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1Corporate Presentation | March 2017Corporate Presentation | March 2017 11Corporate Presentation | March 2017AGM Presentation | May 2017 1
Solid Foundation.
Building New Platforms.
Annual General Meeting - May 11, 2017
www.parexresources.com | TSX:PXT | AGM Presentation | May 2017
2Corporate Presentation | March 2017Corporate Presentation | March 2017 22Corporate Presentation | March 2017AGM Presentation | May 2017 2
PAREX BOARD
Wayne FooBoard Chair
Curtis Bartlett
Lisa Colnett Robert
EngbloomBob
MacDougallGlenn
McNamaraRon Miller Dave Taylor
CEOPaul Wright
Retiring Board Members
Norm McIntyre (Board Chair)
John Bechtold (Operations Committee Chair)
3Corporate Presentation | March 2017Corporate Presentation | March 2017 33Corporate Presentation | March 2017AGM Presentation | May 2017 3
PAREX LEADERSHIP TEAM
Dave TaylorPresident & CEO
Stu Davie VP Corporate
Services
Ken Pinsky CFO & Corporate
Secretary
Mike KruchtenVP Capital Markets
& Corporate Planning
Ryan Fowler Sr. VP Exploration
& Business Development
Eric Furlan Sr. VP
Engineering
Lee DiStefanoPresident &
Country Manager Parex Colombia
Organization is built to accommodate
growth and provide bench strength
4Corporate Presentation | March 2017Corporate Presentation | March 2017 44Corporate Presentation | March 2017AGM Presentation | May 2017 4
BUILDING A BUSINESS
1. Get assets
2. Explore
3. Build cash flow
4. Expand asset base
5. Develop staff
6. Be sustainable
Shareholder value
Source: Latam Oil, June 11, 2013
5Corporate Presentation | March 2017Corporate Presentation | March 2017 55Corporate Presentation | March 2017AGM Presentation | May 2017 5
ANNUAL THEMES
Year Theme Delivery
2017 Solid Foundation; Building New Platforms Goal: Establish new core in Magdalena Basins & grow Llanos
2016 Sustained Performance & Expanding Potential Tested new concepts while maintaining Balance Sheet strength
2015 Leveraging Portfolio Flexibility Increased financial strength & growth options
2014 Building The Runway Expanded 3P 104 mmbbls & RLI 10.7 years
2013 Achieve Sustainability Achieved 2P RLI > 5 years
6Corporate Presentation | March 2017Corporate Presentation | March 2017 66Corporate Presentation | March 2017AGM Presentation | May 2017 6
CHARTING THE PATH TO 50,000 BOPD
-
4
8
12
16
20
24
28
32
36Q
1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
E
AV
ERA
GE
DA
ILY
PR
OD
UC
TIO
N (
MB
OE/
D)
RLI
2013 2014 2015 2016 2017
5 7 8 10 n.a
* Refer to February 6, 2017 New Release “ Parex announces executive and board of directors appointments”
7Corporate Presentation | March 2017Corporate Presentation | March 2017 77Corporate Presentation | March 2017AGM Presentation | May 2017 7
WE CONTINUE TO ADD VALUE …
15,000
20,000
25,000
30,000
2014 2015 2016
BO
E/D
Production
40
60
80
100
120
2014 2015 2016
MM
BO
E
2P Reserves
5
8
11
2014 2015 2016
YEA
RS
2P Reserve Life Index
$0.5
$1.5
$2.5
2014 2015 2016
BIL
LIO
N (
CA
D)
Market Capitalization
8Corporate Presentation | March 2017Corporate Presentation | March 2017 88Corporate Presentation | March 2017AGM Presentation | May 2017 8
TOTAL RETURNS: PXT VS. TSX & ENERGY INDEX
*PXT Share Price : C$9.97 at Jan 4/16, C$17.12 at Jan 3/17 & C$16.58 at May 10/17
PXT*
TSX
TTEN
394
90
125
Top 10 ReturnTSX Energy Index
PXT: C$4.29At June 11, 2013
9Corporate Presentation | March 2017Corporate Presentation | March 2017 99Corporate Presentation | March 2017AGM Presentation | May 2017 9
0
20
40
60
80
100
120
1970
1980
1990
2000
2010
2020
CRU
DE O
IL P
RICE
(USD
/BBL
)
Forecast
FUNDAMENTAL VALUES• Global Oil Production is heading towards more oil on oil competition where producers with
lower costs, better capital efficiencies and healthy balance sheets are the ultimate survivors.
