Parex Resources Announces 2011 Fourth Quarter and 2011 Year-End Results, Including 61% Quarter Over Quarter Production Growth

CALGARY, ALBERTA--(Marketwire - March 13, 2012) -

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

Parex Resources Inc. ("Parex", the "Company" or "we") (TSX:PXT), is pleased to announce financial and operating results for the three months ("fourth quarter") and year ended December 31, 2011. An update on current field activities and the Company's drilling schedule for the first half of 2012 are also provided below.

Parex is focused on oil exploration and production in Colombia and Trinidad. 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 www.sedar.com and on the Company's website at www.parexresources.com. All amounts herein are in United States dollars unless otherwise stated.

Fourth quarter 2011 highlights:

• Achieved quarterly oil production of 11,342 barrels of oil per day ("bopd"), a 61% increase over the three months ending September 30, 2011;
• Realized sales price in Colombia averaged $102.15 per barrel generating an operating netback of $71.24 per barrel. Throughout the fourth quarter the Company marketed a significant portion of oil production with a Brent reference price, realizing an approximate $8 per barrel premium to WTI on average for the Company's fourth quarter oil sales;
• Generated funds flow from operations of $63.1 million ($0.58 per share basic), a 98% increase over the third quarter of 2011. Fourth quarter funds flow from operations were in excess of the $53.7 million invested in capital expenditures;
• Generated adjusted net income of $6.5 million ($0.06 per share basic);
• Drilled six wells in Colombia (6.0 net);
• Entered into an agreement to purchase an additional 33.8 percent working interest in the Moruga Block in Trinidad;
• Independent reserve evaluation for Colombia as prepared by GLJ Petroleum Consultants Ltd. ("GLJ") reported proved plus probable reserve growth of 83 percent, increasing from 5.9 million barrels ("mmbbl") of light oil at year-end 2010 to 10.7 mmbbl of light oil (net company working interest) at December 31, 2011;
• Strengthened our balance sheet with working capital increasing from $77.9 million at September 30, 2011 to $92.9 million at December 31, 2011.

Operating Highlights

		Three Months ended Dec 31,				Year ended Dec 31,
		(Unaudited			)
		2011		2010		2011		2010
Average crude oil volumes (before royalties) (1)
	Crude oil production (bopd)	11,342		306		5,345		77
	Crude oil sales (bopd)	10,233		306		4,670		77
Operating netback ($/boe)
	Oil and natural gas sales	102.15		89.69		100.43		83.51
	Royalties	(8.04	)	(6.21	)	(8.17	)	(5.57	)
	Net revenue	94.11		83.48		92.26		77.94
	Production expense	(6.97	)	(10.14	)	(6.58	)	(11.11	)
	Transportation expense	(15.90	)	(18.71	)	(16.20	)	(16.75	)
Operating netback		71.24		54.63		69.48		50.08
Financial Highlights(2)
($000s except per share amounts)
Oil and natural gas sales		96,169		2,521		171,170		2,621
Net income (loss)		4,477		(1,212	)	15,635		(13,531	)
	Per share - basic	0.04		(0.02	)	0.17		(0.20	)
Adjusted net income (loss) (2)(3)		6,470		(1,212	)	10,545		(13,531	)
	Per share - basic	0.06		(0.02	)	0.11		(0.20	)
Funds flow from (used in) operations		63,135		1,797		97,916		(7,699	)
	Per share - basic	0.58		0.03		1.05		(0.12	)
Capital expenditures		53,677		13,075		149,643		42,765
	Corporate acquisition - cash	-		-		252,987		-
Total assets		660,177		210,702		660,177		210,702
	Working capital surplus	92,893		115,136		92,893		115,136
	Convertible Debentures(4)	60,001		-		60,001		-
	Long-term debt	-		-		-		-
Outstanding shares (end of period) (000s)
	Basic	108,300		76,968		108,300		76,968
	Diluted(5)	124,963		82,608		124,963		82,608

