CALGARY, ALBERTA--(Marketwire - March 9, 2011) - NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES Parex Resources Inc. ("Parex" or the "Company" or "we") (TSX VENTURE:PXT), a company focused on oil exploration and production in Colombia and Trinidad, is pleased to announce financial and operating results for the three months (fourth quarter) and year ended December 31, 2010. Copies of the Company's consolidated financial statements and the related Management's Discussion and Analysis ("MD&A") have been filed with Canadian Securities Regulatory Authorities and will be made available under the Company's profile at and on the Company's website at All amounts below are in United States dollars unless otherwise stated. Fourth quarter highlights include: - Independent reserve evaluation for Colombian Kona discovery as prepared by GLJ Petroleum Consultants Ltd. ("GLJ") reported proved plus probable reserves of 5.85 million barrels of light oil ("mmbbl") (company working interest); - Kona-1 production rates of up to 2,900 barrels of oil per day ("bbl/d") gross on natural flow (1,450 bbl/d net company working interest); - Construction of the Kona oil loading facility was completed in November 2010. In May 2011, Parex expects to complete the construction of the Kona oil treatment plant with a capacity of 25,000 barrels of fluid per day; - Testing of the Trinidad & Tobago exploration well, Snowcap-1 began in the fourth quarter of 2010 and continued subsequent to year-end. Average production test rates of 580 bbl/d and 5.4 million standard cubic feet per day ("mmscfd") gross (290 bbl/d and 2.7 mmscfd, company working interest) on natural flow; - The Company closed a Cdn$75.4 million bought-deal equity financing on November 16, 2010 raising net proceeds of Cdn$71.2 million; and - Parex maintained a strong balance sheet with cash and cash equivalents of $123.5 million and working capital of $115.3 million at December 31, 2010. Fourth Quarter and Fiscal 2010 Financial Summary The fourth quarter of 2010 marked Parex' first quarter of oil production from Colombia. Sales volumes, net before royalty, for the fourth quarter of 2010 averaged 306 bbl/d, as production from the Kona field commenced in late November 2010. February 2011 sales averaged approximately 1,200 bbl/d and Parex' 2011 exit rate guidance is 7,000-9,000 bbl/d. During the fourth quarter of 2010 the Colombian realized sales price was $89.69 per barrel generating an operating netback of $54.63 per barrel. The Company's net loss for 2010 was $13.4 million ($0.20 per share fully diluted). For the three months ended December 31, 2010 net loss was $1.3 million. Funds used in operations was $7.6 million for 2010 and funds flow from operations was $1.9 million for the fourth quarter of 2010. The Company's capital expenditure for 2010 was $42.9 million, with $29.0 million invested in Colombia and $13.8 million invested in Trinidad. Parex' capital expenditure guidance for 2011 is $93-$120 million. Parex ended 2010 with $115.3 million of working capital, $123.5 of cash and cash equivalents, and no long-term debt. /T/ Financial Highlights For the three months ended December 31 For the year (unaudited) (1) ended December 31 (1) 2010 2009 (2) 2010 2009 (2) ---------------------------------------------------------------------------- Average daily sales Oil (bbl/d) 306 - 77 - Natural gas (boe/d) - 6 9 1 Total (boe/d) 306 6 86 1 Realized sales price ($/boe) 89.69 25.93 83.51 25.93 Operating netback (per boe) Oil and natural gas revenue 89.69 25.93 83.51 25.93 Royalties (6.21) - (5.57) - ---------------------------------------------------------------------------- Net revenue 83.48 25.93 77.94 25.93 Production expense (10.14) (11.71) (11.11) (11.71) Transportation expense (18.71) - (16.75) - ---------------------------------------------------------------------------- Operating netback 54.63 14.22 50.08 14.22 Financial ($000s except per share amounts) Oil and natural gas revenue 2,521 14 2,621 14 Net income (loss) (1,285) (2,316) (13,385) (4,729) Per share - basic $ (0.02) $ (0.04) $ (0.20) $ (0.09) Per share - diluted $ (0.02) $ (0.04) $ (0.20) $ (0.09) Funds flow from (used in) operations 1,854 (1,569) (7,643) (3,926) Per share - basic $ 0.03 $ (0.03) $ (0.12) $ (0.08) Per share - diluted $ 0.03 $ (0.03) $ (0.12) $ (0.08) Capital expenditure 13,075 9,479 42,822 22,383 Canada (26) 63 29 63 Colombia 11,299 7,202 29,025 10,197 Trinidad 1,802 2,214 13,768 12,123 Total assets (end of period) 210,500 133,485 210,500 133,485 Working capital (end of period) 115,326 95,704 115,326 95,704 Long-term debt (end of period) - - - - Weighted average shares outstanding (000s) Basic 70,388 56,518 65,516 51,055 Diluted 70,388 56,518 65,516 51,055 Outstanding shares (end of period) (000s) Basic 76,968 63,870 76,968 63,870 Diluted 82,608 67,345 82,608 67,345 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- (1) The table above includes non-GAAP measures. Please refer to the "Non-GAAP Terms" section for further discussion. (2) Determined using continuity-of-interest accounting (EIC-89). Please refer to the "Business Continuity" section for further discussion. /T/ 2010 Reserve Summary As announced February 15, 2011, the independent reserves report prepared by GLJ effective December 31, 2010 ("GLJ Report") reported the Company's working