Letter from the President & CEO

Boasting a favorable investment environment, Colombia has proven to be a positive outcome operation for PAREX. Despite the economic and social challenges faced by the industry globally and locally, PAREX’ growth outlook in Colombia is positive, strengthening our commitment to expanding operations in locations where we can share our knowledge and expertise.

Our operational and financial results in 2016, publicly-reported periodically, were the result of clear goals, effective cost management, and wellplanned and responsible resource management. We exited 2016 with no bank debt and an undrawn credit facility of COP 533,921 million (USD $175 million).

The performance of PAREX’ share price since starting operations in Colombia speaks for itself: increasing from approximately CAD $4 to CAD $17 by the end of 2016. This significant growth is a sign of confidence for our investors, everyone at PAREX, and our stakeholders, who have the opportunity to grow along with PAREX.

The increase in the 2P Reserve Life Index from 8 to 10 years based on the annualized 2016 fourth quarter production, and an active 2016 drilling program of 17 gross wells (11.55 net) drilled with a success rate of 81%, attest to the favorable business outlook for PAREX’ strategic plan, and its medium-term and long-term goals.

Our success is possible due to the bonds of trust that we have been building with our investors, communities, employees, and authorities. Such bonds can only be achieved through transparent results,
operational excellence, and positive development in the areas where the Company operates.

The Company’s 2017 growth target entails the challenge of reaching an average daily oil production of approximately 35,000 barrels, continuing our drilling program in Llanos and Middle Magdalena, and
expanding our activities in Arauca. To achieve these goals, we rely on our greatest asset, our Colombian and Canadian human talent, who increasingly raise the standards on our path to higher growth.