1. Excludes 9 boe/d of 2010 natural gas production that was divested prior to October 1, 2010.
2. The table above contains Non-GAAP measures. See "Non-GAAP Terms" for further discussion.
3. Net income has been adjusted for the International Financial Reporting Standards ("IFRS") accounting effects of changes in the derivative financial liability related to the convertible debenture. Management considers adjusted net income a better measure of the Company's financial performance.
4. Face value of the convertible debenture is Cdn $85 million with a conversion price of $10.15 per share.
5. Diluted shares include the effects of issued stock options and convertible debenture potential shares. Based on the December 31, 2011 closing stock price of $6.97, diluted shares outstanding not including out of the money options and convertible debenture potential shares is 112.0 million shares.

Fourth Quarter and Fiscal 2011 Financial Summary

For the fourth quarter of 2011, sales volumes averaged 10,233 bopd (net working interest before royalty) and the average realized sales price in Colombia was $102.15 per barrel, generating an operating netback of $71.24 per barrel. Parex continued to market a significant portion of its crude oil production pursuant to contracts with Brent benchmark pricing. Not included in fourth quarter sales was the crude oil inventory of approximately 281,500 barrels of oil.

The Company's adjusted net income for fourth quarter of 2011 was $6.5 million ($0.06 per share basic). Net income of $4.5 million included a $2.0 million non-cash loss associated with the accounting treatment under IFRS for the Company's convertible debenture. Funds flow from operations was $63.1 million ($0.58 per share basic), a 98% increase over the third quarter of 2011.

The Company's capital expenditures were $53.7 million in the fourth quarter, entirely funded from funds flow from operations with surplus funds flow increasing working capital.

2011 Reserve Summary

As announced on February 15, 2012, the independent reserves report ("GLJ Report") prepared by GLJ effective December 31, 2011 reported the Company's reserves in Colombia's Llanos Basin. Proved reserves were approximately 5.0 mmbbl, proved plus probable reserves were approximately 10.7 mmbbl and proved plus probable plus possible reserves were approximately 17.6 mmbbl.

The Company's three-year average finding and development ("F&D") cost including future development capital ("FDC") was $39.14 per barrel for total proved plus probable reserves. Factoring out the Trinidad and Canada capital expenditures covering areas not evaluated for reserves, the three-year average F&D costs for the total proved plus probable reserves would have been $33.51 per barrel representing a recycle ratio of 2.1 times.

Parex' three-year average finding, development & acquisition ("FD&A") cost including FDC was $43.66 per barrel. Parex' Colombia FD&A (excluding Trinidad and Canada capital expenditures) was $40.25 representing a recycle ratio of 1.7 times.

Company Total Total Proved plus Probable Three-Year Average		F&D	FD&A
Reserve additions	mmbbl	7.7	12.7
Capital(1)	$000s	214,791	467,778
Future development capital	$000s	85,106	85,106
F&D	$/bbl	39.14	43.66
Recycle ratio (2) - three-year average	times	1.8	1.6

Parex Colombia Total Proved plus Probable Three-Year Average		F&D	FD&A
Reserve additions	mmbbl	7.7	12.7
Capital (1)	$000s	171,654	424,641
Future development capital	$000s	85,106	85,106
F&D	$/bbl	33.51	40.25
Recycle ratio (2) - three-year average	times	2.1	1.7
(1) Total capital expenditures from 2009 to 2011. Capital expenditures for 2009 are disclosed under previous Canadian GAAP prior to the adoption of IFRS. (2) Recycle ratio was calculated using 2011 operating netback of $69.48 per barrel.

The GLJ Report was prepared in accordance with definitions, standards and procedures contained in the Canadian Oil and Gas Evaluation 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 March 30, 2012.

Colombia Exploration Update

The Java exploration prospect is located on Block LLA-16 between the Kona field and the Sulawesi field along the Kona fault trend. The Company spud Java-1 on February 26, 2012 and reached total depth of approximately 12,500 feet on March 7, 2012. The C7 and Gacheta formations have been interpreted as potentially oil-bearing, based on cuttings and logging while drilling. Parex expects to case and test Java-1 during March 2012 to confirm fluid content and reservoir productivity. Subject to test results, we expect to skid the existing drilling and completion rig and drill an appraisal well, Java-2.

