Parallel Petroleum Announces Second Quarter 2006 Financial Results.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 financial results for the second quarter ended June June: see month. 30, 2006, compared to the results for the same period in 2005. In a separate press release issued today, Parallel announced its operations update and second quarter 2006 production and 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. . Second Quarter Financial Results For the three months ended June 30, 2006, Parallel reported net income of $2.5 million, or $.07 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Included in net income was a $5.4 million pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta , non-cash loss related to the change in fair market value of derivative instruments Derivative instruments Contracts such as options and futures whose price is derived from the price of an underlying financial asset. and ineffective portion of hedges. For the three months ended June 30, 2005, Parallel recorded a net loss of $1.2 million, or a loss of $.04 per diluted share. Included in the net loss for the three months ended June 30, 2005 was a $6.2 million pre-tax, non-cash loss related to the change in fair market value of derivative instruments and ineffective portion of hedges. For the second quarter of 2006, Parallel's oil and natural gas sales were 298 MBbls of oil and 1,726 MMcf of natural gas, or 586 MBOE MBOE Thousands of Barrels of Oil Equivalent MBOE Milford Board of Education , a 75% increase when compared to the second quarter of 2005. During this period, the average prices the Company received for its oil and natural gas on an unhedged basis were $63.17 per barrel barrel: see English units of measurement. and $6.25 per Mcf, or $50.56 per BOE BOE Based on Experience BOE Board of Education BOE Boletín Oficial del Estado (Spanish) BOE Bank of England BOE Board of Equalization BOE Board of Elections BOE Barrel of Oil Equivalent BOE Bind on Equip ($45.01 per BOE, hedged hedge n. 1. A row of closely planted shrubs or low-growing trees forming a fence or boundary. 2. A line of people or objects forming a barrier: a hedge of spectators along the sidewalk. ). For the same period of 2005, oil sales were 218 MBbls at an average unhedged price of $46.97 per barrel and natural gas sales were 700 MMcf at an average unhedged price of $6.78 per Mcf, or 335 MBOE at an average unhedged price of $44.77 per BOE ($36.60 per BOE, hedged). Net cash provided by operating activities for the three-month period ended June 30, 2006, was $25.9 million, compared to $7.0 million for the three month period ended June 30, 2005. The 270% increase was primarily related to increased production volumes, increased oil prices, and an increase in vendor payables Payables Related: Accounts payable associated with the Company's increased drilling activities. Six Months Results For the six months ended June 30, 2006, Parallel reported net income of $4.1 million, or $.11 per diluted share. Included in net income was a $10.0 million pre-tax, non-cash loss related to the change in fair market value of derivative instruments and ineffective portion of hedges. For the six months ended June 30, 2005, Parallel recorded a net loss of $12.0 million, or a loss of $.40 per diluted share. Included in the net loss for the six months ended June 30, 2005 was a $24.6 million pre-tax, non-cash loss related to the change in fair market value of derivative instruments and ineffective portion of hedges. For the six months ended June 30, 2006, Parallel's sales were 566 MBbls of oil and 2,893 MMcf of natural gas, or 1,048 MBOE, a 63% increase when compared to the six months ended June 30, 2005. The average prices the Company received for its oil and natural gas on an unhedged basis were $60.56 per barrel and $6.42 per Mcf, or $50.43 per BOE ($44.72 per BOE, hedged). For the same period of 2005, oil sales were 425 MBbls at an average unhedged price of $46.15 per barrel and natural gas sales were 1,302 MMcf at an average price of $6.42 per Mcf, or 642 MBOE at $43.57 per BOE ($35.32 per BOE, hedged). Net cash provided by operating activities for the six-month period ended June 30, 2006, was $40.1 million, compared to $11.4 million for the same period of 2005. The 251% increase was primarily related to increased production volumes, increased oil prices, and an increase in vendor payables associated with the Company's increased drilling activities. Balance Sheet Review At June 30, 2006, current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. were $33.8 million, which included $6.3 million of cash. Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. were $48.0 million, including current derivative derivative: see calculus. derivative In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function. obligations of $21.3 million. Long-term liabilities Long-Term Liabilities Recorded on the balance sheet, a company's liabilities for leases, bond repayments and other items due in more than one year. Notes: A company's long-term liabilities are accounted for by its debt obligations to other parties which last longer than were $216.8 million, including $173.5 million of debt and $26.7 million of derivative obligations. The Company's revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility had a borrowing base of $140.0 million as of June 30, 2006, and its outstanding borrowings under the revolving credit facility as of that same date were $123.5 million. The Company's borrowing base is expected to be increased to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $156.0 million during the third quarter of 2006. In addition, the Company had $50.0 million outstanding under its second lien A Second lien financing is a form of financing secured on a second ranking basis by (more or less) the same security, which secures the first ranking financing. The first lien lenders and the second lien lenders agree that, in the event of a security enforcement or bankruptcy, the term loan facility. As of June 30, 2006, the Company's net capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. costs associated with its oil and gas properties and other equipment were $314.7 million. Its stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $97.0 million, which included $4.1 million of accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. other comprehensive loss that is related to the Company's hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. activities. Revised 2006 Capital Investment Budget Parallel's capital investments through June 30, 2006 were approximately $114.0 million, which includes $29.5 million of acquisitions made during the first quarter of 2006. Parallel has revised its 2006 capital investment budget to approximately $159.8 million, a 54% increase over its original 2006 budget of approximately $103.7 million. Excluding the $29.5 million of acquisitions, this is an increase of $26.6 million, or 26%, to $130.3 million budgeted for operations. Budgeted well operations have been increased 16% from 147 wells to 171 wells. Approximately $23.0 million, or 86%, of the $26.6 million increase is associated with increased activity on the Company's two resource gas projects, the 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 and the 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). Wolfcamp. Please refer to Tables 6 and 7 of the operations update press release dated August 9, 2006 for more information on the Company's revised 2006 capital expenditure budget. Management Comments Larry Lar´ry n. 1. Same as Lorry, or Lorrie. C. Oldham Oldham, city (1991 pop. 107,095) and metropolitan district, NW England, located in the Manchester metropolitan area. The city's industries include papermaking, tanning, food processing, and mail-order distribution. , Parallel's President, commented, "We are pleased with the Company's 75% increase in its average daily production volumes compared to the second quarter of 2005 and the 25% increase in its average daily production volumes over the first quarter of 2006. In addition, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased 138% to $12.4 million in the second quarter of 2006, compared to $5.2 million in the second quarter of 2005. Direct lifting costs per BOE decreased slightly to $6.38 in the second quarter of 2006, compared to $6.50 per BOE in the second quarter of 2005." In a final comment, Oldham stated, "For the six months ended June 30, 2006, we replaced approximately 548% of our production, and our proved reserve volumes increased approximately 19% over December December: see month. 31, 2005. Because of the Company's continued success, we have increased our 2006 capital investment budget 26% for a total of 171 well operations." Conference Call and Webcast Information The Company's management will host a conference call to discuss current operations, production, reserves and financial results for the second quarter ended June 30, 2006. In addition to this press release, please refer to the Company's operations update press release also dated August 9, 2006 and its Form 10-Q Form 10-Q See 10-Q. for the quarterly period ended June 30, 2006 that was filed with the Securities and Exchange Commission on August 9, 2006. The conference call will be held on Thursday Thursday: see week. , August 10, 2006, at 10:00 a.m. Eastern time (9:00 a.m. Central time). To participate in the call, dial 866-202-3109 or 617-213-8844, Participant Participant A party of a funding. It usually refers to the lowest rank or smallest level of funding. Passcode 75055721, at least five minutes before the scheduled start time. The conference call will also be webcast with slides, and can be accessed live at Parallel's web site, http://www.plll.com. A replay of the conference call will be available at the Company's web site or by calling 888-286-8010 or 617-801-6888, Passcode 39330854.
