Slide 1: Sustained Performance, Expanding Potential
Sustained Performance Expanding Potential www.parexresources.com | TSX:PXT CORPORATE PRESENTATION | April 2016
Slide 2: Demonstrating Portfolio Flexibility
Demonstrating Portfolio Flexibility Operating Results 2014 2015 Production (bopd) Full Year 22,526 27,434 Capital Expenditures (million) US $297 US $126 Exploration Drilling (# of prospects) 16 5 Discoveries 7 3 Appraisal (# wells) 4 4 Development Drilling (# wells) 18 0 Reserves 2P (Dec. 31) (1) 68
Slide 3: 2016 Guidance Ability to Adjust Capex
2016 Guidance Ability to Adjust Capex : Scenario 1: November 2, 2015(1) Assuming Brent oil price averages ~ $50/bbl in 2016, we are targeting full year: $165 MM cash flow = $165 MM Capex $15/bbl cash netback 30,200 bopd production (10% y-y growth) Scenario 2: January 2016 Flexibility to adjust capit
Slide 4: Consistent Performance
Consistent Performance 32 Average Daily Production (000 bopd) 28 24 20 16 12 8 4 0 2011 2012 2013 2014 2015 2016E ANNUAL Leveraging Sustained Building Cash Flow Exploration Success Sustainability Building The Runway Performance & Production Portfolio Flexibility THEMES Expanding Potential 15 consecu
Slide 5: Parex Cash Netbacks
Parex Cash Netbacks Cash Netback Finance & Other Tax G&A Opex Transportation Royalties Brent Price US $/BBL 125 2016 PRICE SENSITIVITY 100 Realized Price (US $/bbl) 75 Brent $ Estimates $55 50 $45 Q4 Brent $40 $44.70/bbl $35 25 $45 $46 $39 $21 $14 $21 $5 $12 $6 $10 $14 $22 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 6: Annual Finding, Development & Acquisition Costs
Annual Finding, Development & Acquisition Costs* Total Company 2015 2015 3 Year 1P 2P 2P F&D $/bbl $2.00 $0.88 $9.35 FD&A $/bbl $2.00 $3.57 $10.86 Recycle Ratio 1P 2P 2P FD&A $/bbl 6.2x 3.5x 2.6x $35 $30 2P FD&A ($/bbl) $25 2015 FD&A Drivers: $20 1. New discoveries 2. Reservoir performance $15 3. FX
Slide 7: Portfolio Supports the Path to Growth
Portfolio Supports the Path to Growth Track record of progressing reserves* from 3P to cash flow Proved +Probable Proved + Probable Proved Annual 2P Reserves + Possible (mmboe) (mmboe) Production Life Index based on annualized (mmboe) (mmbbls) Q4 Production 31-Dec-09 - - - - - 31-Dec -10 10.4 5.8 1
Slide 8: Southern Llanos: Foundation for Growth
Southern Llanos: Foundation for Growth Cabrestero (100% WI, Operator) FAULTS GLJ 3P (YE 2015) Akira: swing producer 2016 Exploration NFuture Exploration Carmentea 2016: 1-2 exploration wells Calona LLA -34 (55% WI, Non-operated) LLA32 Kananaskis Chachalaca Max Large discoveries at Tua & Tigana LLA34
Slide 9: Tigana Guadalupe in Early Appraisal Stage
Tigana Guadalupe in Early Appraisal Stage With no new wells, Tigana has been producing flat for 15 months CORPORATE PRESENTATION | April 2016 9
Slide 10: Block LLA-34: 2015 Discoveries and Extending Fields
Block LLA-34*: 2015 Discoveries and Extending Fields Chachalaca (2015) Tilo - 2014 Tilo-2 (2015) Tarotaro - 2013 Tigana - 2013 Opportunities to grow --- 3P GLJ Dec 31, 2015 the Tigana Guadalupe Tua - 2012 2P GLJ Dec 31, 2015 Prospects reserves beyond the current GLJ 3P Aruco - 2013 Jacana (2015) 0 k
Slide 11: IP Rates LLA-34: Production Flexibility
