Slide 1: Sustained Performance, Expanding Potential
Sustained Performance Expanding Potential www.parexresources.com | TSX:PXT Corporate Presentation | June 2016
Slide 2: Demonstrating Portfolio Flexibility
Demonstrating Portfolio Flexibility Operating Results 2015 2016FY Production (bopd) Full Year 27,434 29,000 Capital Expenditures(1) (million) US $126 US $80-100 Exploration Drilling (# of prospects) 5 9 Discoveries 3 - Appraisal (# wells) 4 2 Development Drilling (# wells) 0 2 Reserves 2P (Dec. 31)
Slide 3: 2016 Guidance: Ability to Adjust Capex
2016 Guidance: Ability to Adjust Capex Scenario 1: November 2, 2015 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 capital b
Slide 4: 2016 Drilling Program
2016 Drilling Program Basin Block Working Interest Play Type Well Type Llanos Cabrestero 100% Stratigraphic Exploration Llanos Cabrestero 100% Stratigraphic Exploration Llanos Cerrero 100% Stratigraphic Exploration Llanos Cebucan 100% Structure Exploration Llanos LLA-32 70% Stratigraphic Exploration
Slide 5: Consistent Performance: Average Daily Production
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 2016 First
Slide 6: Parex Cash Netbacks
Parex Cash Netbacks Cash Netback Finance & Other Tax G&A Opex Transportation Royalties Brent Price US $/BBL 125 2016 TARGET NETBACKS 100 Realized Price (US $/bbl) 75 Brent $ Estimates $55 50 $45 Q1 Brent $35/bbl $40 $35 25 $45 $46 $39 $21 $14 $21 $5 $12 $5 $6 $10 $14 $22 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
Slide 7: Annual Finding, Development & Acquisition Costs
Annual Finding, Development & Acquisition Costs* Total Company 2015 3 Year PDP 1P 2P 2P F&D $/bbl $8.62 $2.00 $0.88 $9.35 FD&A $/bbl $8.62 $2.00 $3.57 $10.86 Recycle Ratio PDP 1P 2P 2P FD&A $/bbl 1.4x 6.2x 3.5x 2.6x $35 $30 2015 FD&A Drivers: 1. New discoveries 2P FD&A ($/bbl) $25 2. Reservoir perfo
Slide 8: 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 9: 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 10: Tigana Guadalupe in Early Appraisal Stage
Tigana Guadalupe in Early Appraisal Stage With no new wells, Tigana has been producing flat for 16 months Corporate Presentation | June 2016 10
Slide 11: 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 12: IP Rates LLA-34: Production Flexibility
IP Rates LLA-34: Production Flexibility Mean prod’n rate = 1,000 bopd 26 zones tested BOPD 100 1,000 2,000 3,000 10,000 The mean rate of 1,000 bopd is skewed to the low-side because the higher producing rate wells are not produced at maximum capability Corporate Presentation | June 2016 12
Slide 13: Magdalena Basin: Next Growth Platform
Magdalena Basin: Next Growth Platform Growth Opportunities: VIM-1 Aguas Blancas Light oil development farm-in on Ecopetrol De Mares Farm-in on Ecopetrol Coyote-1: re-enter & test Morpho Light oil, tight sand Warehouse for higher oil prices Playon Playon Farm-in on Ecopetrol Boranda-1: 2016 explorati
Slide 14: Middle Magdalena Basin: New Play Concepts
Middle Magdalena Basin: New Play Concepts Boranda-1 De Mares & Playon (50% WI, Operator) Update Map (w/ DM & Playon) 1. Ecopetrol Farm-in Playon Coyote-1: Re-enter & test Boranda-1: exploration prospect Paleo High VMM-9 & VMM-11 (100% WI, Operator) De Mares Block Glauca-1 Niagara-1 AGUAS BLANCAS Coy
Slide 15: 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 16: Aguas Blancas: Phase 1 Appraisal Program
Aguas Blancas: Phase 1 Appraisal Program Current Status(1)(2) Phase 1(1)(2) Drill up to 4 wells from existing pads (pending Operator transfer) Expand 2P reserves area by drilling appraisal wells from 2015 Reserves new pads Areas Implement water-flood Prospective Resource pilot Area Evaluate recovery
Slide 17: Across the Rio Colorado…
Across the Rio Colorado… Rio Colorado Fault Lines AB-4 Block Boundary AB-2 AB-5 Corporate Presentation | June 2016 17
Slide 18: 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 | June 2016 18
Slide 19: 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 20: Appendix – Summary of Quarterly Results
Appendix – Summary of Quarterly Results (Unaudited Results) 2016 2015 2014 Q1 FY Q4 Q3 Q2 Q1 FY Q4 Q3 Q2 Q1 OPERATING Production (thousands of bopd) 28.9 27.4 28.6 27.4 27.0 26.7 22.5 26.5 25.2 19.9 18.4 Average realized prices, prior to hedging 27 47 37 45 56 49 88 60 94 105 103 Brent Price ($/bbl)
Slide 21: Colombia - Current Land Base
Colombia - Current Land Base Corporate Presentation | June 2016 21
Slide 22: 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,