interest reserves for the Kona light oil discovery. Proved reserves were approximately 1.1 mmbbl, proved plus probable reserves were approximately 5.9 mmbbl and proved plus probable plus possible reserves were approximately 10.4 mmbbl. The Company's three year average finding and developing ("F&D") cost including future development capital ("FDC") was $17.74 per barrel for total proved plus probable reserves. These F&D costs include $30.6 million of capital expenditure incurred on Trinidad exploration acreage not evaluated by GLJ. Factoring out the Trinidad capital expenditure, the three year average F&D costs for the total proved plus probable reserves would have been $12.50 per barrel. /T/ Company Total Total Proved plus Probable ---------------------------------------------------------------------------- Reserves mmbbl 5.854 Capital: 3 year Cumulative (1) (2) ($000) $69,880 Future Development Capital ($000) $33,971 F&D $/bbl $17.74 Parex Colombia Total Proved plus Probable ---------------------------------------------------------------------------- Reserves mmbbl 5.854 Capital:3 year Cumulative (1) (2) ($000) $39,222 Future Development Capital ($000) $33,971 F&D $/bbl $12.50 (1) Determined using continuity-of-interest accounting (EIC-89) (2) Total property, plant and equipment expenditures from 2008 to 2010 ---------------------------------------------------------------------------- /T/ The GLJ Report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation Handbook ("COGE Handbook") and National Instrument 51-101, Standards of Disclosure for Oil and Gas Activities ("NI 51-101"). Additional reserve information as required under NI 51-101 will be included in the Company's Annual Information Form which will be filed on SEDAR by April 30, 2011. Colombia Exploration and Operations Update The Kona-1 well on Block LLA-16 (Parex 50 percent working interest), commenced production from the Mirador formation in late November 2010. Oil sales have been interrupted at times due to current transportation and offloading capacity limitations being experienced in the Llanos Basin. During February 2011, oil sales from the Kona-1 well were approximately 2,400 bbl/d (1,200 bbl/d net) with a water cut of approximately 2 percent on natural flow. A drilling rig re-entered the Kona-2 well to complete the deeper Gacheta Formation on March 7, 2011. If successful the well will be brought on-stream as a Gacheta producer. If the Gacheta Formation cannot be successfully completed at Kona-2, then we expect to remediate, complete and test the C7 formation, which indicated 50 feet of potential net oil pay on log analysis and has not yet been tested in either of the Kona-1 or Kona-2 wells. The Kona-3 well was spud on January 5, 2011 and drilled to the target depth of 13,025 feet. Kona-3 was designed to evaluate the northern extent of the Kona field. The bottom-hole location for the Mirador formation is 445 meters north of Kona-1 and approximately 865 meters north from Kona-2. Initial evaluation of well logs indicates potential net oil pay, measured as true vertical depth, of 20 feet in the C7 Formation, and 40 feet in the Mirador Formation, which was consistent with the Company's pre-drill expectations. The Gacheta Formation was wet as expected. Parex expects the next operation on the Kona-3 well to be completing and testing the Mirador Formation with the existing drilling rig. On March 1, 2011 the Kona-4 well on Block LLA-16 was spud. Kona-4, located approximately 420 meters south of Kona-2, is programmed to drill to a total measured depth of 12,800 feet and evaluate the C7, Mirador, Gacheta and Une formations. Construction of the Kona oil loading facility was completed in November 2010. In May 2011, Parex expects to complete the construction of the Kona oil treatment plant with a capacity of 25,000 barrels of fluid per day ("bfpd"). The oil loading facility is located on the region's main paved road which allows for all-season tanker truck access. On January 19, 2011 the Kopi-1 well was spud. This well was drilled to a depth of 10,993 feet and is located 18 kilometres south of the Kona discovery on the same fault trend. The well has been cased to total depth and a service rig is on location to complete and test the Mirador and C7 formations. Along a new fault trend in Block LLA-16 the Supremo-1 well was drilled to a depth of 12,035 feet. The well produced on pump approximately 2,500 bfpd from the Mirador formation, with a 31 degree API oil rate of 500 bbl/d. The Supremo-1 well is currently suspended. Technical analysis has determined that Supremo-1 was drilled off structure and it is planned in 2011 to drill Supremo-2 from the same pad to a position up dip of the original bottom hole location to attempt to locate the top of the structure. Following Kopi-1, Parex expects to mobilize the service rig to Supremo-1 and install an electrical submersible pump to produce from the Mirador Formation. Along the same fault trend as Supremo-1, the Goroka-1 well was drilled to a depth of 12,037 feet. The prospective formations tested wet and the well has been completed as a water disposal well. The next drilling prospect on Block LLA-20 (Parex 50% working interest) is Cumbre, which will test a fault trend located east of a producing field and west of Parex' Block LLA-57. Parex expects that