November 13, 2012 Parex Resources Announces La Casona Light Oil Discovery

Parex Resources Inc. ("Parex", the "Company" or "we") (TSX:PXT), a company focused on oil exploration and production in Colombia and Trinidad is pleased to announce a light oil discovery, La Casona-1 on the El Eden Block. We are also providing financial and operating results for the three months ended September 30, 2012 ("third quarter"), including an oil discovery in the Las Maracas Gacheta Formation. Furthermore, with October production of 12,400 bopd, Parex has made significant progress towards its 2012 exit rate guidance of 13,000-14,000 barrels of oil per day ("bopd"). An update of the Company's operations is also provided below. All amounts herein are in United States dollars unless otherwise stated.

Operational and Financial Highlights:

--  Confirmed new oil discovery with rate restricted production test of
    1,300 bopd of 36 degrees API light oil and 4.0 million cubic feet per
    day ("MMCFD") of natural gas at La Casona-1; 
--  Achieved October 2012 production of 12,400 bopd, a 14 percent increase
    over the third quarter production of 10,874 bopd;  
--  Realized quarterly Brent referenced sales price of $107.53 per barrel
    ("bbl") and an operating netback of $70.57 per bbl; 
--  Generated third quarter funds flow from operations of $42.0 million
    ($0.39 per share basic) and adjusted net income of $7.5 million ($0.07
    per share basic). Funds flow in the quarter was reduced because the
    current tax provision was increased by $15 million over the previous
    quarter due to continued strong operating netbacks, production growth
    and exploration success; 
--  Participated in and cased 5 wells (2.5 net) in Colombia during the third
    quarter including one new pool discovery and two new oil wells(1); 
--  Increased the current borrowing base of a reserve base facility from $50
    million to $75 million. This reserve based facility was undrawn at
    September 30, 2012; and 
--  Continued to increase monthly production with October production of
    approximately 12,400 bopd primarily driven by production increases from
    Kona, Las Maracas, Maniceno and Tua fields. Las Maracas-5 and Tua-3 are
    expected to be added to production prior to year-end 2012.



(1) Third quarter 2012 wells were: Oil discovery: Las Maracas-3 Gacheta Formation; Oil wells: Las Maracas-4 & Kitaro-2; Currently testing: Akira-1; Suspended well: Tua-2 (pending remediation).

2012 Guidance Update

For the fourth quarter of 2012, Parex currently plans a self-funding capital investment program of approximately $45-$50 million and a 2012 exit rate of 13,000-14,000 bopd.

In early 2013, after evaluating the results of ongoing exploration and appraisal activity, and finalizing partner budgets, Parex expects to be in a position to update shareholders on 2013 capital expenditure plans and production guidance.

Capital Expenditure Activity

Parex expects that for the remainder of 2012, it will fund Colombian capital activity based on (gross) three drilling rigs and two service rigs (approximately 60 percent working interest). In Trinidad, the Company's capital program will be based on one service rig (83.8 percent working interest) and the commencement of a 2D seismic program (50 percent working interest).

Remainder of 2012 Planned Drilling Activity:

Drilling Type                 Status         Block  Interest      Field/Well
Appraisal                   Drilling        LLA-34        45%          Tua-3
Appraisal                   Pre-spud        LLA-34        45%          Max-2
Appraisal                    Testing   Los Ocarros        50%  Las Maracas-5
Appraisal                   Pre-spud   Los Ocarros        50%  Las Maracas-6
Appraisal / Water Disposal  Pre-spud   Los Ocarros        50%  Las Maracas-7
Exploration                  Testing       El Eden        60%    La Casona-1
Exploration                 Pre-spud        LLA-16       100%       Kona Sur
Exploration                 Pre-spud        LLA-30       100%       Adalia-1



Parex is negotiating to secure a 1,000 hp rig to commence dry season exploration drilling on blocks LLA-29, LLA-30 and LLA-57.

Q3 Results Summary

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 and on the Company's website at All amounts herein are in United States dollars unless otherwise stated.

