Parallel Energy Trust Announces Fourth Quarter and Year End 2013 Financial Results; 2013 Year End Reserve Report and Operational

Parallel Energy Trust Announces Fourth Quarter and Year End 2013 Financial 
Results; 2013 Year End Reserve Report and Operational Update 
NEWS RELEASE TRANSMITTED BY Marketwired 
FOR: Parallel Energy Trust 
TSX SYMBOL:  PLT.UN
TSX SYMBOL:  PLT.DB 
MARCH 20, 2014 
Parallel Energy Trust Announces Fourth Quarter and Year End 2013 Financial
Results; 2013 Year End Reserve Report and Operational Update 
CALGARY, ALBERTA--(Marketwired - March 20, 2014) - Parallel Energy Trust
("Parallel" or the "Trust") (TSX:PLT.UN)(TSX:PLT.DB) is
pleased to announce its financial and operating results for the three and
twelve months ended December 31, 2013, and to provide a summary of its 2013
year end reserve report. 
Parallel's audited year end financial statements and accompanying
Management's Discussion and Analysis ("MD&A") will be filed
shortly on the SEDAR website at www.sedar.com and on the Trust's website
at www.parallelenergy.ca. 
Summary of 2013 Financial and Operating Results 
/T/ 
---------------------------------- 
Quarter  Quarter     Year     Year 
ended    ended    Ended    Ended 
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
($000s, except where indicated)             2013     2012     2013     2012
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Production                                                                 
  Natural gas (mcf/day)                   14,842   14,945   14,594   12,331
  Condensate (bbls/day)                    1,803    1,821    1,715    1,423
  Natural Gas Liquids (bbls/day)           2,943    2,684    3,000    2,448
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  Total (@6:1) (boe/day)                   7,220    6,996    7,147    5,926
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Average sales price (US$ per boe)          44.49    40.18    42.62    39.85
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Revenue, net of royalties                 25,274   20,882   93,430   70,441
Funds from operations(1)                  11,306    7,847   41,964   35,049
Net income                                 9,912  (84,602)  10,088  (69,956)
Distributions                              8,028   10,920   31,862   44,205
Capital expenditures excluding                                             
 acquisitions                                720    5,743   11,367   27,119 
Bank debt outstanding (US$)              154,039  148,651  154,039  148,651
Convertible debentures (CAD$)             63,000   63,000   63,000   63,000 
Unitholder's equity                      286,481  281,409  286,481  281,409
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(1) Non-GAAP measure. Readers are referred to Advisories at the end of the  
press release for additional information.                               
/T/ 
Fourth Quarter 2013 Financial and Operating Highlights 
During the fourth quarter of 2013, Parallel: 
/T/ 
--  Recorded average daily production of 7,220 boe/day (66% natural gas 
liquids and condensate), an improvement of 2% compared to production of 
7,100 boe/day in the third quarter of 2013. 
--  Realized an average sales price (prior to hedging) of US$44.49 per boe, 
representing approximately 46% of the average WTI price during the 
quarter. 
--  Generated funds from operations of $11.3 million ($0.21 per unit, basic) 
an increase of 5% compared to $10.8 million funds from operations in the 
third quarter of 2013. 
--  Recorded a net impairment reversal of $7.4 million on the Trust's oil 
and gas assets which was predominantly due to higher reserve volumes in 
the Sneed and Carson operating areas, partially offset by lower 
forecasted commodity prices. 
--  Reduced bank debt by approximately US$4.2 million during the quarter. 
This resulted in total bank debt of US$154.0 million drawn against the 
Trust's borrowing base of US$190.0 million. 
--  Declared total distributions of $0.15 during the quarter, representing 
$0.05 per unit per month for October, November and December.  
/T/ 
2013 Year End Financial and Operating Highlights 
During the full year 2013, Parallel: 
/T/ 
--  Achieved record annual average daily production of 7,147 boe/day, which 
exceeded the Trust's full year guidance of 7,000 boe/day. 
