{"id":4809,"date":"2022-02-03T15:54:00","date_gmt":"2022-02-03T23:54:00","guid":{"rendered":"https:\/\/parexresource2.wpenginepowered.com\/press-releases\/parex-resources-announces-increase-to-pdp-and-2p-per-share-reserves-declaration-of-increased-q1-2022-dividend-and-provides-ncib-update\/"},"modified":"2026-05-04T14:09:05","modified_gmt":"2026-05-04T21:09:05","slug":"parex-resources-announces-increase-to-pdp-and-2p-per-share-reserves-declaration-of-increased-q1-2022-dividend-and-provides-ncib-update","status":"publish","type":"press-releases","link":"https:\/\/www.parexresources.com\/es\/comunicados-de-prensa\/parex-resources-announces-increase-to-pdp-and-2p-per-share-reserves-declaration-of-increased-q1-2022-dividend-and-provides-ncib-update\/","title":{"rendered":"Parex Resources Announces Increase to PDP and 2P Per Share Reserves, Declaration of Increased Q1 2022 Dividend, and Provides NCIB Update"},"content":{"rendered":"CALGARY, Alberta, Feb. 03, 2022 (GLOBE NEWSWIRE) — Parex Resources Inc. (\u201cParex\u201d or the \u00abCompany\u00bb) (TSX:PXT) is pleased to announce the results of its annual independent reserves assessment as at December\u00a031, 2021, as well as provide an operational update. The Company also announces the declaration of a first quarter 2022 regular dividend of CAD$0.14 per common share to be paid on March 30, 2022 to shareholders of record on March 15, 2022, representing a 12% increase from the Company’s fourth quarter 2021 regular dividend. Also, in 2022, the Company expects to purchase the maximum allowable common shares pursuant to its normal course issuer bid program (\u201cNCIB\u201d). Parex has purchased the maximum allowable common shares under its NCIBs for the previous three years.<\/p>\n
The financial and operational information contained below is based on the Company\u2019s unaudited estimated results for the year ended December\u00a031, 2021. All currency amounts are in United States dollars, unless otherwise stated.<\/p>\n
2021 Year-End Corporate Reserves Report: Highlights<\/strong><\/p>\n\u201cWith an industry-leading balance sheet, a plan to return meaningful capital to shareholders, and a reserve life index exceeding 10 years, Parex is extremely well-positioned to generate shareholder value in 2022 and over the long term,\u201d commented Imad Mohsen, President and Chief Executive Officer.<\/p>\n
For the year ended December\u00a031, 2021, Parex:<\/p>\n
\n- Added 25.3 million barrels of oil equivalent (\u00abMMboe\u00bb) proved developed producing reserves (\u201cPDP\u201d) and 21.5 MMboe proved plus probable (\u00ab2P\u00bb) reserves, replacing respectively 148% and 125% of total 2021 production (approximately 17.15 MMboe);<\/li>\n
- Increased PDP and 2P reserves per share by 22% and 11%, respectively, with exploration activities complimented by the 2021 NCIB;<\/li>\n
- Added 2P reserves of 7.8 MMboe at Arauca, which is a block that is new to Parex and located in the Northern Llanos basin, as well as added 2P reserves of 4.3 MMboe at Capachos;<\/li>\n
- Realized estimated PDP finding, development & acquisition (\u201cFD&A\u201d) costs of $10.71\/boe, resulting in a 3.4 times PDP FD&A recycle ratio (using estimated Q4 2021 funds flow from operations of $36.76\/boe);<\/li>\n
- Achieved estimated 2P FD&A costs of $18.35\/boe, resulting in a 2.0 times 2P FD&A recycle ratio (using estimated Q4 2021 funds flow from operations of $36.76\/boe);<\/li>\n
