Parex Announces Colombia Acquisition and Provides Operational Update

NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED
STATES


Parex Resources Inc. ("Parex" or the "Company") (TSX:PXT), a company focused on
oil exploration and production in Colombia and Trinidad, announces an
acquisition of the class A common shares of a Bermuda based, Colombian focused
private company. The Company also provides an operations update on its current
activities, including the test results of its Java-1 and Cumbre-1 wells and
revised 2012 guidance.


Colombia Acquisition 

Parex, through a wholly owned subsidiary, has entered into a purchase and sale
agreement with a Bermuda based subsidiary (the "Seller") of Nabors Industries
Ltd., to acquire its wholly owned subsidiary ("Targetco") (the "Acquisition"), 
the operations of which include interests in five exploration blocks located in
Llanos Basin and two blocks located in Middle Magdalena Basin in Colombia for a
total of approximately 567,000 gross acres (276,000 net acres). The Acquisition
closed on April 12, 2012 with an effective date of February 29, 2012. RBC
Capital Markets acted as financial advisor to Parex in respect of the
Acquisition, and FirstEnergy Capital Corp. acted as strategic advisor. 


The consideration paid for Targetco shares was approximately US$72.6 million in
cash, including customary closing adjustments. Targetco has no bank debt and an
estimated working capital deficiency as at February 29, 2012 of $2.4 million.
Parex will also be assuming $17.7 million of letters of credit related to
Targetco's interests post closing. The Acquisition was funded by Parex' working
capital. Parex is also in the process of securing a $50 million revolving credit
facility with a Canadian chartered bank.  


TargetCo production is approximately 100 barrels of oil per day ("bopd") from
the Middle Magdalena Basin. In the Llanos Basin operational activities include 3
currently drilling exploratory wells and the planned completion of one standing
exploratory well. TargetCo operates in Colombia and has approximately 50
Colombian domiciled employees.


An independent reserves evaluation was prepared by GLJ Petroleum Consultants
Ltd. ("GLJ") with an effective date of March 31, 2012 ("GLJ Evaluation") in
respect of certain of Targetco's non-producing properties. GLJ evaluated
existing well data related to such properties and assigned probable reserves of
2.3 million barrels. The GLJ Evaluation 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"). GLJ was not asked to
conduct a review of the Targetco producing properties at this time.


The recovery and reserve estimates of crude oil reserves provided in this news
release are estimates only, and there is no guarantee that the estimated
reserves will be recovered. Actual crude oil reserves may eventually prove to be
greater than, or less than, the estimates provided herein.


Parex has been named as a defendant in a lawsuit (the "Lawsuit") filed in the
61st Judicial District Court of Harris County, Texas (the "Texas Court") by a
Texas based private company (the "Plaintiff"). The Lawsuit relates to a share
purchase agreement entered into by the Plaintiff and the Seller (prior to the
agreement entered into by Parex and the Seller) respecting the proposed purchase
by the Plaintiff of the shares of TargetCo, which prior agreement the Plaintiff
claims was improperly terminated by the Seller. In the Lawsuit, the Plaintiff is
seeking a temporary injunction preventing the sale of the shares of TargetCo by
the Seller and an order of specific performance against the Seller to enforce
the contract between the Seller and the Plaintiff, as well as an award of
damages from the Seller. Parex has not been served with the Lawsuit. The
Plaintiff is also seeking an undisclosed amount of damages from Parex alleging
Parex' "tortious interference" with the Plaintiff's alleged contractual
relationship with the Seller. Parex believes that the Lawsuit and the
Plaintiff's claims against it are baseless and without merit and assuming Parex
is ultimately served with the Lawsuit, Parex will vigorously defend the Lawsuit.


Parex Operations Update

Block LLA-16 (100% Working Interest)

The Java-1 well was drilled and cased to a total depth of 12,651 feet. The C7
Formation was perforated and a short production test was conducted with the
drilling rig on location. The well was production tested under natural flowing
conditions for a period of 27 hours at an average production rate of 524 bopd at
1% basic sediment and water ("BS&W"). A total of 589 barrels of 30 degrees API
oil was recovered during the test and bottom hole pressure recorders indicated a
final measured bottom-hole drawdown of 2.8%, indicating excellent reservoir
quality. The Java-2 well was spud on April 1, 2012 and was drilled to a
bottom-hole target located 740 meters north of the Java-1 well. The well is
being cased to complete the C7 Formation.