FINANCIAL STATEMENTS AND SCHEDULES FOLLOW
PARALLEL PETROLEUM CORPORATION
Consolidated Balance Sheets
(dollars in thousands, except per share amounts)
June 30, December 31,
Assets 2006 2005
------------- -------------
(unaudited)
Current assets:
Cash and cash equivalents $6,333 $6,418
Accounts receivable:
Oil and natural gas 13,048 13,183
Other, net of allowance for doubtful
account of $9 3,684 877
Affiliates 36 12
------------- -------------
16,768 14,072
Other current assets 4,278 2,364
Deferred tax asset 6,393 5,241
------------- -------------
Total current assets 33,772 28,095
------------- -------------
Property and equipment, at cost:
Oil and natural gas properties, full
cost method (including $36,273 and
$19,869 not subject to depletion) 412,762 303,819
Other 3,188 2,404
------------- -------------
415,950 306,223
Less accumulated depreciation,
depletion and amortization (101,254) (90,826)
------------- -------------
Net property and equipment 314,696 215,397
Restricted cash 274 2,640
Investment in pipelines and gathering
system ventures 9,506 3,326
Other assets, net of accumulated
amortization of $1,107 and $901 3,482 3,550
------------- -------------
$361,730 $253,008
============= =============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued
liabilities $26,349 $10,841
Asset retirement obligations 355 214
Derivative obligations 21,258 16,607
------------- -------------
Total current liabilities 47,962 27,662
------------- -------------
Revolving credit facility 123,500 50,000
Term Loan 50,000 50,000
Asset retirement obligations 4,065 2,281
Derivative obligations 26,721 25,527
Deferred tax liability 12,491 8,036
------------- -------------
Total long-term liabilities 216,777 135,844
------------- -------------
Commitments and contingencies
Stockholders' equity:
Series A preferred stock -- par value
$0.10 per share, authorized 50,000
shares - -
Preferred stock -- 6% convertible
preferred stock -- par value of $0.10
per share (liquidation preference of
$10 per share), authorized 10,000,000
shares, - -
Common stock -- par value $0.01 per
share, authorized 60,000,000 shares,
issued and outstanding 34,960,295 and
34,748,916 350 347
Additional paid-in capital 79,755 78,699
Retained earnings 20,974 16,899
Accumulated other comprehensive loss (4,088) (6,443)
------------- -------------
Total stockholders' equity 96,991 89,502
------------- -------------
$361,730 $253,008
============= =============
PARALLEL PETROLEUM CORPORATION
Consolidated Statements of Operations
(unaudited)
(in thousands, except per share data)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ------------------
2006 2005 2006 2005
--------- -------- -------- ---------
Oil and natural gas revenues:
Oil and natural gas sales $29,594 $15,004 $52,870 $27,973
Loss on hedging (3,252) (2,741) (5,985) (5,296)
--------- -------- -------- ---------
Total revenues 26,342 12,263 46,885 22,677
Cost and expenses:
Lease operating expense 3,741 2,178 7,316 4,736
Production taxes 1,468 701 2,578 1,281
General and administrative 2,613 1,408 4,742 3,036
Depreciation, depletion and
amortization 6,140 2,773 10,428 5,055
--------- -------- -------- ---------
Total costs and expenses 13,962 7,060 25,064 14,108
--------- -------- -------- ---------
Operating income 12,380 5,203 21,821 8,569
--------- -------- -------- ---------
Other income (expense), net:
Change in fair market value
of derivative instruments (5,493) (6,065) (10,207) (23,698)
Gain (loss) on ineffective
portion of hedges 52 (150) 195 (860)
Interest and other income 25 22 93 41