- Realized an after tax proved (\u201c1P\u201d) net asset value (\u201cNAV\u201d) per share of C$29.03 and 2P NAV of C$38.51 per share, discounted at 10% and using the GLJ 2021 Report price forecast, and includes estimated December\u00a031, 2021 working capital of $325 million.<\/li>\n<\/ul>\n
This press release contains Forward-Looking Information and references to Non-GAAP and Other Financial Measures.<\/em><\/p>\nSignificant related assumptions and risk factors, and reconciliations are described under the Non-GAAP and Other Financial Measures and Forward-Looking Statements sections of this press release, respectively.<\/em><\/p>\n2021 Year-End Corporate Reserves Report: Discussion of Reserves<\/strong><\/p>\nThe following tables summarize information contained in the independent reserves report prepared by GLJ Ltd. (\u201cGLJ\u201d) dated February\u00a03, 2022 with an effective date of December\u00a031, 2021 (the \u00abGLJ 2021 Report\u00bb), with comparatives to the independent reserves report prepared by GLJ dated February\u00a04, 2021 with an effective date of December\u00a031, 2020 (the \u00abGLJ 2020 Report\u00bb), and the independent reserves report prepared by GLJ dated February\u00a05, 2020 with an effective date of December\u00a031, 2019 (\u00abGLJ 2019 Report\u00bb, and collectively with the GLJ 2021 Report and the GLJ 2020 Report, the \u00abGLJ Reports\u00bb). Each GLJ Report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook (\u00abCOGE Handbook\u00bb) and National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities (\u00abNI 51-101\u00bb). Additional reserve information as required under NI 51-101 will be included in the Company’s Annual Information Form for the 2021 fiscal year which will be filed on SEDAR by March 31, 2022. Consistent with the Company\u2019s reporting currency, all amounts are in United States dollars unless otherwise noted.<\/p>\n
The recovery and reserve estimates provided in this news release 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. In certain of the tables set forth below, the columns may not add due to rounding.<\/p>\n
All December\u00a031, 2021 reserves presented are based on GLJ’s forecast pricing effective January 1, 2022; all December\u00a031, 2020 reserves presented are based on GLJ’s forecast pricing effective January 1, 2021 and all December\u00a031, 2019 reserves presented are based on GLJ’s forecast pricing effective January 1, 2020.<\/p>\n
Parex\u2019s reserves are located in the Llanos and Magdalena basins in the country of Colombia.<\/p>\n
Five-Year Crude Oil Price Forecast \u2013 GLJ Report (January 2021 and 2022)<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | 2021<\/strong><\/td>\n2022<\/strong><\/td>\n2023<\/strong><\/td>\n2024<\/strong><\/td>\n2025<\/strong><\/td>\n2026<\/strong><\/td>\n<\/tr>\n\n| ICE Brent (US$\/bbl) – January 1, 2021<\/td>\n | 50.75<\/td>\n | 55.00<\/td>\n | 58.50<\/td>\n | 61.79<\/td>\n | 62.95<\/td>\n | 64.13<\/td>\n<\/tr>\n | \n| ICE Brent (US$\/bbl) – January 1, 2022<\/td>\n | 70.95(1)<\/sup><\/td>\n| 76.00<\/td>\n | 72.51<\/td>\n | 71.24<\/td>\n | 72.66<\/td>\n | 74.12<\/td>\n<\/tr>\n<\/table>\n (1) Actual 2021 ICE Brent average price.<\/p>\n 2021 Year-End Gross Reserves Volumes<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | Dec. 31<\/strong><\/td>\nChange over