                                                               Three Months 
                                            Three Months ended   ended June 
                                               September 30(1)        30(1) 
                                               2012       2011         2012 
Average daily production                                                    
  Oil (bbl/d)                                10,874      7,031       10,389 
Average company produced daily sales                                        
  Oil (bbl/d)                                10,833      6,058       11,556 
  Oil Inventory - end of period (barrels)   139,100    179,500      164,800 
Operating netback ($/bbl)                                                   
  Oil revenue                                107.53      97.64       107.54 
  Royalties                                   (8.07)     (8.04)       (8.43)
  Net revenue                                 99.46      89.60        99.11 
  Production expense                          (9.27)     (6.15)       (6.82)
  Transportation expense                     (19.62)    (16.05)      (19.01)
Operating netback                             70.57      67.40        73.28 
Financial ($000s except per share amounts)                                  
Oil and natural gas revenue                 130,824     54,429      113,087 
Net income                                    7,538     14,823       20,920 
  Per share - basic                            0.07       0.14         0.19 
Adjusted Net income(2)                        7,490     22,955       11,654 
  Per share - basic                            0.07       0.06         0.11 
Funds flow from operations(3)                42,012     31,814       61,357 
  Per share - basic                            0.39       0.29         0.57 
Capital expenditure(4)                       50,902     54,485       92,514 
Total assets                                789,546    619,240      768,498 
Cash and cash equivalents                    26,542     90,273       50,529 
Working capital (deficit) surplus(5)         (9,014)    77,890         (555)
Convertible debentures(6)                   (65,251)   (57,226)     (61,940)
Long-term debt (7)                                -          -            - 
Outstanding shares (end of period) (000s)                                   
  Basic                                     108,422    108,215      108,422 
  Diluted(8)                                112,935    118,064      111,495 
(1)  The table above is unaudited and contains non-GAAP measures. See "Non- 
     GAAP Terms" for further discussion.                                    
(2)  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.                                                 
(3)  Reflects current tax provision of $19.3 million compared to $4.2       
     million in the previous quarter. The quarter over quarter change in    
     funds flow from current tax is approximately $0.14 per basic share.    
(4)  Excluding corporate acquisitions.                                      
(5)  On a fair market value basis the inventory on hand of 139,100 barrels  
     would have a value of approximately $15.3 million or a fair value      
     adjustment of approximately $5.6 million.                              
(6)  Face value of the convertible debenture is Cdn $85 million with a      
     conversion price of Cdn$10.15 per share.                               
(7)  Parex currently has a reserve based loan with a borrowing limit of $75 
     million that was undrawn at September 30, 2012.                        
(8)  Diluted shares include the effects of common shares, in-the-money stock
     options and potential shares issuable on conversion of in-the-money    
     convertible debentures outstanding as at the period-end. The September 
     28, 2012 closing stock price was $4.83 per share. Diluted shares       
     outstanding at September 30, 2012 per the MD&A of 126.6 million shares 
     include all potential dilution.



Operations Update

Parex provided a detailed operations update in its October 2, 2012 news release that incorporated exploration and production results to the end of the third quarter. Below is a summary of activities subsequent to the previous operations update. Note that production and test rates are stated in gross amounts.

Colombia Production

October 2012 production was approximately 12,400 bopd, a 14 percent increase over the third quarter of 2012 production of 10,874 bopd. Parex re-confirms its 2012 exit rate guidance of 13,000-14,000 bopd.

Block LLA-16 (operated 100 percent working interest)

After receiving the development license for the Kona field in June 2012, Parex is now able to drill additional infill wells and to re-complete existing wells and co-mingle different producing formations. In late August 2012 the Company re-completed Kona-10 by adding perforations in the lower Gacheta Formation, increasing Kona production to approximately 6,000 bopd. For the remainder of 2012, Parex expects to manage Kona field production in the 5,500-6,000 bopd range through additional optimization efforts.

Prior to year-end, Parex expects to drill Kona Sur exploration well. Kona Sur will evaluate the southern extension of the Kona field, which is outside the booked proved plus probable reserve area. Other exploration prospects on LLA-16 will be evaluated for drilling as part of the block's second exploration phase. Additional LLA-16 exploration prospects are expected to be drilled during 2013.