Interest expense (3,158) (868) (5,599) (2,041)
Other expense (39) (1) (68) (2)
Equity in loss of pipelines
and gathering system
ventures (10) (15) (29) (94)
--------- -------- -------- ---------
Total other income
(expense), net (8,623) (7,077) (15,615) (26,654)
--------- -------- -------- ---------
Income (loss) before income
taxes 3,757 (1,874) 6,206 (18,085)
Income tax benefit (expense),
deferred (1,293) 628 (2,131) 6,135
--------- -------- -------- ---------
Net income (loss) 2,464 (1,246) 4,075 (11,950)
Cumulative preferred stock
dividend - (128) - (271)
--------- -------- -------- ---------
Net income (loss) available
to common stockholders $2,464 $(1,374) $4,075 $(12,221)
========= ======== ======== =========
Net income (loss) per common
share:
Basic $0.07 $(0.04) $0.12 $(0.40)
========= ======== ======== =========
Diluted $0.07 $(0.04) $0.11 $(0.40)
========= ======== ======== =========
Weighted average common share
outstanding:
Basic 34,940 31,967 34,896 30,341
========= ======== ======== =========
Diluted 35,638 31,967 35,572 30,341
========= ======== ======== =========
PARALLEL PETROLEUM CORPORATION
Consolidated Statements of Cash Flows
Six Months Ended June 30, 2006 and 2005
(unaudited)
(dollars in thousands)
2006 2005
---------- ----------
Cash flows from operating activities:
Net income (loss) $4,075 $(11,950)
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation, depletion and amortization 10,428 5,055
Accretion of asset retirement obligation 101 54
Deferred income tax 2,131 (6,135)
Change in fair value of derivatives
instruments 10,207 23,696
(Gain) loss on ineffective portion of
hedges (195) 860
Stock option expense 292 70
Equity in loss of pipelines and gathering
system ventures 29 94
Changes in assets and liabilities:
Other assets, net 718 123
Restricted cash - (149)
Increase in accounts receivable (2,696) (2,091)
Increase in other current assets (457) (11)
Increase in accounts payable and accrued
liabilities 15,508 1,800
Federal tax deposit (40) -
---------- ----------
Net cash provided by operating activities 40,101 11,416
---------- ----------
Cash flows from investing activities:
Additions to oil and natural gas properties (107,159) (25,431)
Use of restricted cash for acquisition of oil
and natural gas properties 2,366 2,287
Proceeds from disposition of oil and natural
gas properties 41 2,828
Additions to other property and equipment (784) (299)
Settlements on derivative instruments (2,651) (1,570)
Purchase of derivative instruments - (35)
Investment in pipelines and gathering system
ventures (6,209) (1,071)
---------- ----------
Net cash used in investing activities (114,396) (23,291)
---------- ----------
Cash flows from financing activities:
Net borrowings (payments) on revolving line
of credit 73,500 (17,000)
Deferred financing cost (56)
Proceeds (net) from common stock issued - 27,743
Proceeds from exercise of stock options 766 378
Payment of preferred stock dividend - (271)
---------- ----------
Net cash provided by financing activities 74,210 10,850
---------- ----------
Net decrease in cash and cash equivalents (85) (1,025)
Cash and cash equivalents at beginning of
period 6,418 4,781
---------- ----------
Cash and cash equivalents at end of period $6,333 $3,756
========== ==========
Non-cash financing and investing activities:
Oil and natural gas properties asset
retirement obligations $1,825 $65
Conversion of preferred stock $- $95
Other transactions:
Interest paid $5,026 $2,290
PARALLEL PETROLEUM CORPORATION
SELECTED OPERATING AND FINANCIAL DATA
Three Months Ended Six Months Ended