WTI $/bbl (nominal)
WTI $/bbl (CPI adjusted)
Source: EIA Short-Term Energy Outlook, May 2017 & FactSet Futures, May 2017
10Corporate Presentation | March 2017Corporate Presentation | March 2017 1010Corporate Presentation | March 2017AGM Presentation | May 2017 10
WHY FOCUS ON COLOMBIA?
1. Multiple play types & large resource potential in proven basins (path to 50,000 boe/d)
2. Strong operational capabilities
3. Providing shareholder returns: FD&A, recycle ratio & pay-back
4. Able to position for peace dividend
Building on track record of success
11Corporate Presentation | March 2017Corporate Presentation | March 2017 1111Corporate Presentation | March 2017AGM Presentation | May 2017 11
SUMMARY: EXCEL AT WHAT WE DO
CORE COMPETENCIES
1. Identify and acquire large prospective resources.
2. Focus on being a low cost operator.
3. Engage stakeholders.
Bacano-3, Cabrestero Block
12Corporate Presentation | March 2017Corporate Presentation | March 2017 1212Corporate Presentation | March 2017AGM Presentation | May 2017 12
-
5,000
10,000
15,000
20,000
25,000
30,000
35,000
Pro
du
ctio
n (b
oe/
d)
Petro Andina Parex
LOOK BACK – SHAREHOLDER VALUE
Still Finding Big Oil Fields … Now Colombia’s 3th largest Producer
PETRO ANDINA – LEGACY OF GROWTH
PAR
13Corporate Presentation | March 2017Corporate Presentation | March 2017 1313Corporate Presentation | March 2017AGM Presentation | May 2017 13
SUMMARY: EXCEL AT WHAT WE DO
CORE COMPETENCIES
1. Identify and acquire large prospective resources.
2. Focus on being a low cost operator.
3. Engage stakeholders.
Bacano-3, Cabrestero Block
14Corporate Presentation | March 2017Corporate Presentation | March 2017 1414Corporate Presentation | March 2017AGM Presentation | May 2017 14
MANAGING NETBACKSControllable Costs Trend
Controllable Costs: Differential, Transportation, Opex, G&A
$10
$20
$30
$40
$50
Q4 2014 Q1' 17
$/bo
e
Q4 2014 Q1 2017 Delta
Brent $/bbl $77.07 $54.61 ($22.46)
FFO/boe $20.70 $22.47 $1.77
2015 2016
15Corporate Presentation | March 2017Corporate Presentation | March 2017 1515Corporate Presentation | March 2017AGM Presentation | May 2017 15
SUMMARY: EXCEL AT WHAT WE DO
CORE COMPETENCIES
1. Identify and acquire large prospective resources.
2. Focus on being a low cost operator.
3. Engage stakeholders.
Bacano-3, Cabrestero Block
16Corporate Presentation | March 2017Corporate Presentation | March 2017 1616Corporate Presentation | March 2017AGM Presentation | May 2017 16
SCHOOL – AGUAS BLANCAS
Modernized facilities & increased capacity
17Corporate Presentation | March 2017Corporate Presentation | March 2017 1717Corporate Presentation | March 2017AGM Presentation | May 2017 1717
THANK YOU FOR YOUR SUPPORT
18Corporate Presentation | March 2017Corporate Presentation | March 2017 1818Corporate Presentation | March 2017AGM Presentation | May 2017 18
ADVISORIESHOW TO REACH USThis presentation is provided for informational purposes only as of May 11, 2017, is not complete, and
may not contain certain material information about Parex Resources Inc. ("Parex" or the "Company"),including important disclosures and risk factors associated with an investment in Parex. Thispresentation does not take into account the particular investment objectives or financial circumstancesof any specific person who may receive it and does not constitute an offer to sell or a solicitation of anoffer to buy any security in Canada, the United States or any other jurisdiction. The contents of thispresentation have not been approved or disapproved by any securities commission or regulatoryauthority in Canada, the United Sates or any other jurisdiction, and Parex expressly disclaims any dutyon Parex to make disclosure or any filings with any securities commission or regulatory authority,beyond that imposed by applicable laws.
