Parallel announces increased production

Parallel Petroleum Corporation announces its first quarter 2008 average net daily production, work-in-progress, and field operations update.

The Company’s net daily production for the first quarter ended March 31, 2008 averaged 7,592 equivalent barrels of oil per day (BOEPD), an increase of 13% when compared to an average of 6,707 BOEPD during the fourth quarter ended December 31, 2007.

During the first quarter 2008, production from the Company’s Barnett Shale gas project increased 50%, from 1,678 to 2,520 BOEPD, due to the completion of new wells and increased take-away capacity related to pipeline expansion and additional compression. Production from the New Mexico Wolfcamp gas project increased 16%, from 1,551 to 1,795 BOEPD, during the first quarter 2008 due to better, and more consistent, well results and timing of completions.

The first quarter 2008 increases were partially offset by a 3% decrease in the Company’s long-life Permian Basin oil projects, from 2,995 to 2,897 BOEPD, due to development timing and normal decline on base production, and a 21% decrease in its South Texas short-life gas properties from 483 to 380 BOEPD due to normal decline.

Source : www.plll.com