Slide 1: Sustained Performance, Expanding Potential
Sustained Performance Expanding Potential www.parexresources.com | TSX:PXT CORPORATE PRESENTATION | March 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 none Reserves 2P (Dec. 31) (1)
Slide 3: 2016 Guidance: Flexibility to Adjust
2016 Guidance: Flexibility to Adjust Scenario 1: November 2, 2015(1) Assuming Brent oil price averages ~ $50/bbl in 2016, we are targeting full year: $165MM cash flow $15/bbl cash netback $165MM Capex 30,200 bopd production (10% y-y growth) Scenario 2: January 2016 Flexibility to adjust capital budg
Slide 4: Track Record of Consistent Growth
Track Record of Consistent Growth Production Growth Debt Adjusted 30,000 200 25,000 160 Production (bopd) Production per share 20,000 120 15,000 80 10,000 40 5,000 - 0 2010 2011 2012 2013 2014 2015 Production (bopd) Production per share LHS RHS Reserve Growth Debt Adjusted 140 1.00 120 Reserves (MMb
Slide 5: Progressively Larger Discoveries
Progressively Larger Discoveries Median Llanos Kona Las Maracas Akira / Tigana 100 acres 300 acres 300 acres 500 +1000 acres 2010 2012 2014 Tigana/Jacana Focus Capachos 2016/17 Aguas Blancas 3000->5,000 acres CORPORATE PRESENTATION | March 2016 5
Slide 6: 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 Building Cash Flow & Exploration Success Sustainability Building The Runway Leveraging Portfolio Sustained Performance Production Flexibility Expanding Potential THEMES 15 consecu
Slide 7: 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 50 $45 Q4 Brent $40 $44.7/bbl $35 25 $45 $46 $39 $21 $14 $21 $5 $12 $4 $8 $12 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Case 1 Cas
Slide 8: Annual Finding, Development & Acquisition Costs
Annual Finding, Development & Acquisition Costs* Profitability = Cash Netbacks > F&D $45 Total Company 2015 2015 3 Year 1P 2P 2P $40 F&D $/bbl $2.00 $0.88 $9.35 FD&A $/bbl $2.00 $3.57 $10.86 $35 Recycle Ratio 1P 2P F&D $/bbl 6.2x 14.0x 3.1x $30 F&DA $/bbl 6.2x 3.5x 2.6x 2P FD&A ($/bbl) $25 2015 Driv
Slide 9: 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 10: Rumba Reserves – Year End 2015
Rumba Reserves – Year End 2015(1) CI = 10’ Bazar 2 GLJ 2P EUR = 5.1 MMBO(2)(3) GLJ 3P EUR = 6.8 MMBO(2)(3) Production = 4000 bopd (capable of 5000 bopd) Rumba 2 Capital Invested = $43MM (plus $9MM FDC) Rumba 4 Rumba 1 Six months of continuous activity starting in March 2015 yields an effectively ful
Slide 11: Southern Llanos: Appraising New Discoveries
Southern Llanos: Appraising New Discoveries Cabrestero (100% WI, Operator) FAULTS GLJ 3P (YE 2015) Akira – swing producer 2016 Exploration NFuture Exploration Carmentea 2016 exploration well Calona LLA32 Kananaskis LLA 34 (55% WI, Non-operated) LLA34 Chachalaca Tilo Max Large discoveries at Tua & Ti
Slide 12: Capachos Development & Exploration Potential
Capachos Development & Exploration Potential Cano Limon Style Capachos Noreste Capachos Norte Backthrust Este Synthetic Strike Slip Capachos Centro (Dev. #1) Backthrust Oeste Capachos Sur (Dev. #2) Plan to drill 2 new development wells Target Guadalupe Formation - ~36 API oil 6 undrilled prospective
Slide 13: Magdalena Basin: Next Growth Platform
Magdalena Basin: Next Growth Platform VIM-1 Growth Options: 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 Assess
Slide 14: Aguas Blancas: Field Background
Aguas Blancas: Field Background 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 (1962
Slide 15: Aguas Blancas: Phase 1 Development
Aguas Blancas: Phase 1 Development Current Status (1)(2) Target Areas 1B (1)(2) Construct new pads. Plan to expand reserve area by drilling additional wells. Water-flood pilot. Reserves Areas Continue reservoir Prospective Resource Area uncertainty mitigation plan and evaluation of increased Recover
Slide 16: 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 17: Wrap-Up: What We Do
Wrap-Up: 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 | March 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,