Forward-Looking Statements and FOFI
Certain information regarding Parex set forth in this document contains forward-looking statementsthat involve substantial known and unknown risks and uncertainties. The use of any of the words"plan", "expect", “prospective”, "project", "intend", "believe", "should", "anticipate", "estimate" orother similar words, or statements that certain events or conditions "may" or "will" occur are intendedto identify forward-looking statements. Such statements represent Parex' internal projections,estimates or beliefs concerning, among other things, future growth, results of operations, production,future capital and other expenditures (including the amount, nature and sources of funding thereof),plans for and results of drilling activity, business prospects and opportunities. These statements areonly predictions and actual events or results may differ materially. Although the Company’smanagement believes that the expectations reflected in the forward-looking statements arereasonable, it cannot guarantee future results, levels of activity, performance or achievement sincesuch expectations are inherently subject to significant business, economic, competitive, political andsocial uncertainties and contingencies. Many factors could cause Parex' actual results to differmaterially 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; theCompany's vision, strategy and values; Parex' estimated 2017 capital budget, including the expectedallocation of such budget to the number of wells and capital expenditures for each ofdevelopment/appraisal in existing fields, exploration, appraisal and maintenance;
PAREX RESOURCES INC.
2700 Eighth Avenue Place, West Tower
585 8th Av SW Calgary
AB T2P 1G1 Canada
Tel: 403-265-4800
Fax: 403-265-8216
Email: [email protected]
Website: www.parexresources.com
MIKE KRUCHTEN
Vice President, Corporate Planning & Investor Relations
19Corporate Presentation | March 2017Corporate Presentation | March 2017 1919Corporate Presentation | March 2017AGM Presentation | May 2017 19
ADVISORIESthe Company's forecasted 2017 average production range; the Company's estimated average daily production for Q2 2017, full year 2017 and full year 2018; the Company's planned capital program,including anticipated amounts focused on existing discoveries and the appraisal programs and the timing of drilling key exploration prospects, seismic programs and development drilling; anticipated cashflow, cash flow per share, funds flow from operations netback, capital expenditures, and funds flow from operations for 2017; the Company's exploration, development and appraisal program for 2017including anticipated number and type of wells, drill ready prospects, the focus of development/appraisal drilling and the potential for drilling of additional follow-up appraisal wells and facilities in 2017;exploration prospects; the Company's exploration schedule; the Company's drilling plans and production capability/potential; anticipated drilling locations, including the Company's delineation and drillingplans; the Company's plans to target additional growth opportunities; the Company's future plans for its business, including plans to complete further acquisitions and increase production; financial andbusiness prospects and financial outlook; and activities to be undertaken in various areas. Statements relating to "reserves" or "resources" are forward-looking statements, as they involve the impliedassessment, based on estimates and assumptions that the reserves and resources described exist in the quantities predicted or estimated and can be profitably produced in the future.