On April 1, 2012 the Java-1 well commenced production at a rate of approximately
400 bopd from the C7 Formation through a temporary facility. Parex is currently
installing a permanent facility for the Java discovery. 


The Malawi prospect located immediately south of the Sulawesi field is scheduled
to be drilled followed by the Kona-16 well during the second quarter of 2012.


The Merida-1 well was drilled and cased in the fourth quarter of 2011. Parex
plans to complete and test Merida-1 during April 2012. 


Block LLA-20 (100% Working Interest)

The Cumbre-1 well was drilled and cased to a total depth of 9,646 feet. The well
was perforated and short production tests were conducted separately on the C7
and Gacheta formations with the drilling rig on location. The Gacheta Formation
was tested under natural flowing conditions for a period of 41 hours at an
average production rate of 350 bopd of 35 degrees API oil at 1% BS&W. A total of
597 barrels of oil was recovered during the test and bottom-hole pressure
recorders indicated that the final measured bottom-hole drawdown was 18%
indicating good reservoir quality. The C7 Formation was tested under natural
flowing conditions for a period of 47 hours at an average production rate of 737
bopd of 30 degrees API oil at a final BS&W of 11%. A total of 1,444 barrels of
oil was recovered during the test and bottom hole pressure recorders indicated
that the final measured bottom-hole drawdown was 12% indicating good reservoir
quality. 


The Company expects the Cumbre-1 well to commence production at a rate of
approximately 500 bopd later this month from the C7 Formation through a
temporary facility. Parex is installing a permanent facility for the Cumbre
discovery. 


The Cumbre-2 well was spud on March 27, 2012 and is currently drilling to a
bottom-hole target located 350 meters north of the Cumbre-1 well.


Block LLA-29, LLA-30 & LLA-57 (100% Working Interest)

During 2012, Parex budgeted to drill 6-7 exploration wells on blocks LLA-29,
LLA-30 and LLA-57. In order to execute the program, Parex required surface
access prior to the start of the rainy season. Due to on-going civil disruptions
in the eastern Llanos region and now the onset of the rainy season, Parex
elected to defer the commencement of its exploration program to the next dry
season, with activity likely to commence in the fourth quarter of 2012 or early
2013. Parex has applied for contract extensions for blocks LLA-29 and LLA-30.


Los Ocarros Block (50% Working Interest)

As previously reported, the Las Maracas-2 side-track well was drilled to the
Mirador Formation and with formation damage tested rates of up to 938 bopd of 37
degrees API oil with negligible BS&W under natural flow. Parex now operates the
block and has commenced construction of the long-term production facility. Parex
expects to place the Las Maracas-2 sidetrack on a long-term production test by
early May 2012. Subject to regulatory approval in late June 2012, Parex expects
to drill the first follow-up appraisal well. 


Cabrestero Block (Farm-in 50% Working Interest)

Parex has entered into a farm-in agreement on the 29,562 gross acres Cabrestero
Block, located in the Llanos Basin. The Company will earn 50% working interest
on the block and be operator after completing its farm-in obligations by paying
100% of the cost to drill and evaluate the Kitaro-1 exploration well. Kitaro-1
is expected to drill to a target depth of 9,500 feet. The drilling rig is
mobilizing to the lease and is expected to spud during April 2012.


Colombia Operations Update (excluding Colombia Acquisition)

For the three months ending March 31, 2012, the average production was
approximately 11,700 bopd. 


The Kona-14 well on Block LLA-16 was drilled to test the northern limit of the
Gacheta Formation. The well encountered water bearing reservoir below the
oil-water contact and is being completed as a water disposal well. The next well
scheduled to be drilled on the Kona field is Kona-16, a Mirador delineation well
targeting a southern extension of the field. Kona recompletion activities are
on-going. 


The Sulawesi field is producing at a restricted rate of 250 bopd which is lower
than expectations. Later this month Parex expects to test the Gacheta Formation
in the Sulawesi-4 well and if that test is unsuccessful, the well will be
completed as a water disposal well. Following commissioning of a water disposal
well, the currently shut-in Sulawesi-3 well is expected to produce from the
Mirador Formation. 


