Mr. Imad Mohsen of Parex reports

PAREX RESOURCES ANNOUNCES PROPOSAL TO ACQUIRE FRONTERA ENERGY'S COLOMBIAN E&P ASSETS

Parex Resources Inc. has submitted an acquisition proposal to the board of directors of Frontera Energy Corp. to acquire all of Frontera's Colombian upstream business in an all-cash offer for consideration of $500-million (U.S.), plus the assumption of debt, in addition to a contingent payment of $25-million (U.S.) with terms that are substantially the same as the existing acquisition agreement previously announced. The proposal represents a $125-million (U.S.) premium compared with the existing acquisition agreement.

Imad Mohsen, president and chief executive officer, said: "Our all-cash offer to acquire Frontera's Colombian-based upstream business provides immediate and greater value for Frontera and its shareholders. Based on the premium offered, we expect that the Frontera board will conclude that our proposal will be a superior proposal as defined by the previously announced acquisition agreement. We look forward to further discussions with Frontera's board and management team to finalize a transaction."

As one of the largest independent oil and gas companies in Colombia, Parex is focused on strategically investing in opportunities that are accretive to its portfolio and aligned with a Colombia-focused growth strategy. The company's existing partnership at VIM-1 gives direct insight into Frontera's assets and the exceptional quality of its people. A combination of both portfolios would immediately create the largest independent Colombian-focused energy company, delivering greater scale, enhanced capital efficiency, stronger free cash flow generation and a more resilient platform for long-term growth.

Parex is confident a successful transaction would unlock significant and immediate value for shareholders at both companies and be a great win for Colombia.

About Parex Resources Inc.

Parex is one of the largest independent oil and gas companies in Colombia, focusing on sustainable, conventional production. The company's corporate headquarters is 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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