Parallel Petroleum Announces 52% Increase in Proved Reserves.MIDLAND, Texas Midland is the county seat of Midland CountyGR6 located on the Southern Plains of the western area of the U.S. State of Texas. As of the 2006 U.S. Census estimate, the city had a total population of 102,073. -- Parallel Petroleum Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :PLLL) today announced its proved reserves proved reserves The quantity of minerals expected to be recoverable under current economic and operating conditions. The amount of proved reserves is important in valuing the stock of a company with significant holdings in natural resources. as of December 31, 2006. Proved Reserves as of December 31, 2006 As estimated by its independent engineers, Parallel's proved reserves as of December 31, 2006 increased approximately 52% to 38.5 million equivalent barrels of oil (MMBOE MMBOE Million Barrels of Oil Equivalent (energy and petroleum industry) ), as compared to 25.4 MMBOE as of December 31, 2005. Of the 13.1 MMBOE net increase, approximately 5.8 MMBOE were associated with the Company's two emerging resource gas projects and approximately 7.9 MMBOE were associated with its Permian Basin The Permian Basin is a sedimentary basin largely contained in the western part of the U.S. state of Texas. It reaches from just south of Lubbock, Texas, to just south of Midland & Odessa, extending westward into the southeastern part of the adjacent state of New Mexico. long-life oil projects, offset by a decrease of approximately 0.6 MMBOE associated with its gas projects located onshore the gulf coast of south Texas. The 2006 year-end proved reserves were 48% proved developed producing, 3% proved developed non-producing, and 49% proved undeveloped. The 2006 year-end proved reserves by volume were 75% oil and 25% natural gas. Please refer to Table 1 below for information pertaining per·tain intr.v. per·tained, per·tain·ing, per·tains 1. To have reference; relate: evidence that pertains to the accident. 2. to total proved reserves by category. The Company's Permian Basin long-life oil projects represented approximately 87% of its proved reserves value, and its two emerging resource gas projects represented approximately 9% of the value. The NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). price per barrel of oil increased slightly from $61.04 to $61.06, and the NYMEX price per Mcf of natural gas decreased 42% from $9.43 to $5.47, when comparing December 31, 2005 to December 31, 2006. Please refer to Table 2 below for detail of proved reserves by area/property as of December 31, 2006. Management Comments Larry C. Oldham, Parallel's President, commented, "We are extremely pleased to have increased our proved reserves volumes by 52% during 2006. This was accomplished by the diligent efforts of the entire Parallel team. Because of our extensive acreage positions and inventory of drillable locations associated with our two emerging resource gas projects and our five low-risk development oil projects, we are in an excellent position to continue to build significant value for our shareholders. We look forward to continued growth in 2007." Proved Reserves as of December 31, 2005 and December 31, 2006 The following Table 1 represents Parallel's total proved reserves by category and the Standardized Measure of Discounted Future Net Cash Flows as of December 31, 2005, and December 31, 2006. [TABLE OMITTED] Proved Reserves by Area/Property as of December 31, 2006 The following Table 2 represents Parallel's proved reserves, on a property basis, and the estimated Standardized Measure of Discounted Future Net Cash Flows as of December 31, 2006. [TABLE OMITTED] The Company Parallel Petroleum is an independent energy company headquartered in Midland, Texas, engaged in the acquisition, exploration, development 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 New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , North Texas Barnett Shale The Barnett Shale is a geological formation of economic significance. It consists of sedimentary rocks of Mississippian age in the U.S. State of Texas. The formation is estimated to stretch from the city of Dallas to west of the city of Fort Worth and south, covering 5,000 square , Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel Petroleum Corporation is available at http://www.plll.com. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. subject to various risks and uncertainties that could cause the Company's future plans, objectives and performance to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "plan," "subject to," "anticipate," "estimate," "continue," "present value," "future," "reserves," "appears," "prospective," or other variations thereof or comparable terminology. Factors that could cause or contribute to such differences could include, but are not limited to, those relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the results of exploratory drilling activity, the Company's growth strategy, changes in oil and natural gas prices, operating risks Operating risk The inherent or fundamental risk of a firm, without regard to financial risk. The risk that is created by operating leverage. Also called business risk. , availability of drilling equipment, outstanding indebtedness, weaknesses in our internal controls, the inherent variability in early production tests, changes in interest rates, dependence on weather conditions, seasonality, expansion and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, and the general condition of the economy and its effect on the securities market. While we believe our forward-looking statements are based upon reasonable assumptions, these are factors that are difficult to predict and that are influenced by economic and other conditions beyond our control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the Company with the Securities and Exchange Commission. |
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