Parex Resources Inc. (TSX: PXT) announced it has agreed to issue $500 million in senior unsecured notes due 2031 through a private placement offering. The notes were priced at par with an 8.50% annual interest rate and mature on May 11, 2031.

The offering is expected to close on May 11, 2026, subject to customary closing conditions. Net proceeds will be deposited into an escrow account pending satisfaction of certain conditions, including completion of the previously announced acquisition of Frontera Energy Corporation's exploration and production assets in Colombia.

Upon release from escrow, Parex intends to use the net proceeds to fund the cash portion of the Frontera transaction consideration and pay related fees and expenses. Any remaining proceeds will be used for general corporate purposes. The Frontera transaction is expected to close in the second quarter of 2026.

The notes are being offered through a syndicate of initial purchasers with Deutsche Bank Securities, Itaú BBA, Santander and Scotiabank as Global Coordinators and Joint Bookrunners. BMO Capital Markets serves as Passive Bookrunner, while BBVA and Bladex act as Co-Managers.

The notes will be issued under Rule 144A exemption from Securities Act registration requirements and to non-U.S. persons under Regulation S. The securities have not been registered under the Securities Act or qualified for public distribution under Canadian securities laws.

Parex Resources is an independent oil and gas company focused on conventional production in Colombia, with headquarters in Calgary and operations in Bogotá.