Parallel ups stake in Diamond M project

Texas-based oil and natural-gas producer, Parallel Petroleum Corporation, has purchased the interests owned by Southwestern Energy for $35.5 million in Parallel’s operated Diamond M properties in Scurry County, Texas, exercising its preferential right from a previous agreement. The deal became effective on 1 May, 2008.

The purchase of additional stakes may increase Parallel’s current daily production of around 298 net barrels of oil equivalent, and proved reserves of about 3.5 million.

The company arranged the funds for this deal by borrowings from its revolving credit facility.

The acquired interests consist of two components, including an 89% working interest in the Base production and reserves and a 22.3% working interest in the production and reserves above the Base.