Parallel Energy Trust Announces Record Production in the Second Quarter and
Provides an Operations Update
CALGARY, ALBERTA -- (Marketwired) -- 07/02/13 -- Parallel Energy
Trust (TSX:PLT.UN) ("Parallel" or the "Trust") today provided a
production update and reported the results of its 2013 drilling
program to date.
Based on field data, Parallel's average daily production rate for the
second quarter of 2013 is expected to be approximately 7,400 boe/day,
which represents record quarterly production for the Trust.
Production in the second quarter has been positively impacted by
favourable drilling results in the Carson area and the previously
announced closing of the Cargray acquisition.
Parallel drilled, completed and tied-in a total of five wells in the
Carson area in the second quarter of 2013. The average 30 day initial
production rate for the five wells drilled in the second quarter was
70 boe/day, which was 130% higher than the Trust's expected rate of
30 boe/day. In total, the Trust has completed 11 wells in the Carson
area in the first half of 2013 with an average 30 day initial
production rate for all 11 wells drilled in 2013 of 40 boe/day. This
results in capital efficiencies of approximately $16,000 per flowing
boe/day, on par with the Trust's expectations.
As a result of the strategic acquisition of the Cargray operating
area, which closed on May 8, 2013, Parallel has suspended its
drilling program for the second half of 2013. The acquisition, which
cost approximately US$6.5 million, added approximately 200 boe/day of
liquids-rich natural gas production. Parallel incurred the full cost
of the acquisition in the second quarter of 2013 which has resulted
in a temporary increase to the Trust's bank debt. The bank debt is
estimated to be US$161.5 million at the end of the second quarter,
which is expected to be reduced over the remainder of 2013 as there
are minimal capital expenditures planned for the second half of the
year. Parallel looks forward to recommencing its drilling program in
2014, with an inventory of more than 150 drilling locations.
"We are very pleased with the results of our 2013 drilling program
and our improved production levels in the second quarter of 2013,"
said Rick Alexander, President and CEO of Parallel. "As a result of
the many initiatives undertaken over the past number of months, the
commitment of our operations and business development staff, and the
performance of our asset base in a wide range of operating
conditions, we are continuing to demonstrate the sustainability of
our business model."
ABOUT PARALLEL ENERGY TRUST
Parallel's objectives are to create stable, consistent returns for
investors through the acquisition and development of conventional oil
and natural gas reserves and production with unexploited low risk
potential in certain regions of the United States, and to pay out a
portion of available cash to holders of trust units on a monthly
basis. The trust units of Parallel are listed on the Toronto Stock
Exchange ("TSX") under the symbol "PLT.UN" and the debentures are
listed on the TSX under the symbol "PLT.DB".
Parallel is a "mutual fund trust" under the Income Tax Act (Canada)
(the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in
the Tax Act), provided that the Trust complies at all times with its
investment restriction which precludes the Trust from holding any
"non-portfolio property" (as defined in the Tax Act). Further
information relating to Parallel is set out in Parallel's annual
information form dated March 25, 2013, which may be obtained on the
SEDAR website at www.sedar.com under Parallel's profile.
This news release contains forward-looking information that involves
substantial known and unknown risks and uncertainties, most of which
are beyond the control of Parallel, including, without limitation,
those listed under "Risk Factors" in Parallel's annual information
form dated March 25, 2013 (collectively, "forward-looking
information"). Forward-looking information in this news release
includes, but is not limited to, Parallel's objectives and status as
a mutual fund trust and not a SIFT trust and Parallel's expectations
and estimates regarding current and future production rates and
drilling results. Parallel cautions investors in Parallel's
securities about important factors that could cause Parallel's actual
results to differ materially from those projected in any
forward-looking statements included in this news release. Any
statements that express, or involve discussions as to, expectations,
beliefs, plans, objectives, assumptions or future events or
performance are not historical facts and may be forward-looking and
may involve estimates, assumptions and uncertainties which could
cause actual results or outcomes to differ materially from those
expressed in such forward-looking statements. No assurance can be
given that the expectations set out in Parallel's final prospectus or
herein will prove to be correct and accordingly, prospective
investors should not place undue reliance on these forward-looking
statements. These statements speak only as of the date of this press
release and Parallel does not assume any obligation to update or
revise them to reflect new events or circumstances.
In this news release, Parallel and its subsidiaries are referred to
collectively as the "Trust" or "Parallel" for purposes of
Oil and Gas Measures and Definitions
This press release contains disclosure expressed as "boe" and
"boe/day". All oil and natural gas equivalency volumes have been
derived using the ratio of six thousand cubic feet of natural gas to
one barrel of oil. Equivalency measures may be misleading,
particularly if used in isolation. A conversion ratio of six thousand
cubic feet of natural gas to one barrel of oil is based on an energy
equivalency conversion method primarily.
Parallel Energy Trust
Manager, Investor Relations
403-781-7888 or Toll-Free: 1-855-781-7888
Press spacebar to pause and continue. Press esc to stop.