Over the next 45 days, Parex expects to bring additional production on-line
through new facilities being commissioned at:




1.  Las Maracas-2ST - long-term test facility 
2.  Sulawesi - disposal well 
3.  Java - long-term test facility 
4.  Cumbre - long-term test facility 



Trinidad Exploration Update 

On the onshore Moruga Block, the Company has re-entered Firecrown-1 and
sidetracked the well to evaluate two Herrera objectives that it was unable to
test in the original wellbore. The first Herrera objective has been drilled and
intermediate casing was set. Parex is currently drilling the second deeper
objective and expects to test Firecrown-1 ST2 during April 2012. 


Also on the Moruga Block, located between the Carapal Ridge field and the
Snowcap fault block is the Green Hermit prospect. Green Hermit-1 is currently
drilling at approximately 1,500 feet and is expected to reach total depth at the
end of April 2012. Parex' working interest for the Moruga Block is 83.8% subject
to closing of the purchase of the additional 33.8% working interest.


The Company plans to start drilling its first high-impact Central Range Block
("CRB") Deep well, Tigre-1 during the third quarter of 2012. Construction
activities are on-going.


Revised 2012 Guidance - Under Review

Due to recent civil disruptions near blocks LLA-29, LLA-30 and LLA-57, the
Company was unable to access exploration prospects prior to the start of the
rainy season, thereby delaying capital plans into late 2012. Activity on farm-in
blocks that have year round access will substitute for some of the deferred
activity. 


Parex is revising its 2012 guidance as a result of the reduced 2012 activity on
blocks LLA-29, LLA-30 and LLA-57 and lower than expected production from
Sulawesi. Planned capital expenditure in Colombia and Trinidad, excluding the
Acquisition, has been reduced by $30 million to $200-$245 million. Exit rate
production, excluding both the Acquisition and Trinidad, has been reduced by
3,500 bopd to approximately 13,500 bopd, net before royalty. Parex expects to
update its 2012 guidance after receiving test results from wells related to the
Targetco Acquisition that are currently drilling or awaiting completion and the
results of testing existing Parex wells in Colombia and Trinidad. 


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, plans for and results of drilling activity, 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 and wells; results of drilling
and testing; results of operations; drilling plans; activities to be undertaken
in various areas; capital plans in Colombia; expected exit rate production;
timing of drilling, completion and testing; planned capital expenditures, the
timing thereof and the source of funding for such capital expenditures; terms of
the Acquisition; credit facility with a Canadian chartered bank; Parex'
assessment of the risks associated with the Lawsuit; application for contract
extensions for LLA-29 and LLA-30; new facilities being commissioned; completion
of acquisition of additional working interest on the Moruga block; timing of
updated 2012 guidance; and details of the Company's exploration drilling and
testing program. 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; failure to assume the letters of credit; failure to realize the
anticipated benefits of the Acquisition; failure to obtain a credit facility
with a Canadian chartered bank on the terms currently contemplated or at all;
that Parex is served with the Lawsuit; incorrect assessment by Parex of the
risks associated with the Lawsuit; failure to obtain contract extensions for
LLA-29 and LLA-30; failure to complete the acquisition of an additional working
interest on the Moruga Block; the factors described under "Risk Factors" in the
Company's annual information form for the year ended December 31, 2011; and
other factors, many of which are beyond the Company's control.  Readers are
cautioned that the foregoing list of factors is not exhaustive.  Additional
information on these and other factors that could effect Parex' operations and
financial results are included in reports on file with Canadian securities
regulatory authorities and may be accessed through the SEDAR website
(www.sedar.com).


Although the forward-looking statements contained in this document are based on
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, but not
limited to: 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; the status of the Lawsuit and Parex' assessment of risks
associated with the Lawsuit; that the Company will have sufficient cash flow,
debt or equity sources or other financial resources required to fund its capital
and operating expenditures and requirements as needed; that the Company's
conduct and results of operations will be consistent with its expectations; that
the Company will have the ability to develop the Company's properties in the
manner currently contemplated; that the estimates of reserves volumes and the
assumptions related thereto (including commodity prices and development costs)
are accurate in all material respects 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' current and future
operations and such information may not be appropriate for other purposes.
Parex' 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. 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.


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.
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