Dec. 31,<\/strong><\/td>\n<\/tr>\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | 2019<\/strong><\/td>\n2020<\/strong><\/td>\n2021<\/strong><\/td>\n<\/tr>\n\nReserve Category<\/strong><\/td>\n| \u00a0<\/td>\n | Mboe<\/strong>(1)<\/strong><\/sup><\/td>\nMboe<\/strong>(1)<\/strong><\/sup><\/td>\nMboe<\/strong>(1)(2)<\/strong><\/sup><\/td>\n2020<\/strong>\u00a0<\/td>\n<\/tr>\n\n| Proved Developed Producing (PDP)<\/td>\n | \u00a0<\/td>\n | 70,946<\/td>\n | 72,373<\/td>\n | 80,559<\/td>\n | 11<\/strong>%<\/strong><\/td>\n<\/tr>\n\n| Proved Developed Non-Producing<\/td>\n | \u00a0<\/td>\n | 6,699<\/td>\n | 15,087<\/td>\n | 9,685<\/td>\n | (36%)<\/td>\n<\/tr>\n | \n| Proved Undeveloped<\/td>\n | \u00a0<\/td>\n | 61,180<\/td>\n | 40,623<\/td>\n | 35,022<\/td>\n | (14%)<\/td>\n<\/tr>\n | \nProved (1P)<\/strong><\/td>\n| \u00a0<\/td>\n | 138,825<\/strong><\/td>\n128,083<\/strong><\/td>\n125,266<\/strong><\/td>\n(2<\/strong>%)<\/strong><\/td>\n<\/tr>\n\n| Probable<\/td>\n | \u00a0<\/td>\n | 59,599<\/td>\n | 66,408<\/td>\n | 73,559<\/td>\n | 11%<\/td>\n<\/tr>\n | \nProved + Probable (2P)<\/strong><\/td>\n| \u00a0<\/td>\n | 198,423<\/strong><\/td>\n194,491<\/strong><\/td>\n198,825<\/strong><\/td>\n2<\/strong>%<\/strong><\/td>\n<\/tr>\n\nPossible(3)<\/sup><\/td>\n| \u00a0<\/td>\n | 62,661<\/td>\n | 85,995<\/td>\n | 88,102<\/td>\n | 2%<\/td>\n<\/tr>\n | \nProved + Probable + Possible (3P)<\/strong><\/td>\n| \u00a0<\/td>\n | 261,085<\/strong><\/td>\n280,486<\/strong><\/td>\n286,927<\/strong><\/td>\n| 2%<\/strong><\/td>\n<\/tr>\n<\/table>\n (1) Mboe is defined as thousand barrels of oil equivalent.
(2) All reserves are presented as Parex working interest before royalties. 2021 net reserves after royalties are: PDP 68,703 Mboe, proved developed non-producing 8,336 Mboe, proved undeveloped 29,727 Mboe, 1P 106,765 Mboe, 2P 165,781 Mboe and 3P 238,441 Mboe.
(3) Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/p>\n 2021 Year-End Gross Reserves Volumes Per Share<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | Dec. 31<\/strong><\/td>\nChange
over Dec.
31, 2019<\/strong><\/td>\nChange
over Dec.
31, 2020<\/strong><\/td>\n<\/tr>\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | 2019<\/strong><\/td>\n2020<\/strong><\/td>\n2021<\/strong>(1)<\/strong><\/sup><\/td>\n<\/tr>\n\n| Year-End Basic Outstanding Shares (000s)<\/td>\n | \u00a0<\/td>\n | 143.3<\/td>\n | 130.9<\/td>\n | 120.3<\/td>\n | (16%)<\/td>\n | (8%)<\/td>\n<\/tr>\n | \n| Proved Developed Producing (PDP) (boe\/share)<\/td>\n | \u00a0<\/td>\n | 0.50<\/td>\n | 0.55<\/td>\n | 0.67<\/td>\n | 34%<\/td>\n | 22%<\/td>\n<\/tr>\n | \nProved (1P)
(boe\/share)<\/td>\n | \u00a0<\/td>\n | 0.97<\/td>\n | 0.98<\/td>\n | 1.04<\/td>\n | 7%<\/td>\n | 6%<\/td>\n<\/tr>\n | \nProved + Probable (2P)
(boe\/share)<\/td>\n | \u00a0<\/td>\n | 1.38<\/td>\n | 1.49<\/td>\n | 1.65<\/td>\n | 20%<\/td>\n | 11%<\/td>\n<\/tr>\n | \nProved + Probable + Possible (3P)(2) <\/sup>(boe\/share)<\/td>\n| \u00a0<\/td>\n | 1.82<\/td>\n | 2.14<\/td>\n | 2.39<\/td>\n | 31%<\/td>\n | 12%<\/td>\n<\/tr>\n<\/table>\n (1) All reserves are presented as Parex working interest before royalties. 2021 net reserves after royalties are: PDP 68,703 Mboe, proved developed non-producing 8,336 Mboe, proved undeveloped 29,727 Mboe, 1P 106,765 Mboe, 2P 165,781 Mboe and 3P 238,441 Mboe.
