Parex Resources Launches Normal Course Issuer Bid: A Strategic Move for Shareholder Value

Parex Resources Inc. (PXT) has received approval from the Toronto Stock Exchange (TSX) to commence a normal course issuer bid (NCIB) to purchase up to 8,621,348 common shares, representing approximately 10% of the public float as of January 10, 2025. The bid will commence on January 22, 2025, and will terminate on January 21, 2026, or such earlier time as the bid is completed or terminated at the option of Parex.

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. By purchasing and cancelling these shares, the company aims to increase the proportionate interest of, and be advantageous to, all remaining shareholders. This strategic move aligns with Parex's long-term investment strategy and commitment to creating value for shareholders.

The maximum number of Common Shares to be purchased pursuant to the Bid represents 10% of the public float as of January 10, 2025. Purchases pursuant to the Bid will be made on the open market through the facilities of the TSX and/or Canadian alternative trading systems. The number of Common Shares that can be purchased pursuant to the Bid is subject to a daily maximum of 221,960 Common Shares (which is equal to 25% of the average daily trading volume of 887,840 from July 1, 2024, to December 31, 2024). 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.

Peters and Co. has agreed to act on the Company's behalf to make purchases of Common Shares pursuant to the Bid. Parex has entered into an automatic share purchase plan with Peters and Co. in order to facilitate repurchases of its Common Shares. Peters and Co. may repurchase shares under the normal course issuer bid during the Company's self-imposed blackout periods. The automatic share purchase plan has been approved by the Toronto Stock Exchange and will be implemented effective January 22, 2025.

Parex Resources is a Calgary-based company that focuses on sustainable, profitable, conventional oil and gas production. The company's corporate headquarters are in Calgary, Canada, with an operating office in Bogotá, Colombia. Parex shares trade on the Toronto Stock Exchange under the symbol PXT.

In conclusion, Parex Resources' normal course issuer bid is a strategic move that aligns with the company's long-term investment strategy and commitment to creating value for shareholders. By repurchasing and cancelling shares, Parex aims to enhance shareholder value and take advantage of market conditions that do not reflect the company's true worth.