Parex Resources Inc.
TSX VENTURE : PXT

Parex Resources Inc.

December 11, 2009 16:00 ET

Parex Resources Provides Update on Share Purchase Warrants

CALGARY, ALBERTA--(Marketwire - Dec. 11, 2009) –

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

Parex Resources Inc. ("Parex" or the "Company") (TSX VENTURE:PXT) announces that the Company's share purchase warrants (the "Warrants") expired on December 6, 2009. Total cash proceeds from the exercised Warrants was Cdn$14.0 million, bringing the cumulative total cash and working capital resulting from the Plan of Arrangement, the subscription receipts and private placement to over Cdn$112 million. Approximately 95% of the Warrants were exercised, increasing the Company's common shares outstanding to 63,869,535 (67,344,535 fully diluted).

As previously disclosed, Parex has US$23 million of letters of credit outstanding related to the Company's ongoing exploration activities in Colombia which were previously secured by restrictions on US$23 million Parex cash. Export Development Canada ("EDC") has recently provided collateral to secure the letters of credit, in exchange for a general security agreement over Parex's Canadian assets and the restrictions on the US$23 million of Parex cash were removed.

Parex 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 489,000 acre (244,500 net acre) holdings in the Llanos Basin of Colombia and 218,500 acre (109,250 net acre) holdings onshore Trinidad & Tobago. 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.

Forward-Looking Statements

Certain statements regarding Parex, including management's assessment of future plans and operations, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Parex's control. Specifically, and without limitation, all statements included in this press release that address activities, events or developments that either Parex expects or anticipates will or may occur in the future, including management's assessment of future plans, may constitute forward-looking statements under applicable securities laws and necessarily involve known and unknown risks and uncertainties, most of which are beyond Parex's control. These risks may cause actual financial and operating results, performance, levels of activity and achievements to differ materially from those expressed in, or implied by, such forward-looking statements. Although Parex believe that the expectations represented in such forward-looking statements are reasonable, there can be no assurance that such expectations will prove to be correct. Although the forward-looking statements contained in this Press Release are based upon assumptions which management believes to be reasonable, Parex cannot assure shareholders that actual results will be consistent with these forward-looking statements. Accordingly, Parex cannot give any assurance or make any representations or warranty that the expectations conveyed by the forward-looking statements will prove to be correct and actual results may differ materially from those anticipated in the forward-looking statements. Parex cannot undertake any obligation to publicly update or revise any forward-looking statements other than required by applicable securities law.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

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)