Parallel Petroleum Announces Filing of a Universal Shelf Registration Statement

Business Wire, Oct 17, 2007

MIDLAND, Texas -- Parallel Petroleum Corporation (NASDAQ:PLLL) today announced the filing of a registration statement on Form S-3 with the Securities and Exchange Commission. The universal shelf registration statement, when effective, will allow Parallel to issue common stock, preferred stock, warrants, senior debt and subordinated debt up to an aggregate amount of $250 million.

The registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold, nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Upon effectiveness of the registration statement, Parallel may periodically offer one or more of these securities in amounts, prices and on terms to be announced when and if the securities are offered. At the time any of the securities covered by the registration statement are offered for sale, a prospectus supplement will be prepared and filed with the Securities and Exchange Commission containing specific information about the terms of any such offering. When available, such a written prospectus may be obtained by contacting the underwriters which will be named in any such prospectus supplement or by contacting Parallel Petroleum Corporation, 1004 N. Big Spring, Suite 400, Midland, Texas, 79701, Attn: Investor Relations.

Management Comments

Larry C. Oldham, Parallel's President and CEO, commented, "This registration statement, commonly known as a universal shelf registration statement, when declared effective by the SEC should increase Parallel's financial flexibility and allow us to act more quickly when potential acquisition or other business opportunities might require us to access capital."

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, North Texas Barnett Shale, Onshore Gulf Coast of South Texas, East Texas and Utah/Colorado. Additional information on Parallel Petroleum Corporation is available at http://www.plll.com.

Except for the historical information contained herein, this news release contains forward-looking statements and assumptions by Parallel that involve risks and uncertainties, including the anticipated effectiveness of the shelf registration statement or benefits to be obtained by Parallel from the use of such shelf registration. These forward-looking statements are based on current expectations and Parallel assumes no obligation to update this information. In addition, the events described in these forward-looking statements may not actually arise or may occur in a different manner than anticipated as a result of various factors, including market conditions, as well as other factors described from time to time in Parallel's filings with the SEC, including its annual report on Form 10-K for the year-end December 31, 2006.

This release also contains forward-looking statements 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 "initial daily test rates," "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 the results of exploratory drilling activity, the Company's growth strategy, changes in oil and natural gas prices, operating risks, availability of drilling equipment, outstanding indebtedness, 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, 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.