Los Ocarros Block (operated 50 percent working interest) (2)

Since April 2012, the Las Maracas field has been on producing light oil from the Mirador and Gacheta formations. The first production test for Las Maracas-5 was the Basal Gacheta Formation, a sand not present at Las Maracas-3 or Las Maracas-4. The Basal Gacheta zone was tested over a 20 hour period under natural flowing conditions at a maximum rate of 750 bopd at 0.4 percent water-cut. A total of 510 bbl of 32 degrees API oil was recovered during the test. Parex will be evaluating bottom-hole pressure data to fully evaluate the Basal Gacheta zone once the information has been recovered from the wellbore. The next zone to be completed in the well is the main Gacheta Sandstone which is the same producing formation as in Las Maracas-3 and Las Maracas-4.

The Company also plans to drill one to two additional appraisal wells prior to year-end to appraise both the Mirador and Gacheta formations, subject to partner and regulatory approvals.

El Eden Block (operated 60 percent working interest) (2)

The La Casona-1 exploration prospect was spud on September 4 2012, drilled to its target depth of 16,500 feet and rig released on October 29, 2012 after 55 days of drilling and was drilled on budget. The well encountered approximately 80 feet of potential net hydrocarbon pay while drilling through the Mirador and Une formations.

The Une reservoir was tested over a 32 hour period at a maximum rate of approximately 1,300 bopd and 4.0 MMCFD of natural gas at a flowing wellhead pressure of 3,000 psi under a 20/64 inch choke. Preliminary review of the bottom hole pressure data indicates a producing drawdown of approximately 4 percent at the end of the test. A total of 1,042 barrels of 36 degrees API oil was recovered during the test and the final water-cut measured at the end of the test was 0.5 percent. The well was production tested at restricted rates due to gas flaring limitations. Bottom-hole pressure recorders were installed and Parex will be evaluating the information to assess the unrestricted well capability.

Future testing of La Casona-1 well is expected to include the Mirador Formation which was not assessed in the preliminary test. Parex is also evaluating options for drilling an appraisal well and implementation of an early production program.

Cabrestero Block (Operated 50 percent Working Interest) (2)

The Akira-1 exploration prospect was drilled to approximately 10,000 feet and is currently testing the Guadalupe Formation. Parex expects to drill an appraisal well during 2013.

Block LLA-34 (non-operated 45 percent working interest)

Tua-1 began producing on October 2, 2012 at a rate of approximately 1,000 bopd. The appraisal well Tua-3 was spud on October 5, 2012 and is currently drilling. The operator expects to employ a service rig to test Tua-3 and subsequently to attempt to remediate the wellbore cement on Tua-2, which encountered prospective oil pay in the Mirador and Guadalupe formations.

Parex expects an additional appraisal well to be drilled on LLA-34 at either Max or Tua prior to year-end 2012.

(2) Parex operatorship and working interest are pending regulatory approval of the assignment pursuant to the farm-in agreement

Trinidad Update

The Company is testing the Firecrown 1 ST2 well. Following the acquisition of production and reservoir information, Snowcap 1 testing has been completed and Parex is evaluating drilling an appraisal well, Snowcap 2 in 2013.

To fulfill the Central Range Block ("CRB") work commitments, Parex and its partner are commencing a 340 kilometer 2D seismic acquisition and expect to spud the Deep CRB commitment well in mid-2013.

Risk Management

As part of its risk management program, Parex has entered into the following crude oil commodity price derivative contracts:

--  Fixed price swap: Brent ICE for 2,000 barrels per day at $111.70 per bbl
    for the period from September 1, 2012 to December 31, 2012. 
--  Costless Collar: Bought $100 per bbl put and sold $123 per bbl call for
    2,000 barrels per day of Brent ICE for the period from November 1, 2012
    to March 31, 2013.



Conference Call Information

Parex will host a conference call to discuss these results on Wednesday, November 14, 2012 at 9:30 am MST (11:30 am EST). Members of the news media, analysts and investors wishing to participate can access it by calling 1-866-696-5910, pass code: 1031465#.

The live audio will be carried at:

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 1,350,000 acre holdings in Colombia and its 219,000 acre holdings onshore Trinidad. Parex is headquartered in Calgary, Canada.

The following hyperlink can be used to access the Company's corporate presentation:

Non-GAAP Terms