drilling will commence in the fourth quarter 2011. On blocks LLA-29 and LLA-30 (Parex 50% working interest), the block operator has advised Parex that it anticipates drilling will commence in the fourth quarter 2011, later than planned as a result of its delay in obtaining regulatory approval. Trinidad Exploration Update Snowcap-1, an exploration well located on the Company's Trinidad onshore Moruga Block, was drilled and cased in the third quarter of 2010. During February 2011, the Snowcap-1 well tested the primary Herrera zone and the final four day gross rate averaged 580 bbl/d of 35 API oil and 5.4 mmscfd with wellhead pressure of 600 psi on a 48/64th inch choke under natural flow. The Company is currently analyzing information from down-hole pressure recorders and will then evaluate potential follow-up appraisal locations to the Snowcap-1 discovery. We had previously reported on June 14, 2010 that the Firecrown-1 well, located on the onshore Moruga Block, reached a total measured depth of 8,701 feet and penetrated both the primary and secondary objectives in the Herrera Formation. The well was cased to a depth of 8,400 feet to evaluate the potential of these prospective zones. Regulatory approval to test this well was received in late 2010. A drilling rig has re-entered the well and Parex expects to deepen Firecrown-1 to a block qualifying depth of 10,500 feet prior to production testing. Post-earning, Parex' working interest for the Moruga Block will be 50 percent. Conference Call Information Parex will host a conference call to discuss these results on Thursday March 10, 2011 beginning at 10:30 am MST (12:30 pm EST). Media, analysts and investors wishing to participate in the call can access it by calling 1-866-696-5910, pass code: 1520456. The live audio Corporate Overview Parex, through its direct and indirect subsidiaries, is engaged in oil and natural gas exploration, development and production in South America and the Caribbean region. Parex is conducting exploration activities on its 595,000 acre holdings in the Llanos Basin of Colombia and 223,500 acre holdings onshore Trinidad. Parex is headquartered in Calgary, Canada. This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. Business Continuity The Company was incorporated as 1485196 Alberta Ltd. on August 17, 2009, pursuant to the Business Corporations Act (Alberta). On September 29, 2009 the Company filed Articles of Amendment to change its name to Parex Resources Inc. The Company was incorporated for the purpose of completing a Plan of Arrangement (the "Arrangement") under the Business Corporations Act (Alberta) with Pluspetrol Resources Corporation N.V., its wholly owned subsidiary, 1462627 Alberta Ltd. (together "Pluspetrol") and Petro Andina Resources Inc. ("Petro Andina"). In connection with the Arrangement, through a series of transactions, Parex acquired from Petro Andina all of the issued and outstanding shares of Petro Andina (Barbados) Ltd. (now Parex Resources (Barbados) Ltd.) ("Parex Barbados"), Petro Andina (Colombia) Ltd. (now Parex Resources (Colombia) Ltd.) ("Parex Colombia") and indirectly all of the issued and outstanding shares of Petro Andina (Trinidad) Ltd. (now Parex Resources (Trinidad) Ltd.) ("Parex Trinidad"), as well as inter-company loans and other receivables from Parex Barbados, Parex Trinidad and Parex Colombia, working capital and other miscellaneous assets. As the shareholders of Petro Andina ultimately continued to hold their respective interests in Parex, there was no resulting change of control of Parex Barbados and Parex Colombia. Therefore, the acquisition was accounted for using continuity-of-interests accounting under the Canadian Institute of Chartered Accountants ("CICA") Emerging Issues Committee Abstract 89 "Exchanges of Ownership Interests between Enterprises Under Common Control - Wholly and Partially-Owned Subsidiaries" ("EIC-89"). Under EIC-89 no fair value adjustments were made for the assets acquired. The audited consolidated financial statements of Parex reflect the assets and liabilities of Parex Barbados and Parex Colombia at their book value as reported in the financial statements of Parex Barbados and Parex Colombia for the period ended December 31, 2010. In addition, the comparative consolidated financial statements of Parex were restated to reflect the financial position and results of operations as if Parex, Parex Barbados and Parex Colombia had been combined since their inception. As a result, references to Parex incorporate the activities of Parex and its subsidiaries from their inception. Non-GAAP Terms Funds flow used in, or from operations, working capital and operating netback per barrel may from time to time be used by the Company, but do not have any standardized meaning under GAAP and may not be comparable to similar measures presented by other companies. Funds flow used in, or from operations includes all cash generated from operating activities and is calculated before changes in non-cash working capital. Funds flow used in operations is reconciled with net earnings in the Consolidated Statements of Cash Flows. Funds flow per share is calculated by dividing funds flow used in, or from operations by the weighted average number of shares outstanding. Working capital includes current assets less current liabilities. Operating