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News Release August 4 , 2021 Parex Announces Q2 2021 Results : Generates Significant Free Cash Flow and Implements Quarterly Dividend Calgary , Canada Parex Resources Inc. ( " Parex " or the " Company " ) ( TSX : PXT ) , a company headquartered in Calgary , Alberta that focuses on sustainable , conventional oil and gas production , is pleased to announce its unaudited financial and operating results for the three months ended June 30 , 2021 ( " Second Quarter " or " Q2 " ) . All amounts herein are in United States Dollars ( " USD " ) unless otherwise stated . 2021 Second Quarter Highlights . • • • • • • Quarterly average production was 43,900 barrels of oil equivalent per day ( " boe / d " ) ( consisting of 5,881 barrels per day ( " bbls / d " ) of light crude oil and medium crude oil , 36,308 bbls / d of heavy crude oil and 10,266 thousand cubic feet per day ( " mcf / d " ) of conventional natural gas ) , an increase of approximately 18 % on a per basic share basis over the previous period ended June 30 , 2020 . Parex ' oil production in Q2 was temporarily restricted due to transportation blockades across Colombia that restricted movement of crude oil , and supplies to drilling and completion activities . Current production is approximately 48,000 boe / d ( consisting of approximately 6,240 bbls / d of light crude oil and medium crude oil , 39,840 bbls / d of heavy crude oil and 11,520 mcf / d of conventional natural gas ) . Recognized net income of $ 91.7 million ( $ 0.72 ( or CAD $ 0.88 ) ( ¹ ) per share basic ) compared to net income of $ 47.5 million ( $ 0.37 ( or CAD $ 0.47 ) ( ¹ ) per share basic ) in the previous quarter ended March 31 , 2021 and net income of $ 19.3 million ( $ 0.14 ( or CAD $ 0.19 ) ( ¹ ) per share basic ) in Q2 2020 ; Generated an operating netback ( 3 ) of $ 41.29 per barrel of oil equivalent ( " boe " ) and funds flow provided by operations ( " FFO " ) ( 3 ) per boe of $ 32.02 from an average Brent price of $ 69.08 per barrel ( " bbl " ) ; FFO of $ 131.6 million ( $ 1.03 ( or CAD $ 1.27 ) ( ¹ ) per share basic ) as compared to $ 38.8 million ( $ 0.28 ( or CAD $ 0.39 ) ( 1 ) per share basic ) for Q2 2020. FFO increased in the current quarter due to higher global oil prices ; Capital expenditures were $ 44.8 million in the period resulting in free funds flow ( 3 ) for the three months ended June 30 , 2021 of $ 86.8 million ; Utilized a portion of free funds flow to purchase 4,212,315 of the Company's common shares for a total cost of $ 75.9 million ( average price of CAD $ 21.67 / share ) pursuant to the Company's normal course issuer bid program ( " NCIB " ) ; Reduced basic outstanding shares as a result of the active NCIB from 155.6 million shares as at June 30 , 2018 to 124.9 million shares at June 30 , 2021 or a decrease of approximately 20 % ; Working capital was $ 352.2 million at June 30 , 2021 compared to $ 341.7 million at March 31 , 2021 and $ 339.3 million at June 30 , 2020. The working capital in addition to an undrawn syndicated bank credit facility of $ 200.0 million results in immediate liquidity of $ 552.2 million ; and PAREX RESOURCES INC .