--------------------- ---------------------
6/30/2006 6/30/2005 6/30/2006 6/30/2005
---------- ---------- ---------- ----------
(in thousands, except per unit data)
Production Volumes:
-------------------
Oil (Bbls) 298 218 566 425
Natural gas (Mcf) 1,726 700 2,893 1,302
BOE (1) 586 335 1,048 642
BOE per day 6.4 3.7 5.8 3.5
Sales Prices:
-------------
Oil (per Bbl) (2) $63.17 $46.97 $60.56 $46.15
Natural gas (per Mcf) (2) $6.25 $6.78 $6.42 $6.42
BOE price (2) $50.56 $44.77 $50.43 $43.57
BOE price (3) $45.01 $36.60 $44.72 $35.32
Operating Revenues:
-------------------
Oil $18,802 $10,259 $34,284 $19,618
Oil hedge (3,252) (2,741) (5,985) (5,095)
Natural gas 10,792 4,745 18,586 8,355
Natural gas hedge - - - (201)
---------- ---------- ---------- ----------
$26,342 $12,263 $46,885 $22,677
---------- ---------- ---------- ----------
Operating Expenses and
Income:
-----------------------
Lease operating expense $3,741 $2,178 $7,316 $4,736
Production taxes 1,468 701 2,578 1,281
General and
administrative:
General and
administrative 1,523 859 2,657 1,828
Public reporting 1,090 549 2,085 1,208
Depreciation, depletion
and amortization 6,140 2,773 10,428 5,055
---------- ---------- ---------- ----------
$13,962 $7,060 $25,064 $14,108
---------- ---------- ---------- ----------
Operating income $12,380 $5,203 $21,821 $8,569
---------- ---------- ---------- ----------
Total other income
(expense), net (8,623) (7,077) (15,615) (26,654)
---------- ---------- ---------- ----------
Income (loss) before
income taxes 3,757 (1,874) 6,206 (18,085)
Income tax benefit
(expense), deferred (1,293) 628 (2,131) 6,135
---------- ---------- ---------- ----------
Net income (loss) 2,464 (1,246) 4,075 (11,950)
Cumulative preferred
stock dividend - (128) - (271)
---------- ---------- ---------- ----------
Net income (loss)
available to common
stockholders $2,464 $(1,374) $4,075 $(12,221)
========== ========== ========== ==========
Net income (loss) per
common share:
Basic $0.07 $(0.04) $0.12 $(0.40)
Diluted $0.07 $(0.04) $0.11 $(0.40)
Weighted average common
shares outstanding:
Basic 34,940 31,967 34,896 30,341
Diluted 35,638 31,967 35,572 30,341
(1) A BOE means one barrel of oil equivalent using the ratio of six
Mcf of gas to one barrel of oil.
(2) Excludes hedge transactions.
(3) Includes hedge transactions.
PARALLEL PETROLEUM CORPORATION
DERIVATIVES INFORMATION AS OF JUNE 30, 2006 (1)
PUTS: Houston
----- Ship
Channel
Gas Price
-----------
Period of Time MMBTU of Fair Market
Natural Gas Floor Value
----------------------------- ----------- ----------- ----------------
($ in thousands)
Jul 1, 2006 thru Oct 31, 2006 369,000 $7.17 $596
COSTLESS COLLARS:
----------------- NYMEX
Oil Prices
----------------- MMBTU of
Period of Time Barrels of Floor Cap Natural
Oil Gas
------------------------------ ---------- --------- ------- ----------
Jul 1, 2006 thru Dec 31, 2006 145,000 $48.32 $76.07 -
Jul 1, 2006 thru Oct 31, 2006 - $- $- 246,000
Jul 1, 2006 thru Oct 31, 2006 - $- $- 123,000
Jan 1, 2007 thru Dec 31, 2007 219,000 $52.50 $83.00 -
Apr 1, 2007 thru Oct 31, 2007 - $- $- 214,000
Jan 1, 2008 thru Dec 31, 2008 109,800 $55.00 $76.50 -
Jan 1, 2009 thru Dec 31, 2009 91,250 $55.00 $73.00 -
Jan 1, 2010 thru Dec 31, 2010 76,000 $55.00 $71.00 -
Total Fair Market Value
COSTLESS COLLARS: Houston
----------------- Ship Channel WAHA
Gas Prices Gas Prices
-------------- -------------- Fair Market
Period of Time Floor Cap Floor Cap Value
---------------------------- ------ ------- ------ ------- -----------
($ in
thousands)
Jul 1, 2006 thru Dec 31,
