53.1 52.3 51.2 44.4 49.3 45.0 42.6 40.6

Brent Price ($/bbl) 69 61 43 45 43 33 51 64 63 62 69 64 72 68 76 75 67

Average realized prices, prior to hedging ($/boe) 60 53 33 37 34 19 39 55 53 54 60 52 59 55 62 62 56

Royalties ($/boe) 9 6 3 3 3 2 5 7 7 7 8 6 8 8 9 8 7

Opex ($/boe) 7 6 5 5 5 5 5 6 6 6 6 6 6 6 5 6 5

Transportation ($/boe)(2) 3 3 3 4 3 2 4 4 4 5 5 4 4 4 3 3 4

Operating Netback ($/boe) 41 37 21 25 23 10 24 37 36 36 41 36 41 38 44 45 39

Funds Flow Netback ($/boe)(3) 32 30 18 19 20 10 21 30 28 30 32 29 24 31 37 (2) 28

Financial(millions of USD, except per share amounts)

Funds flow from operations(3)

132 125 297 82 79 39 97 570 143 143 151 134 401 154 151 (8) 101

Net income (loss) 92 47 99 56 28 19 (4) 328 87 57 102 82 403 54 89 189 72

EBITDA(4)

159 140 309 76 87 15 132 663 162 171 184 148 640 194 173 153 123

Cash and cash equivalents 371 370 331 331 353 334 397 397 397 350 318 433 463 463 361 323 295

Working Capital 352 342 320 320 371 339 330 344 344 280 240 207 219 219 143 66 206

Net Debt (Surplus)(5) (352) (342) (320) (320) (371) (339) (330) (344) (344) (280) (240) (207) (219) (219) (143) (66) (206)

Capital Expenditures 45 40 141 47 18 5 71 208 58 49 49 53 302 78 67 101 58

Bank Credit Facility 200 200 200 200 200 200 200 200 200 200 200 200 200 200 100 100 100

Weighted average shares outstanding 127 130 138 134 138 140 142 146 143 144 147 152 155 155 155 156 155

Trading Statistics (CAD) – PXT:CC(based on intra-day trading)

Share Price

High 24.11 24.33 25.11 19.39 19.37 18.11 25.11 24.39 24.39 23.18 23.51 21.98 26.78 22.18 26.78 25.70 19.87

Low 19.08 17.34 9.12 12.05 13.90 10.83 9.12 15.37 17.59 18.77 19.85 15.37 13.62 13.62 18.25 17.52 16.82

Close (end of period) 20.70 22.41 17.52 17.52 14.03 16.36 11.90 24.15 24.15 20.30 21.01 20.92 16.35 16.35 21.95 24.82 18.12

Average daily volume (thousands) 882 1,010 1,156 1,182 866 1,085 1,617 1,125 1,115 1,019 1,147 1,221 1,115 1,112 1,332 1,034 983

(1) All values are rounded up or down to the nearest dollar figure.(2) 2017 transportation expense on a gross dollar and per boe basis were restated as a result of the Company adopting IFRS 15.

(3) In Q2 2019, Parex changed the way it calculates and presents FFO. For further details refer to the “Non-GAAP terms” on page 22. Comparative periods have also been adjusted for this change. For the three and six months ended June 30, 2018, FFO includes a $137.5 million ($0.88 per share basic) charge for a voluntary tax restructuring.


How to reach us

This presentation is provided for informational purposes only as of October 14, 2021, is not completeand may 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.This presentation does not take into account the particular investment objectives or financialcircumstances of any specific person who may receive it and does not constitute an offer to sell or asolicitation of an offer to buy any security in Canada, the United States or any other jurisdiction. Thecontents of this presentation have not been approved or disapproved by any securities commission orregulatory authority in Canada, the United Sates or any other jurisdiction, and Parex expressly disclaimsany duty on Parex to make disclosure or any filings with any securities commission or regulatoryauthority, beyond that 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; exploration prospects; the Company's exploration schedule; theCompany's drilling plans and production capability/potential; anticipated drilling locations, including theCompany's delineation and drilling plans; the Company's future plans for its business, including financial

