Parex Resources announces approval of NCIB, Automatic Share Purchase Plan

Parex Resources announced that the Toronto Stock Exchange has approved the Company commencing a normal course issuer bid. Pursuant to the Bid, Parex will purchase for cancellation, from time to time, as it considers advisable, up to a maximum of 10,675,555 common shares of the Company. The Bid will commence on January 4, 2023 and will terminate on January 3, 2024 or such earlier time as the Bid is completed or terminated at the option of Parex. The maximum number of Common Shares to be purchased pursuant to the Bid represents 10% of the public float, as of December 22, 2022. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX and/or alternative trading systems. The number of Common Shares that can be purchased pursuant to the Bid is subject to a daily maximum of 141,763 Common Shares. The price that Parex will pay for any Common Shares under the Bid will be the prevailing market price on the TSX at the time of such purchase. Common Shares acquired under the Bid will be cancelled. RBC Dominion Securities Inc. has agreed to act on the Company’s behalf to make purchases of Common Shares pursuant to the Bid. Parex believes that the Common Shares have been trading in a price range which does not adequately reflect their value in relation to the Company’s current operations and its growth prospects, and that, at such times, the purchase of Common Shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. As of the close of business on December 22, 2022, the Company had 109,108,590 Common Shares issued and outstanding and a public float of 106,755,557 Common Shares. Under a previous notice of intention to conduct a normal course issuer bid, the Company sought and received approval of the TSX to purchase 11,820,533 Common Shares for the period from January 4, 2022 to January 3, 2023. From January 4, 2022 to September 30, 2022, the Company purchased 11,820,533 Common Shares on the open market at a weighted-average price of $20.58 per Common Share. Further, the Company has entered into an automatic share purchase plan with RBC Dominion Securities Inc. in order to facilitate repurchases of its Common Shares. Under the Company’s automatic share purchase plan, RBC Dominion Securities Inc. may repurchase Common Shares under the Bid during the Company’s self-imposed blackout periods. Purchases will be made by RBC Dominion Securities Inc. based upon the parameters prescribed by the TSX and applicable securities laws and the terms of the plan and the parties’ written agreement. The automatic share purchase plan has been approved by the Toronto Stock Exchange and will be implemented effective January 4, 2023.