Announces Increase to PDP and 2P Per Share Reserves CALGARY, Alberta, Feb. 03, 2022 (GLOBE NEWSWIRE) -- Parex Resources Inc. (“Parex” or the "Company") (TSX:PXT) is pleased to announce the results of its annual independent reserves assessment as at December 31, 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 (“NCIB”). Parex has purchased the maximum allowable common shares under its NCIBs for the previous three years.
The financial and operational information contained below is based on the Company’s unaudited estimated results for the year ended December 31, 2021. All currency amounts are in United States dollars, unless otherwise stated.
2021 Year-End Corporate Reserves Report: Highlights
“With 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,” commented Imad Mohsen, President and Chief Executive Officer.
For the year ended December 31, 2021, Parex:
- Added 25.3 million barrels of oil equivalent ("MMboe") proved developed producing reserves (“PDP”) and 21.5 MMboe proved plus probable ("2P") reserves, replacing respectively 148% and 125% of total 2021 production (approximately 17.15 MMboe);
- Increased PDP and 2P reserves per share by 22% and 11%, respectively, with exploration activities complimented by the 2021 NCIB;
- 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;
- Realized estimated PDP finding, development & acquisition (“FD&A”) 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);
- 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);
- Realized an after tax proved (“1P”) net asset value (“NAV”) 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 31, 2021 working capital of $325 million.
https://www.globenewswire.com/news-release/2022/02/03/2378988/0/en/Parex-Resources-Announces-Increase-to-PDP-and-2P-Per-Share-Reserves-Declaration-of-Increased-Q1-2022-Dividend-and-Provides-NCIB-Update.html