IP Rates LLA-34: Production Flexibility Mean prod’n rate = 1,000 bopd 26 zones tested The mean rate of 1,000 bopd is skewed to the low-side because the higher producing rate wells are not produced at capability CORPORATE PRESENTATION | April 2016 11
Slide 12: Magdalena Basin: Next Growth Platform
Magdalena Basin: Next Growth Platform VIM-1 Growth Opportunities: Aguas Blancas Light oil development farm-in on *LOWER MAGDALENA No. Fields: 43 Ecopetrol EUR: 547 mmboe Prod.: 15 mboe/d VIM-1 Acquire 3D seismic Catatumbo *MIDDLE MAGDALENA VMM-9 No. Fields: 102 EUR: 3,919 mmboe Environmental Impact
Slide 13: Aguas Blancas: Undeveloped Discovery
Aguas Blancas: Undeveloped Discovery Discovery Well: Aguas Blancas (1962, Ecopetrol) 44 mmbo Field Information Cumulative production: 1 MMBO (28 – 31 API) Solution gas (reservoir pressure ~3,000 psi) Depth: 4,000 – 7,000 feet Main reservoir: Mugrosa C; net oil pay up to 150 feet Number of wells: 5 (
Slide 14: La Cira-Infantas: Production History
La Cira-Infantas: Production History Average Annual Production 65 Sept 2015 60 Target Production 55 50,000 bpd 50 Production (000 bpd) 45 40 35 30 Recent water-flood response 25 20 15 10 5 - 1925 1935 1945 1955 1965 1975 1985 1995 2005 2015 Aguas Blancas is ~2 km south in the same reservoir formatio
Slide 15: Aguas Blancas: Phase 1 Appraisal Program
Aguas Blancas: Phase 1 Appraisal Program Current Status (1)(2) Target Areas 1B (1)(2) Drill up to 4 wells from existing pads (pending Operator transfer) Expand 2P reserves area by drilling Reserves Areas appraisal wells from new pads Prospective Resource Area Implement water-flood pilot Reserves Are
Slide 16: PetroAndina: Other side of the 'other' Rio Colorado
PetroAndina:Other side of the ‘other’ Rio Colorado Neuquén Basin, Argentina • Greenfield development 2003-2009 Rio Colorado • +200 wells/year drilled • Reached 30,000 BOPD plateau (gross) CORPORATE PRESENTATION | April 2016 16
Slide 17: Summary: Excel at What We Do
Summary: Excel at What We Do Core Competencies 1. Identify and acquire large prospective resources 2. Engage stakeholder 3. Focus on being a low cost operator Rumba Location CORPORATE PRESENTATION | April 2016 17
Slide 18: Appendix – Block Summary
Appendix – Block Summary # Block Operated/Non-Operated Working Interest Partners Gross Acres(1) Basin 1 LLA-10 Operated 50% Gran Tierra 189,544 Llanos 2 LLA-16 Operated 100% N/A 11,736 Llanos 3 LLA-20 Operated 100% N/A 2,891 Llanos 4 LLA-24 Operated 100% N/A 147,100 Llanos 5 LLA-26 Operated 100% N/A
Slide 19: Appendix – Summary of Quarterly Results
Appendix – Summary of Quarterly Results (Unaudited Results) 2015 2014 2013 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 OPERATING Production (thousands of bopd) 27.4 28.6 27.4 27.0 26.7 22.5 26.5 25.2 19.9 18.4 15.9 17.3 16.2 15.5 14.4 Average realized prices, prior to hedging 47 37 45 56 49 88 60 9
Slide 20: Legal Advisory How to Reach Us
Legal Advisory How to Reach Us Certain statements in this document are “forward-looking statements”. Forward-looking statements are frequently characterized by words such as “prospective”, “plan”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “forecast”, or other similar words,