(2) Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.<\/p>\n 2021 Gross Reserves by Area<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | Proved <\/strong><\/td>\nProved +
Probable<\/strong><\/td>\nProved +
Probable +
Possible<\/strong><\/td>\n<\/tr>\n\nArea<\/strong><\/td>\n| \u00a0<\/td>\n | Mboe<\/strong>(1)<\/strong><\/sup><\/td>\nMboe<\/strong>(1)<\/strong><\/sup><\/td>\nMboe<\/strong>(1)<\/strong><\/sup><\/td>\n<\/tr>\n\n| LLA-34<\/td>\n | \u00a0<\/td>\n | 80,243<\/td>\n | 119,724<\/td>\n | 160,096<\/td>\n<\/tr>\n | \n| Southern Llanos – Cabrestero, LLA-32<\/td>\n | \u00a0<\/td>\n | 19,477<\/td>\n | 28,306<\/td>\n | 38,187<\/td>\n<\/tr>\n | \n| Northern Llanos – Capachos, Arauca<\/td>\n | \u00a0<\/td>\n | 11,462<\/td>\n | 21,597<\/td>\n | 28,223<\/td>\n<\/tr>\n | \n| Magdalena – VIM-1, Fortuna<\/td>\n | \u00a0<\/td>\n | 8,439<\/td>\n | 20,507<\/td>\n | 43,423<\/td>\n<\/tr>\n | \n| Other Areas<\/td>\n | \u00a0<\/td>\n | 5,645<\/td>\n | 8,691<\/td>\n | 16,998<\/td>\n<\/tr>\n | \nTotal<\/strong><\/td>\n| \u00a0<\/td>\n | 125,266<\/td>\n | 198,825<\/td>\n | 286,927<\/td>\n<\/tr>\n<\/table>\n (1) All reserves are presented as Parex working interest before royalties. Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves. The estimates of reserves and future net revenue for individual properties may not reflect the same confidence level as estimates of reserves and future net revenue for all properties, due to the effects of aggregation.<\/p>\n 2021 Gross Year-End Reserves Volumes by Product Type<\/strong>(1)<\/strong><\/sup><\/p>\n\n\nProduct Type<\/strong><\/td>\n| \u00a0<\/td>\n | Proved
Developed
Producing<\/strong><\/td>\nTotal Proved <\/strong><\/td>\nTotal Proved
+ Probable<\/strong><\/td>\nTotal Proved +
Probable +
Possible<\/strong><\/td>\n<\/tr>\n\nLight & Medium Crude Oil (Mbbl)(2)<\/sup><\/td>\n| \u00a0<\/td>\n | 7,428<\/td>\n | 21,693<\/td>\n | 43,282<\/td>\n | 74,541<\/td>\n<\/tr>\n | \n| Heavy Crude Oil (Mbbl)<\/td>\n | \u00a0<\/td>\n | 68,860<\/td>\n | 97,739<\/td>\n | 143,321<\/td>\n | 190,009<\/td>\n<\/tr>\n | \n| Natural Gas Liquids (Mbbl)<\/td>\n | \u00a0<\/td>\n | 189<\/td>\n | 531<\/td>\n | 773<\/td>\n | 1,086<\/td>\n<\/tr>\n | \nConventional Natural Gas (MMcf)(3)<\/sup><\/td>\n| \u00a0<\/td>\n | 24,492<\/td>\n | 31,817<\/td>\n | 68,703<\/td>\n | 127,749<\/td>\n<\/tr>\n | \nOil Equivalent (Mboe)<\/strong>(4)<\/strong><\/sup><\/td>\n| \u00a0<\/td>\n | 80,559<\/td>\n | 125,266<\/td>\n | 198,825<\/td>\n | 286,927<\/td>\n<\/tr>\n<\/table>\n (1) All reserves are presented as Parex working interest before royalties. Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category. Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10% probability that the quantities recovered will equal or exceed the sum of proved plus probable plus possible reserves.
(2) Mbbl is defined as thousands of barrels.
(3) MMcf is defined as one million cubic feet.