2006 $- $- $- $- $(1,186)
Jul 1, 2006 thru Oct 31,
2006 $7.50 $13.90 $- $- 464
Jul 1, 2006 thru Oct 31,
2006 $- $- $9.00 $14.55 425
Jan 1, 2007 thru Dec 31,
2007 $- $- $- $- (785)
Apr 1, 2007 thru Oct 31,
2007 $6.00 $11.05 $- $- (48)
Jan 1, 2008 thru Dec 31,
2008 $- $- $- $- (510)
Jan 1, 2009 thru Dec 31,
2009 $- $- $- $- (436)
Jan 1, 2010 thru Dec 31,
2010 $- $- $- $- (338)
-----------
Total Fair Market Value $(2,414)
===========
SWAPS:
------
Volume NYMEX
Hedged Oil Fair Market
Period of Time Bbl Oil Swap Price Value
---------------------------------- --------- ---------- -------------
($ in
thousands)
Jul 1, 2006 thru Dec 20, 2006 (2) 129,750 $23.04 $(6,694)
Jul 1, 2006 thru Dec 31, 2006 92,000 $36.35 (3,544)
Jan 1, 2007 thru Dec 31, 2007 474,500 $34.36 (18,620)
Jan 1, 2008 thru Dec 31, 2008 439,200 $33.37 (15,829)
-------------
Total Fair Market Value $(44,687)
=============
INTEREST RATE SWAPS:
--------------------
Fixed
Period of Time Notional Interest Fair Market
Amount Rates Value
------------------------------ ---------- --------- -----------------
($ in ($ in thousands)
millions)
Jul 1, 2006 thru Dec 31, 2006
(2) $10 4.05% $70
Jul 1, 2006 thru Dec 31, 2006 $90 4.41% 486
Jan 1, 2007 thru Dec 31, 2007 $100 4.62% 850
Jan 1, 2008 thru Dec 30, 2008 $100 4.86% 572
Jan 1, 2009 thru Dec 31, 2009 $50 5.06% 195
Jan 1, 2010 thru Oct 31, 2010 $50 5.15% 141
-----------------
Total Fair Market Value $2,314
=================
(1) BNP Paribas and Citibank, NA are the counterparties in Parallel's
derivative instruments.
(2) Designated as cash flow hedge.
ADDITIONAL DERIVATIVES INFORMATION
SUBSEQUENT TO JUNE 30, 2006 (1) (2)
COSTLESS COLLARS:
-----------------
Barrels of WTI Oil Prices
-------------------
Period of Time Oil Floor Cap
----------------------------- ------------ ---------- --------
Oct 1, 2006 thru Dec 31, 2006 27,600 $65.00 $92.00
Jan 1, 2007 thru Dec 31, 2007 73,000 $65.00 $90.50
Jan 1, 2008 thru Dec 31, 2008 128,100 $65.00 $85.00
Jan 1, 2009 thru Dec 31, 2009 529,250 $65.00 $81.45
Jan 1, 2010 thru Oct 31, 2010 410,400 $65.00 $79.60
------------
Total barrels of oil 1,168,350
============
(1) These costless collars were entered into subsequent to the second
quarter ended June 30, 2006. For more information, please refer to
the Company's press release dated July 12, 2006.
(2) BNP Paribas and Citibank, NA are the counterparties in Parallel's
derivative instruments.
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 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. of West Texas and New Mexico, North Texas Barnett Shale, Onshore on·shore adj. 1. Moving or directed toward the shore: an onshore wind. 2. Located on the shore: an onshore beacon; an onshore patrol. adv. 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. terminology The terminology used in the computer and telecommunications field adds tremendous confusion not only for the lay person, but for the technicians themselves. What many do not realize is that terms are made up by anybody and everybody in a nonchalant, casual manner without any regard or 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 INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. , weaknesses in the Company's internal controls, the inherent variability in early production tests, changes in interest rates, dependence on weather conditions, seasonality, expansion and other activities of competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , 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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