• These forward-looking statements are subject to numerous risks and uncertainties, including but not limited to, the impact of general economic conditions in Canada and Colombia; industry conditionsincluding changes in laws and regulations including adoption of new environmental laws and regulations, and changes in how they are interpreted and enforced, in Canada and Colombia; competition; lack ofavailability of qualified personnel; the results of exploration and development drilling and related activities; risks related to obtaining required approvals of regulatory authorities, in Canada and Colombia andpartner and community approvals in Colombia; risks associated with negotiating with foreign governments as well as country risk associated with conducting international activities; volatility in market pricesfor oil; fluctuations in foreign exchange or interest rates; environmental risks; changes in income tax laws, tax rates and/or incentive programs relating to the oil industry; changes to pipeline capacity; abilityto access sufficient capital from internal and external sources; risks related to the lawsuit brought in Texas against Parex and certain foreign subsidiaries; failure of counterparties to perform under the termsof their contracts; and other factors, many of which are beyond the control of the Company. Readers are cautioned that the foregoing list of factors is not exhaustive. Additional information on these andother 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 upon assumptions which management believes to be reasonable, the Company cannot assure investors that actual results willbe consistent with these forward-looking statements. With respect to forward-looking statements contained in this document, Parex has made assumptions regarding, among other things: currentcommodity prices and royalty regimes; availability of skilled labour; timing and amount of capital expenditures; future exchange rates; the price of oil, including the anticipated Brent oil price; the impact ofincreasing competition; conditions in general economic and financial markets; availability of drilling and related equipment; effects of regulation by governmental agencies; receipt of partner, regulatory andcommunity approvals; royalty rates; future operating costs; effects of regulation by governmental agencies; uninterrupted access to areas of Parex' operations and infrastructure; recoverability of reservesand future production rates; the status of litigation; timing of drilling and completion of wells; on-stream timing of production from successful exploration wells; operational performance of non-operatedproducing fields; pipeline capacity; that Parex will have sufficient cash flow, debt or equity sources or other financial resources required to fund its capital and operating expenditures and requirements asneeded; that Parex' conduct and results of operations will be consistent with its expectations; that Parex will have the ability to develop it's oil and gas properties in the manner currently contemplated;current or, where applicable, proposed industry conditions, laws and regulations will continue in effect or as anticipated as described herein; that the estimates of Parex' reserves volumes and theassumptions related thereto (including commodity prices and development costs) are accurate in all material respects; that Parex will be able to obtain contract extensions or fulfill the contractual obligationsrequired to retain its rights to explore, develop and exploit any of its undeveloped properties; 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 perspectiveon 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. The forward-looking statements contained in this presentation are expresslyqualified by this cautionary statement.
20Corporate Presentation | March 2017Corporate Presentation | March 2017 2020Corporate Presentation | March 2017AGM Presentation | May 2017 20
ADVISORIES• This document may contain a financial outlook. Such financial outlook has been prepared by Parex' management to provide an outlook of the Company's activities and results. The financial outlook has been
prepared based on a number of assumptions including the assumptions discussed above and assumptions with respect to the costs and expenditures to be incurred by the Company, capital equipment andoperating costs, foreign exchange rates, taxation rates for the Company, general and administrative expenses and the prices to be paid for the Company's production. Management does not have firmcommitments for all of the costs, expenditures, prices or other financial assumptions used to prepare the financial outlook or assurance that such operating results will be achieved and, accordingly, thecomplete financial effects of all of those costs, expenditures, prices and operating results are not objectively determinable. The actual results of operations of the Company and the resulting financial resultswill likely vary from the amounts set forth in the analysis presented in this presentation, and such variation may be material. The Company and its management believe that the financial outlook has beenprepared on a reasonable basis, reflecting the best estimates and judgments, and represent, to the best of management's knowledge and opinion, Parex's expected expenditures and results of operations.However, because this information is highly subjective and subject to numerous risks including the risks discussed above, it should not be relied on as necessarily indicative of future results. Except asrequired by applicable securities laws, Parex undertakes no obligation to update such financial outlook.
Oil and Gas Information
• The estimates of Parex' December 31, 2016 reserves set forth in this presentation have been prepared by GLJ Petroleum Consultants Ltd. ("GLJ") as of December 31, 2016 with a preparation date of February6, 2017 (the "GLJ 2016 Report") in accordance with National Instrument 51-101 – Standards of Disclosure for Oil and Gas Activities ("NI 51-101") and the Canadian Oil and Gas Evaluations Handbook (the"COGEH") and using GLJ's forecast prices and costs as at January 1, 2017. The estimates of Parex' December 31, 2015 reserves set forth in this presentation have been prepared by GLJ as of December 31,2015 with a preparation date of February 5, 2016 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2016. The estimates of Parex' December 31, 2014reserves set forth in this presentation have been prepared by GLJ as of December 31, 2014 with a preparation date of February 13, 2015 in accordance with NI 51-101 and the COGEH and using GLJ's forecastprices and costs as at January 1, 2015. The estimates of Parex' December 31, 2013 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2013 with a preparation date ofFebruary 20, 2014 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2014. The estimates of Parex' December 31, 2012 reserves set forth in thispresentation have been prepared by GLJ as of December 31, 2012 with a preparation date of February 28, 2013 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as atJanuary 1, 2013. The estimates of Parex' December 31, 2011 reserves set forth in this presentation have been prepared by GLJ as of December 31, 2011 with a preparation date February 10, 2012 inaccordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2012 . The estimates of Parex' December 31, 2010 reserves set forth in this presentation have beenprepared by GLJ as of December 31, 2010 with a preparation date of January 11, 2011 in accordance with NI 51-101 and the COGEH and using GLJ's forecast prices and costs as at January 1, 2011.