Immediately south of the Sulawesi field is the Malawi prospect which is scheduled to be drilled after the Java prospect during the second quarter of 2012.

North of the Supremo prospect and on the same fault trend, Merida-1 was drilled and cased in the fourth quarter of 2011. Merida-1 is expected to have similar reservoir characteristics as the previously drilled Supremo wells and Parex plans to complete and test Merida-1 during the second quarter of 2012.

On Block LLA-20, the Company has drilled and cased the Cumbre-1 well to a total depth of 9,500 feet. The C7 and Gacheta formations have been interpreted as potentially oil-bearing, based on wireline logs and cuttings. Parex expects to test Cumbre-1 during March 2012 to confirm fluid content and reservoir productivity.

On Block LLA-30, Parex plans start its 2012 exploration program with the Adalia prospect. Prospective formations are the C3, C5 and C7 to a maximum drilling depth of approximately 5,000 feet. The Adalia-1 well is expected to spud in April 2012 and is planned to be followed by two additional LLA-30 exploration prospects. In order to deliver its 2012 Block LLA-30 exploration program, Parex' requires surface access prior to the start of the rainy season. At present, pre-drill activity of the Adalia location has been delayed due to on-going civil disruptions in the eastern Llanos region.

As previously reported, the Las Maracas-2 side-track well on the Los Ocarros Block was drilled to the Mirador Formation and with formation damage tested rates of up to 938 bopd of 37° API oil under natural flow. Parex has been designated contract operator of the Los Ocarros Block. For safety reasons, we have elected not to conduct simultaneous production operations during construction of the long-term production facility on the existing lease as inherited by the prior operator. Parex expects to place the Las Maracas-2 sidetrack on a long-term production test within 6-8 weeks. Subject to regulatory approval in the second quarter of 2012, Parex expects to drill the first follow-up well to appraise the discovery.

Colombia Operations Update

The Kona-15 well was drilled to test the southern limit of the Gacheta Formation. There were no Gacheta Formation reserves ascribed to the Kona-15 location in the GLJ Report. The well encountered water bearing reservoir below the oil-water contact and will be converted to a water disposal well. The next wells scheduled to be drilled on the Block LLA-16 Kona field are Kona-14 and Kona-16. Kona-14 is positioned to test the northern limit of the Gacheta and Une formations. Kona-16 is a Mirador delineation well targeting a southern extension of the field. Currently, Parex is actively recompleting Kona wells in order to optimize field production.

Sulawesi-1 and Sulawesi-2 are currently producing from the Mirador and C7 formations respectively. During the second quarter of 2012 Parex expects to test the Gacheta Formation in the Sulawesi-4 well and, if unsuccessful, will be converted to a water disposal well. Following the commissioning of a water disposal well, the currently shut-in Sulawesi-3 is expected to produce from the Mirador Formation.

Current production is approximately 12,500 bopd and as previously reported Parex expects first-quarter 2012 production to average approximately 12,000-13,000 bopd. Current civil disruptions in the eastern Llanos region have not impacted production; however as noted above, pre-drill activity on Block LLA-30 has been limited.

Trinidad Exploration Update

We had previously reported that the Firecrown-1 well, located on the onshore Moruga Block, had reached a qualifying depth of 10,300 feet and penetrated the primary and secondary objectives in the Herrera Formation, however that we were unable to properly evaluate these objectives due to non-repairable cement conditions in the well. The Company has imported a larger and more modern rig to re-enter Firecrown-1 and sidetrack the well to evaluate both objectives. The rig has re-entered the well and is currently drilling. Parex expects to case and test Firecrown-1 ST2 by the end of April 2012.

The Green Hermit prospect is located on the Moruga Block between the Carapal Ridge field and the Snowcap fault block. The Company spud Green Hermit-1 on March 8, 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 second quarter of 2012. Construction activities are on-going.

