Parallel Petroleum Corporation is an energy company that lists on NASDAQ as part of the Independent Oil and Gas industry. Founded in 1979, the company acquires, explores for, develops, and produces oil and gas using advanced drilling, completion and recovery techniques and 3-D seismic technology. Their corporate headquarters are in Midland, Texas.
Their focus is the acquisition and enhancement of producing oil and gas assets. While they will continue to drill lower-risk exploratory oil and gas prospects associated with 3-D seismic technology, this will be to a lesser extent than in the past. Parallel Petroleum operates mainly in the Permian Basin of West Texas and New Mexico, in the North Texas Barnett Shale, in the onshore area of the Gulf Coast of South Texas, in East Texas, and in Utah and Colorado. As of December 31, 2007, they had total proved reserves of approximately 28.4 million barrels of oil, and approximately 57.2 billion cubic feet of natural gas
The company’s Permian Basin projects consist of their December 2002, $46 million Fullerton acquisition of long-life, shallow oil properties. It also includes three unrelated acquisitions of Permian Basin properties the company made since September 2004, for an investment of approximately $34.5 million. The company acquired their New Mexico gas project in 2003. They acquired their Barnett Shale project near Fort Worth in April of 2003.
Parallel Petroleum Corporation’s mission is to acquire producing properties and focus on projects that have economic impact. They are concentrating on exploitation and enhancement activities along with exploration. The company wants to further their operations by diversifying development and exploratory efforts inside and outside current areas of operation. They seek to develop established geologic trends where they can use the engineering, operations, financial and technical expertise of their whole team.
On June 26, 2008, they announced the purchase of Southwestern Energy Company’s interests in Parallel’s operated Diamond M properties in Scurry County, Texas. These additional interests acquired represent current daily production of approximately 298 net barrels of oil equivalent (BOE), and proved reserves of approximately 3.5 million BOE. Of this, 46 percent is proved developed producing (PDP) reserves. The acquired interests consist of an 89-percent working interest in the Base production and reserves, and a 22.3 percent working interest in the production and reserves above the Base. The Base production and reserves means future production and reserves defined by an established base-production decline curve.
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