Mr. Mike Kruchten reports

PAREX RESOURCES COMPLETES ACQUISITION OF FRONTERA E&P, BECOMING COLOMBIA'S LARGEST INDEPENDENT OIL & GAS PRODUCER

Parex Resources Inc. has successfully closed of its previously announced acquisition of all the Colombian exploration and production assets of Frontera Energy Corp. Pursuant to the transaction, Parex acquired 100 per cent of Frontera Petroleum International Holdings B.V. (Frontera E&P) for cash consideration of $500-million (U.S.), financed with the proceeds from Parex's recent issuance of senior unsecured notes and the assumption of net debt. An additional contingent payment of $25-million (U.S.) is payable upon the execution of a certain contract extension within 12 months.

Imad Mohsen, president and chief executive officer, commented: "This is a significant milestone for Parex and marks the successful completion of a highly strategic transaction. The addition of Frontera E&P's upstream business to our high-quality portfolio establishes Parex as the largest independent, Colombia-focused upstream company, with greater scale, enhanced capital efficiency and a more resilient platform for long-term growth. The transaction was completed at an attractive valuation, enables capital allocation optionality across the portfolio and offers meaningful synergy potential given the strong strategic fit, while further strengthening our talented employee base across the organization."

Daniel Ferreiro, president and country manager, commented: "We are approaching this integration with a clear focus on safety, operational continuity and people. The experience and expertise of the employees joining Parex, together with the strength of our existing team, will be instrumental in realizing the full value of this transaction. We remain committed to fostering strong relationships with communities, partners and stakeholders as we move forward together."

Key highlights:

• Added 37,000 barrels of oil equivalent per day (boe/d) of cash-generating, low-decline assets with the transaction, supporting previously disclosed step-change H2 (second half) 2026 average production guidance of 82,000 to 91,000 boe/d;
• Established significant scale, with over 7.9 million acres of land and a sizable, long-life reserve base;
• Upgraded operational efficiency through enhanced oil recovery, horizontal and multilateral drilling, and advanced seismic imaging, driving improved capital efficiency;
• Positioned to unlock meaningful synergies through portfolio integration and optimization;
• Unhedged portfolio, driving strong free funds flow generation that supports disciplined reinvestment, deleveraging and shareholder returns.

With an effective transaction date of Jan. 1, 2026, free funds flow generated by Frontera E&P prior to today's close would reduce net consideration paid.

About Parex Resources Inc.

Parex is the largest independent oil and gas company in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters are in Calgary, Canada, with an operating office in Bogota, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

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