• 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 thesum of proved plus probable plus possible reserves.
• Estimates of the net present value of the future net revenue from Parex' reserves do not represent the fair market value of Parex' reserves. The estimates of reserves and future net revenue from individualproperties or wells may not reflect the same confidence level as estimates of reserves and future net revenue for all properties and wells, due to the effects of aggregation.
• This presentation contains certain oil and gas metrics, including F&D, FD&A, FD&A/boe, reserves life index (or RLI), operating netbacks, cash netbacks, funds flow from operations netback, and recycle ratios,which do not have standardized meanings or standard methods of calculation and therefore such measures may not be comparable to similar measures used by other companies and should not be used tomake comparisons. Such metrics have been included herein to provide readers with additional measures to evaluate the Company's performance; however, such measures are not reliable indicators of thefuture performance of the Company and future performance may not compare to the performance in previous periods and therefore such metrics should not be unduly relied upon. Management uses theseoil and gas metrics for its own performance measurements and to provide investors with measures to compare the Company's operations over time.
21Corporate Presentation | March 2017Corporate Presentation | March 2017 2121Corporate Presentation | March 2017AGM Presentation | May 2017 21
ADVISORIESReaders are cautioned that the information provided by these metrics, or that can be derived from the metrics presented herein, should not be relied upon for investment or other purposes. A summary ofthe calculations of such metrics are as follows:
o FD&A costs represent the costs of property acquisition, exploration, and development incurred. The aggregate of the exploration and development costs incurred in the most recent financial yearand the change during that year in estimated future development costs generally will not reflect total finding and development costs related to reserves additions for that year.
o FD&A costs are calculated as capital expenditures plus change in F&D costs. FD&A per boe is calculated as FD&A costs divided by reserves additions for the applicable period.
o Reserves life index is calculated as proved plus probable reserves divided by annualized fourth quarter production.
o Recycle ratio is calculated as cash netback per boe (or Funds Flow From Operations per boe) divided by F&D or FD&A, as applicable.
o Cash netback per boe (or Funds Flow From Operations netback per boe) is calculated as Funds Flow From Operations divided by production for the period.
o Operating netback is calculated as oil & gas revenue less expenses (royalties, production and transportation) divided by production for the period.
• "BOEs" may be misleading, particularly if used in isolation. A BOE conversion ratio of six thousand cubic feet of natural gas to one barrel of oil equivalent (6 mcf: 1 bbl) is based on an energy equivalencyconversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to naturalgas is significantly different from the energy equivalency of 6:1, utilizing a conversion on a 6:1 basis may be misleading as an indication of value.
• All of Parex’ crude oil reserves disclosed herein are located in Colombia. The Company does have light, medium and heavy crude oil and natural gas liquids. The recovery and reserve estimates of crude oilreserves provided in this document 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. All evaluations and reviews of future net revenue contained in GLJ's reports are stated prior to any provision for interest costs or general and administrative costs and after thededuction of royalties, development costs, production costs, well abandonment costs and estimated future capital expenditures for wells to which reserves have been assigned.
• This presentation discloses drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) possible locations. Proved locations, probable locations and possible locations are derivedfrom the GLJ 2016 Report and account for drilling locations that have associated proved and/or probable and/or possible reserves, as applicable. Of the 195 drilling locations identified herein, 74 are provedlocations, 83 are probable locations and 38 are possible locations. The drilling locations on which the Company actually drills wells will ultimately depend upon the availability of capital, regulatory approvals,seasonal restrictions, oil prices, costs, actual drilling results, additional reservoir information that is obtained and other factors.
• Further, this presentation includes estimates of pay thickness, which are considered to be anticipated results or information that indicate the potential value or quantities of resources under NI 51-101. Suchestimates have been prepared internally by Parex by a non-independent qualified reserves evaluator and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Therisks associated with these estimates include, but are not limited to, the risk that Parex' exploration and development drilling and related activities may provide different results; the risk that Parex mayencounter unexpected drilling results; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas; delays in anticipated timing of drilling andcompletion of wells; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and the risk that if any resources are discovered that it will not becommercially viable to produce any portion thereof. There is no certainty that Parex will achieve the estimated results or that any portion of the resources will be discovered. If discovered, there is also nocertainty that it will be commercially viable to produce any portion of the resources.
22Corporate Presentation | March 2017Corporate Presentation | March 2017 2222Corporate Presentation | March 2017AGM Presentation | May 2017 22
ADVISORIES• Further, this presentation includes estimates of pay thickness, which are considered to be anticipated results or information that indicate the potential value or quantities of resources under NI 51-101. Such
estimates have been prepared internally by Parex by a non-independent qualified reserves evaluator and have not been prepared or reviewed by an independent qualified reserves evaluator or auditor. Therisks associated with these estimates include, but are not limited to, the risk that Parex' exploration and development drilling and related activities may provide different results; the risk that Parex mayencounter unexpected drilling results; the occurrence of unexpected events involved in the exploration for, and the operation and development of, oil and gas; delays in anticipated timing of drilling andcompletion of wells; geological, technical, drilling and processing problems and other difficulties in producing petroleum reserves; and the risk that if any resources are discovered that it will not becommercially viable to produce any portion thereof. There is no certainty that Parex will achieve the estimated results or that any portion of the resources will be discovered. If discovered, there is also nocertainty that it will be commercially viable to produce any portion of the resources.
• Certain information in this document may constitute "analogous information" as defined in NI 51-101. Such information includes production estimates, drilling results, test rates, reserves estimates and otherinformation retrieved from other publicly available sources, including but not limited to IHS. Management of Parex believes the information is relevant as it may help to define the reservoir characteristicsand production profile of lands in which Parex may hold an interest. Parex is unable to confirm that the analogous information was prepared by a qualified reserves evaluator or auditor and is unable toconfirm that the analogous information was prepared in accordance with NI 51-101. Such information is not an estimate of the production, reserves or resources attributable to lands held or to be held byParex and there is no certainty that the production, reserves or resources data and economic information for the lands held or to be held by Parex will be similar to the information presented herein. Thereader is cautioned that the data relied upon by Parex may be in error and/or may not be analogous to such lands held or to be held by Parex.
• Certain other information contained in this presentation has been prepared by third-party sources, which information has not been independently audited or verified by Parex. No representation or warranty,express or implied, is made by Parex as to the accuracy or completeness of the information contained in this document, and nothing contained in this presentation is, or shall be relied upon as, a promise orrepresentation by Parex.
• This presentation contains references to type well production and economics, which are derived, at least in part, from available information respecting the well economics of other companies and, as such,there is no guarantee that Parex will achieve the stated or similar results, capital costs and return costs representative per well.
• References in this presentation to initial production test rates, initial "flow" rates, initial flow testing, and "peak" rates are useful in confirming the presence of hydrocarbons, however such rates are notdeterminative of the rates at which such wells will commence production and decline thereafter and are not indicative of long term performance or of ultimate recovery. While encouraging, investors arecautioned not to place reliance on such rates in calculating the aggregate production for Parex. Parex has not conducted a pressure transient analysis or well-test interpretation on the wells referenced in thispresentation. As such, all data should be considered to be preliminary until such analysis or interpretation has been done.
Financial Matters
• The Company discloses several financial measures that do not have any standardized meaning prescribed under International Financial Reporting Standards ("IFRS"). These financial measures includeoperating netbacks, cash netbacks, funds flow netbacks and funds flow from operations. Management believes that these financial measures are useful supplemental information to analyze operatingperformance and provide an indication of the results generated by the Company’s principal business activities. Investors should be cautioned that these measures should not be construed as an alternative tonet income or other measures of financial performance as determined in accordance with IFRS. Parex’s method of calculating these measures may differ from other companies, and accordingly, they may notbe comparable to similar measures used by other companies. Please see the Company’s most recent Management’s Discussion and Analysis, which is available at www.sedar.com for additional informationabout these financial measures.