Parex Resources Inc. announced drilling program in 2017, with 23 wells drilled in the Bacano-Jacana-Tigana trend and 21 wells currently producing oil. Of the 21 oil wells, 10 wells were successfully drilled outside the areas included in the GLJ Petroleum Consultants Ltd. ("GLJ") December 31, 2016 proved plus probable reserves assessment prepared for the company. In fourth quarter of 2017, delineation drilling targeted the Tigana Sur Oeste and Tigana Norte areas. New wells added to production (approximate gross rates as at January 9, 2018) include: Tigana Sur Oeste-2: 1,050 barrels of oil per day ("bopd"); Tigana Sur Oeste-3: 1,170 bopd; Tigana Sur Oeste-7: 650 bopd; Tigana Norte-3: 1,800 bopd; Tigana Norte-4: 1,850 bopd; Tigana Norte-5: testing. Through 2018, The company expects to drill approximately a total of 20 development, appraisal and exploration wells. Cabrestero (WI 100%): The appraisal well, Bacano-6, is currently being drilled and The company expects to reach total depth by January 15, 2018. Bacano-6 is a long-reach well (approximately 9,800 feet vertical section) drilling from the Bacano-2 pad. The well is currently at 12,645 feet with a planned total depth of 15,300 feet. Capachos (WI 50%): The Capachos Sur-2 well was spud on November 12, 2017 and is currently conditioning the drill hole to install intermediate casing at approximately 15,360 feet with a planned total depth of 16,700 feet. The Capachos-2 well is producing at a restricted rate of approximately 1,000 bopd and The company expects to increase the rate after commissioning the permanent production facilities during third quarter of 2018. VMM-11 (WI 100%): The Iguazu-1 exploration well was drilled and abandoned.

For the fourth quarter, the company expected production averaged 39,000 barrels of oil equivalent per day ("boe/d") and that the Company's 2017 debt adjusted production per share annual growth exceeded 25% compared to 2016.

For the first quarter, the company average production to exceed 40,000 boe/d.