Parallel Petroleum Corporation (PLLL)

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NEWS Parallel Petroleum Announces Additional Oil Hedges

Parallel Petroleum Corporation (NASDAQ:PLLL) today announced that on June 11, 2009, it hedged 621,500 barrels of oil for the calendar years 2011 and 2012. Citibank, N.A. is the counterparty for these derivatives, which are West Texas Intermediate (WTI) costless collars with $70.00 floors and caps ranging from $94.25 to $101.50, as shown in the table below.



Barrels of WTI Oil Prices
Period of Time Oil Floor Cap
Jan 1, 2011 thru Dec 31, 2011 255,500 $ 70.00 $ 94.25
Jan 1, 2012 thru Dec 31, 2012 366,000 $ 70.00 $ 101.50
Total barrels of oil 621,500

Management Comments

Larry C. Oldham, Parallel’s President, commented, “These additional hedges bring our total oil hedges to 1,100 barrels of oil per day for 2011 and 1,000 barrels of oil per day for 2012. Our average daily oil production for the first quarter ended March 31, 2009, was approximately 2,807 barrels of oil per day, which was primarily produced from our long-life Permian Basin oil properties.”

The Company

Parallel Petroleum is an independent energy company headquartered in Midland, Texas, engaged in the exploitation, development, acquisition and production of oil and gas using 3-D seismic technology and advanced drilling, completion and recovery techniques. Parallel’s primary areas of operation are the Permian Basin of West Texas and New Mexico, North Texas Barnett Shale, Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel is available via the internet at www.plll.com.
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