(4) Columns may not add due to rounding.<\/p>\n Summary of Reserve Metrics \u2013 Company Gross<\/strong>(1)<\/strong><\/sup><\/p>\n\n\n| \u00a0<\/td>\n | 2021<\/strong><\/td>\n3-Year<\/strong><\/td>\n<\/tr>\n\n| USD$<\/td>\n | Proved
Developed
Producing<\/strong><\/td>\nProved<\/strong><\/td>\nProved +
Probable<\/strong><\/td>\nProved +
Probable<\/strong><\/td>\n<\/tr>\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n | \u00a0<\/td>\n<\/tr>\n | \n| F&D Costs ($\/boe)<\/td>\n | 10.71<\/td>\n | 25.71<\/td>\n | 23.76<\/td>\n | 11.47<\/td>\n<\/tr>\n | \n| FD&A Costs ($\/boe)<\/td>\n | 10.71<\/td>\n | 24.46<\/td>\n | 18.35<\/td>\n | 11.17<\/td>\n<\/tr>\n | \n| Recycle Ratio – F&D<\/td>\n | 3.4 x<\/td>\n | 1.4 x<\/td>\n | 1.5 x<\/td>\n | 2.4 x<\/td>\n<\/tr>\n | \n| Recycle Ratio – FD&A<\/td>\n | 3.4 x<\/td>\n | 1.5 x<\/td>\n | 2.0 x<\/td>\n | 2.4 x<\/td>\n<\/tr>\n<\/table>\n (1) Please refer to \u201cUnaudited Financial Information\u201d and \u201cNon-GAAP Terms\u201d. All reserves are presented as Parex working interest before royalties. Please refer to the \u201cReserve Advisory\u201d section for a description of each reserve category.<\/p>\n Reserve Life Index (\u00abRLI\u00bb)<\/strong><\/p>\n\n\n| \u00a0<\/td>\n | \u00a0<\/td>\n | Dec. 31, 2019<\/strong>(1)<\/strong><\/sup><\/td>\nDec. 31, 2020<\/strong>(2)<\/strong><\/sup><\/td>\nDec. 31, 2021<\/strong>(3)<\/strong><\/sup><\/td>\n<\/tr>\n\n| Proved Developed Producing (PDP)<\/td>\n | \u00a0<\/td>\n | 3.6 years<\/td>\n | 4.3 years<\/td>\n | 4.4 years<\/td>\n<\/tr>\n | \n| Proved (1P)<\/td>\n | \u00a0<\/td>\n | 7.0 years<\/td>\n | 7.5 years<\/td>\n | 6.9 years<\/td>\n<\/tr>\n | \n| Proved Plus Probable (2P)<\/td>\n | \u00a0<\/td>\n | 10.0 years<\/td>\n | 11.4 years<\/td>\n | 10.9 years<\/td>\n<\/tr>\n<\/table>\n (1) Calculated by dividing the amount of the relevant reserves category by average Q4 2019 production of 54,221 boe\/d annualized (consisting of 8,346 bbl\/d of light crude oil and medium crude oil, 44,740 bbl\/d of heavy crude oil and 6,810 mcf\/d of conventional natural gas).
(2) Calculated by dividing the amount of the relevant reserves category by average Q4 2020 production of 46,642 boe\/d annualized (consisting of 6,637 bbl\/d of light crude oil and medium crude oil, 38,332 bbl\/d of heavy crude oil and 10,038 mcf\/d of conventional natural gas).
(3) Calculated by dividing the amount of the relevant reserves category by estimated average Q4 2021 production of 49,779 boe\/d annualized (consisting of 6,376 bbl\/d of light crude oil and medium crude oil, 41,534 bbl\/d of heavy crude oil and 11,214 mcf\/d of conventional natural gas).<\/p>\n Future Development Capital (\u201cFDC\u201d) (000s) \u2013 GLJ 2021 Report<\/strong>(1)<\/strong><\/sup><\/p>\n\n\nReserve Category<\/strong><\/td>\n| \u00a0<\/td>\n | 2022<\/strong><\/td>\n| \u00a0<\/td>\n | 2023<\/strong><\/td>\n| \u00a0<\/td>\n | 2024<\/strong><\/td>\n| \u00a0<\/td>\n | 2025<\/strong><\/td>\n2026+<\/strong><\/td>\nTotal
FDC<\/strong><\/td>\nTotal
FDC\/boe<\/strong><\/td>\n<\/tr>\n\n| PDP<\/td>\n | $<\/td>\n | 5,930<\/td>\n | $<\/td>\n | 8,807<\/td>\n | $<\/td>\n | \u2014<\/td>\n | $<\/td>\n | \u2014<\/td>\n | $<\/td>\n | \u2014<\/td>\n | $<\/strong><\/td>\n14,737<\/strong><\/td>\n| $<\/strong><\/td>\n | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |