CALGARY, Alberta, Dec. 05, 2025 (GLOBE NEWSWIRE) -- Parex Resources Inc. ("Parex" or the "Company") (TSX: PXT) and its strategic partner Ecopetrol S.A. ("Ecopetrol"), are pleased to announce an update on their Llanos Foothills exploration program, where a full strategic alliance has effectively been achieved. Additionally, the Company provides an update on its corporate production and announces plans to release its 2026 guidance on January 19, 2026.
Key Highlights
- Finalized Niscota agreement, strengthening Llanos Foothills position and securing the Floreña Huron exploration prospect.
- Advanced the Farallones exploration prospect in the Llanos Foothills, with regulatory approvals secured and initial work underway.
- Continued to sustain strong production levels in November 2025, with QTD Q4 2025 average production currently 49,700 boe/d- 1- -
"Parex has long maintained a Colombia-focused gas strategy, and today's announcement underscores our commitment to expanding meaningful gas development in the country. With effectively all Foothills agreements and regulatory approvals complete, Parex and Ecopetrol have laid the foundation for a 50/50 strategic partnership across the Foothills basin - stretching from Gibraltar in the north, to Farallones in the south - with Parex as operator," commented Imad Mohsen, President & Chief Executive Officer.
"Through this partnership, we will leverage our shared Colombian expertise, apply modern technology, and attract additional foreign investment for years to come, with the collective goal of finding resources and delivering new volumes of natural gas to the domestic market. After more than three years of public-private collaboration, I am excited to see the final piece of the puzzle come together, and confident that our joint efforts will greatly benefit Colombia and all our stakeholders."
"Additionally, I am pleased to share that Parex continues to see strong operational performance across our portfolio. Our fourth-quarter execution is on track, and I am looking forward to 2026 with established exploration and production momentum."
Llanos Foothills - High-Impact Exploration
In line with ongoing plans to explore the Llanos Foothills trend for new sources of Colombian resources, Parex and Ecopetrol have further reinforced their joint position in a basin recognized for its world-class exploration potential, collaborating to strengthen Colombia's future energy position and sustainability.
Niscota Block
- Ecopetrol has confirmed that they have received approval from the regulator for the extension of the Piedemonte Convenio into a portion of the Niscota block, with all necessary regulatory approvals to drill the Floreña Huron exploration well.
- Per previously announced agreements- 2- , Parex has acquired a 50% participation share on the future production of the extended area of the Piedemonte Convenio, in exchange for agreeing to drill on a 100% capital basis the Floreña Huron exploration well, which will be drilled to the north of the producing Floreña field.
- In its 2026 program, Parex plans to commence initial and civil works to spud the Floreña Huron exploration well.
Farallones Block
- The Farallones exploration prospect is progressing, with all regulatory approvals received and initial works underway.
- As previously announced- 3- , Parex agreed with Ecopetrol to drill the Farallones exploration well on a 100% capital basis.
- In its 2026 program, Parex plans to commence civil works to spud the Farallones exploration well.
Production Update
Average production was 49,300 boe/d(4) in October 2025 and was sustained in November 2025 at 50,300 boe/d- 5- . Production was driven primarily by strong new wells at LLA-32 and LLA-74, which came online with high initial rates and are now stabilizing.
With minimal expected production adds over the remainder of the year, and YTD 2025 average production of 44,550 boe/d- 6- , Parex expects to achieve approximately the midpoint of its FY 2025 annual average production guidance of 45,000 boe/d (range: 43,000 to 47,000 boe/d).
2026 Guidance
Parex plans to release its 2026 guidance after markets close on January 19, 2026.
Footnotes
(1) Estimated average production for October 1, 2025 to December 3, 2025; light & medium crude oil: ~11,901 bbl/d, heavy crude oil: ~36,214 bbl/d, conventional natural gas: ~9,512 mcf/d; rounded for presentation purposes.
(2) See April 11, 2024 news release.
(3) See December 11, 2024 news release.
(4) Estimated average production for October 1, 2025 to October 31, 2025; light & medium crude oil: ~11,805 bbl/d, heavy crude oil: ~35,922 bbl/d, conventional natural gas: ~9,435 mcf/d; rounded for presentation purposes.
(5) Estimated average production for November 1, 2025 to November 31, 2025; light & medium crude oil: ~12,045 bbl/d, heavy crude oil: ~36,651 bbl/d, conventional natural gas: ~9,627 mcf/d; rounded for presentation purposes.
(6) Estimated average production for January 1, 2025 to December 3, 2025; light & medium crude oil: ~10,668 bbl/d, heavy crude oil: ~32,461 bbl/d, conventional natural gas: ~8,526 mcf/d; rounded for presentation purposes.
About Parex Resources Inc.
Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable, conventional production. The Company's corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.
For more information, please contact:
Mike Kruchten
Senior Vice President, Capital Markets & Corporate Planning
Parex Resources Inc.
403-517-1733
investor.relations@parexresources.com
Steven Eirich
Senior Investor Relations & Communications Advisor
Parex Resources Inc.
587-293-3286
investor.relations@parexresources.com
NOT FOR DISTRIBUTION OR DISSEMINATION IN THE UNITED STATES
Advisory on Forward-Looking Statements
Certain information regarding Parex set forth in this press release contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "prospective", "progressing", "project", "intend", "believe", "should", "anticipate", "estimate", "forecast", "guidance", "budget" or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.
In particular, forward-looking statements contained in this press release include, but are not limited to, statements with respect to the Company's focus, plans, priorities and strategies and the benefits to be derived from such plans, priorities and strategies; the expected benefits of the full strategic alliance with Ecopetrol; that Parex and Ecopetrol will collaborate to strengthen Colombia's future energy position and sustainability; that joint efforts by Parex and Ecopetrol will benefit Colombia and their stakeholders; expectations on fourth-quarter execution and exploration and production momentum for 2026; expectations regarding regulatory approvals to drill the Floreña Huron exploration well; plans to commence initial and civil works to spud the Floreña Huron exploration well; expectations regarding regulatory approvals related to the Farallones exploration prospect; plans to commence civil works to spud the Farallones exploration well; expectations on achieving annual average production guidance and estimates of such average production over the remainder of the year; and plans to release its 2026 guidance in January, 2026. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex's actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex.
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; prolonged volatility in commodity prices; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced in Canada and Colombia; determinations by the Organization of Petroleum Exporting Countries (OPEC) and other countries as to production levels; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities in Canada and Colombia; the risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; changes to pipeline capacity; ability to access sufficient capital from internal and external sources; failure of counterparties to perform under contracts; the risk that Brent oil prices may be lower than anticipated; the risk that Parex's evaluation of its existing portfolio of development and exploration opportunities may not be consistent with its expectations; the risk that Parex may not realize the expected benefits from the strategic alliance with Ecopetrol; operational risks related to fourth-quarter execution and plans to commence civil works for exploration wells; the risk that necessary governmental, regulatory and/or other approvals, as required, may not be granted in connection with the exploration wells; and risk that Parex's FY 2025 annual average production guidance is lower than anticipated. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could affect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR+ website (www.sedarplus.ca).
Although the forward-looking statements contained in this document are based upon assumptions which Parex management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: current and anticipated commodity prices 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 increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory and community approvals; royalty rates; future operating costs; uninterrupted access to areas of Parex's operations and infrastructure; recoverability of reserves and future production 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's conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop its oil and gas properties in the manner currently contemplated; that Parex's evaluation of its existing portfolio of development and exploration opportunities is consistent with its expectations; current or, where applicable, proposed industry conditions, laws, regulations and regulatory approvals will continue in effect or as anticipated as described herein; that the estimates of Parex's production and reserves volumes and the assumptions related thereto (including commodity 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; that Parex's internal security protocols and engagements with its stakeholders and the Colombian national government will be successful; that Parex will achieve the anticipated benefits from the strategic alliance with Ecopetrol; receipt of all required regulatory approvals in respect of the exploration wells; that Parex's anticipated FY 2025 annual average production is consistent with expectations; and other matters.
Management has included the above summary of assumptions and risks related to forward-looking statements provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.
Oil & Gas Matters Advisory
The term "boe" means a barrel of oil equivalent on the basis of 6 thousand cubic feet ("Mcf") of natural gas to 1 bbl. Boe may be misleading, particularly if used in isolation. A boe conversion ratio of 6 Mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 Mcf: 1 bbl, utilizing a conversion ratio at 6 Mcf: 1 bbl may be misleading as an indication of value.
Abbreviations
The following abbreviations used in this press release have the meanings set forth below:
| bbl | one barrel |
| boe | barrels of oil equivalent of natural gas; one barrel of oil or natural gas liquids for six thousand cubic feet of natural gas |
| boe/d | barrels of oil equivalent of natural gas per day |
| Mcf | thousand cubic feet |
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