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


ADVISORIES

outlook; the Company’s ESG initiatives and the benefits to be derived therefrom; and activities to be undertaken in various areas. Statements relating to "reserves" or "resources" are forward-lookingstatements, as they involve the implied assessment, based on estimates and assumptions that the reserves and resources described exist in the quantities predicted or estimated and can be profitably producedin 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, 4, 5, 6, 8, 17, 19 and 23. Such financial outlook has been prepared by Parex' management to provide anoutlook of the Company'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 thecosts and expenditures 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 bepaid for the 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 assurancethat such operating 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 resultsof operations 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 andits management 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, 2020 reserves set forth in this presentation have been prepared by GLJ Petroleum Consultants Ltd. ("GLJ") as of December 31, 2020 with a preparation date of February4, 2021 (the "GLJ 2019 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, 2021. The estimates of Parex' December 31, 2019 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2019with a preparation date of February 6, 2020 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2020. The estimates of Parex' December 31, 2018 reservesset forth in this presentation have been prepared by GLJ as of December 31, 2018 with a preparation date of February 7, 2019 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices andcosts 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, 2017 with a preparation date of February 2, 2018in 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 reserves set forth in this presentation have beenprepared 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 and costs as at January 1, 2017. Theestimates 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, 2016 in accordance with NI 51-101and the COGEH and using GLJ's forecast prices and costs as at January 1, 2016.

• “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.

• "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.


ADVISORIES

• 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, replacementratio, and recycle ratios, 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 andshould not be used 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 notreliable indicators of the 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 uses these 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 theinformation 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 the calculations of such metricsare 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 Reserves life index is calculated by dividing the applicable reserves category by the annualized fourth quarter production.

o Replacement ratio is calculated by dividing the annual reserve additions by the annual production

o Recycle ratio is calculated as FFO per boe divided by F&D or FD&A, as applicable

o Funds Flow from Operations per boe is a non-GAAP measure that includes all cash generated from operating activities and is calculated before changes in non-cash working capital, divided by salesvolumes for the period. In Q2 2019, the Company changed how it presents funds flow provided by (used in) operations to present a more comparable basis to industry presentation.

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

o CAGR is calculated as:

i. (2020 debt adjusted production per share divided by 2016 debt adjusted production per share)1/4 – 1, and

ii. (2020 2P reserves per share divided by 2016 2P reserves per share)1/4 – 1

o Free cash flow yield is calculated as funds flow minus capex divided by market capitalization (converted in USD)

o Return on average capital employed (ROACE), a non-GAAP measure, is calculated as net income (loss)/(average (net debt + shareholders’ equity))

o Cash return on invested capital calculated (CROIC), a non-GAAP measure, is calculated as EBITDA divided by average carrying value of exploration and evaluation assets and property, plant andequipment assets, excluding accumulated DD&A

• "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.


ADVISORIES

• All of Parex’ crude oil reserves disclosed herein are located in Colombia. The Company has light, medium and heavy crude oil, natural gas liquids and conventional natural gas product types. The recovery andreserve estimates of reserves 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, the estimates 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 costsand after the deduction of royalties, development costs, production costs, well abandonment costs and estimated future capital expenditures for wells to which reserves have been assigned.

• 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 include operatingnetbacks, cash netbacks, funds flow netbacks, funds flow per share, free cashflow, funds flow from operations netback and funds flow from operations, return on average capital employed, cash return oninvested capital calculated and EBITDA. Management believes that these financial measures are useful supplemental information to analyze operating performance and provide an indication of the resultsgenerated by the Company’s principal business activities. Investors should be cautioned that these measures should not be construed as an alternative to net income or other measures of financialperformance as determined in accordance with “Oil and Gas Information” and IFRS. Parex’s method of calculating these measures may differ from other companies, and accordingly, they may not becomparable to similar measures used by other companies. Please see the Company’s most recent Management’s Discussion and Analysis, which is available at www.sedar.com for additional information aboutthese financial measures.

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