netback per barrel equals sales revenue, less royalties, production expense and transportation expense, divided by total equivalent sales volume. Management uses these non-GAAP measures for its own performance measurement and to provide shareholders and investors with additional measurements of the Company's efficiency and its ability to fund a portion of its future growth expenditures. Advisory on Forward Looking Statements Certain information regarding Parex set forth in this document contains forward-looking statements that involve substantial known and unknown risks and uncertainties. The use of any of the words "plan", "expect", "prospective", "project", "intend", "believe", "should", "anticipate", "estimate" or other similar words, or statements that certain events or conditions "may" or "will" occur are intended to identify forward-looking statements. Such statements represent Parex's internal projections, estimates or beliefs concerning, among other things, future growth, results of operations, production, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, plans for and results of drilling activity, environmental matters, business prospects and opportunities. These statements are only predictions and actual events or results may differ materially. Although the Company's management believes that the expectations reflected in the forward-looking statements are reasonable, it cannot guarantee future results, levels of activity, performance or achievement since such expectations are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause Parex' actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, Parex. In particular, forward-looking statements contained in this document include, but are not limited to, statements with respect to the performance characteristics of the Company's oil properties; supply and demand for oil; financial and business prospects and financial outlook; results of drilling and testing, results of operations; drilling plans; activities to be undertaken in various areas; capital plans in Colombia and exit rate production; plans to acquire and process 3-D seismic; timing of drilling and completion; and planned capital expenditures and the timing thereof. In addition, statements relating to "reserves" or "resources" are by their nature forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the resources and reserves described can be profitably produced in the future. The recovery and reserve estimates of Parex' reserves provided herein are estimates only and there is no guarantee that the estimated reserves will be recovered. These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada, Colombia and Trinidad & Tobago; industry conditions including changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada, Colombia and Trinidad & Tobago; competition; lack of availability of qualified personnel; the results of exploration and development drilling and related activities; obtaining required approvals of regulatory authorities, in Canada, Colombia and Trinidad & Tobago; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market prices for oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws or changes in tax laws and incentive programs relating to the oil industry; ability to access sufficient capital from internal and external sources; the risks that any estimate of potential net oil pay is not based upon an estimate prepared or audited by an independent reserves evaluator; that there is no certainty that any portion of the hydrocarbon resources will be discovered, or if discovered that it will be commercially viable to produce any portion thereof; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these and other factors that could effect Parex's operations and financial results are included in reports on file with Canadian securities regulatory authorities and may be accessed through the SEDAR website ( Although the forward-looking statements contained in this document are based upon assumptions which Management believes to be reasonable, the Company cannot assure investors that actual results will be consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding: current commodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil; the impact of increasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; royalty rates, future operating costs, and other matters. Management has included the above summary of assumptions and risks related to forward-looking information provided in this document in order to provide shareholders with a more complete perspective on Parex's current and future operations and such information may not be appropriate for other purposes. Parex's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do, what benefits Parex will derive there from. These forward-looking statements are made as of the date of this document and Parex disclaims any intent or obligation to update publicly any forward-looking statements, whether as a result of new information, future events or results or otherwise, other than as required by applicable securities laws.

Contact Information: Parex Resources Inc. Michael Kruchten Manager, Investor Relations (403) 517-1733 (403) 265-8216 (FAX) or Parex Resources Inc. Kenneth G. Pinsky Vice President, Finance and Chief Financial Officer (403) 517-1729 (403) 265-8216 (FAX)