First-Half 2012 Drilling Schedule

A summary of the near-term exploration and appraisal drilling program is provided below:

#	Prospect		Block		Expected Timing
1	Kona-14		LLA-16		Spud March 2012
2	Kona-16		LLA-16		Spud Q2 2012
3	Java-1		LLA-16		Spud Feb 26. TD March 7. Case and test.
4	Merida-1		LLA-16		Testing Q2 2012
5	Malawi-1		LLA-16		Spud Q2 2012
6	Cumbre-1		LLA-20		Spud Feb 21. TD March 2. Case and test.
7	Las Maracas		Los Occaros		Produce LM-2ST and spud appraisal well Q2 2012
8	Adalia-1		LLA-30		Spud Q2 2012
9	Earning Well-1		El Eden		Spud Q2 2012
10	Firecrown-1 ST2		Trinidad Moruga		Drilling sidetrack
11	Green Hermit-1		Trinidad Moruga		Drilling
12	Tigre-1		Trinidad CRB Deep		Spud Q2 2012. Constructing

For 2012 Parex maintains its previously provided guidance that capital expenditure plans in Colombia and Trinidad of $230-$275 million and exit rate production of approximately 17,000 bopd, net before royalty.

Conference Call Information

Parex will host a conference call to discuss these results on Wednesday, March 14, 2012 at 10:30 am MST (12:30 pm EST). Media, analysts and investors wishing to participate can access it by calling 1-866-696-5910, pass code: 3726765.

The live audio will be carried at:

http://bellwebcasting.ca/audience/index.asp?eventid=58285158

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 814,000 acre holdings in the Llanos Basin of Colombia and its 223,500 acre holdings onshore Trinidad. Parex is headquartered in Calgary, Canada.

Non-GAAP Terms

Funds flow used in, or from operations, working capital, adjusted net income, operating netback per barrel and net debt may from time to time be used by the Company, but do not have any standardized meaning under IFRS 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, or from 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 but may not include the change in non-cash working capital from one period to the next. Adjusted net income is determined by adding back any losses or deducting any gains associated with the Company's derivative financial liability. Operating netback per barrel equals sales revenue, less royalties, production expense and transportation expense, divided by total equivalent sales volume. Total net debt is a non-GAAP measure defined as the sum of working capital less the convertible debentures (excluding the derivative financial liability associated with the convertible debentures). 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.

Reserve Advisory

"Proved" reserves are those reserves that can be estimated with a high degree of certainty to be recoverable. It is likely that the actual remaining quantities recovered will exceed the estimated proved reserves.

"Probable" reserves are those additional reserves that are less certain to be recovered than proved reserves. It is equally likely that the actual remaining quantities recovered will be greater or less than the sum of the estimated proved plus probable reserves.

"Possible" reserves are those additional reserves that are less certain to be recovered than probable reserves. There is a 10 percent probability that the quantities actually recovered will equal or exceed the sum of proved plus probable plus possible serves. It is unlikely that the actual remaining quantities recovered will exceed the sum of the estimated proved plus probable plus possible reserves.

All evaluations and reviews of future net cash flow are stated prior to any provision for interest costs or general and administrative costs and after the deduction of estimated future capital expenditures for wells to which reserves have been assigned. It should not be assumed that the estimated future net cash flow shown below are representative of the fair market value of the Company's properties. There is no assurance that such price and cost assumptions will be attained, and variances could be material. The recovery and reserve estimates of crude oil reserves provided are estimates only, and there is no guarantee that the estimated reserves will be recovered. Actual crude oil reserves may be greater or less than the estimates provided.

Readers are cautioned that test results disclosed herein are not necessarily indicative of long-term performance or of ultimate recovery.

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 and exit rate production; expected production in the first quarter 2012; quarter over quarter growth; timing of drilling and completion; planned capital expenditures, the timing thereof and the source of funding for such capital expenditures; 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; the factors described under "Risk Factors" in the Company's annual information form for the year ended December 31, 2010; 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: 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' 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.