--  Drilled, completed and tied-in a total of 12 gross wells (11.2 net 
wells) in the Texas and Oklahoma operating areas and experienced a 100% 
success rate. The average 30 day initial production ("IP30") rate was 40 
boe/day, resulting in drilling efficiencies of approximately $14,000 per 
flowing boe/day. 
--  Completed 91 cleanouts to the Trust's existing wells and confirmed 
Parallel's decline rates of 8-10%. 
--  Generated funds from operations of $42.0 million ($0.79 per unit, 
basic). 
--  Completed the acquisition of the Cargray operating area which added 
approximately 200 boe/day of liquids-rich natural gas to the Trust's 
production base at accretive metrics. 
--  Declared total distributions of $0.60 during the year, equal to $0.05 
per unit per month.  
/T/ 
2013 Year End Reserve Report 
The following information is provided on the Trust's reserves as at
December 31, 2013, as evaluated by the Trust's independent reserves
engineering firm, Ryder Scott. The evaluation of Parallel's petroleum and
natural gas reserves was conducted pursuant to National Instrument 51-101 -
Standards of Disclosure for Oil and Gas Activities - ("NI 51-101")
and the Canadian Oil and Gas Evaluation Handbook ("COGEH") reserves
definitions. 
2013 Reserves Summary 
(Company interest before royalties - December 31, 2013) 
/T/ 
-------------------------------- 
2013 Total       2012 Total      
Oil              Oil      
Equivalent       Equivalent      
(mboe)   %       (mboe)   %
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Proved developed producing (PDP)               32,985   67      30,307   64
Proved undeveloped                              9,521   19       9,397   20
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  Total proved                                 42,506   86      39,703   84
Probable                                        6,994   14       7,507   16
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  Total proved plus probable (P+P)             49,500  100      47,210  100
--------------------------------------------------------------------------- 
/T/ 
Net Present Value of Future Revenue 
(Company interest - December 31, 2013 escalated price forecast) 
/T/ 
------------------------------- 
2013 10%         2012 10%     
Present value of cash flows before tax       Discount         Discount     
(US$000s)                                        Rate    %        Rate    %
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PDP                                         $ 373,856   76   $ 366,334   74
Proved undeveloped                             50,981   10      62,279   12
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  Total proved                                424,837   86     428,614   86
Probable                                       66,437   14      71,885   14
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  P+P                                       $ 491,274  100   $ 500,500  100
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CAD/US Exchange Rate at Dec. 31              $ 1.0636         $ 0.9949     
  P+P (C$000s)                              $ 522,519        $ 497,947     
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/T/ 
2013 Year End Reserve Report Highlights 
/T/ 
--  Increased proved developed producing reserves by 9% and total proved 
plus probable reserves by 5% between December 31, 2012 and December 31, 
2013. The increase was primarily due to above forecasted drilling 
results in 2013 and the Trust's assets experiencing a lower decline rate 
than previously forecast. 
--  Reported a reserve life index of 13 years for PDP reserves and 19 years 
for P+P reserves based on the mid-point of the Trust's 2014 production 
guidance of 7,200 boe/day. 
--  Reported a total of over 150 gross potential drilling locations after 
having drilled 12 gross wells in 2013. At the 2014 estimated drilling 
pace of 14 gross wells, this represents over 10 years of drilling 
locations.  
/T/ 
Operational Update 
Many oil and gas producing areas in the United States experienced extreme
winter weather conditions between November 2013 and March 2014. During these
winter months, the Trust's operating areas in Northern Texas experienced
over 30 days in which the temperature fell below 20 degrees Fahrenheit (-7
degrees Celsius), which is the highest number of days in almost 20 years and
double the average during that period. At temperatures below 20 degrees
Fahrenheit, oil and gas operating areas in certain regions of the United States
tend to experience equipment freezing, facility and transportation disruptions,
power outages and other operating challenges which can materially impact oil
and gas production levels. The Trust's operating areas were not immune to
these challenges and, as a result, the Trust has recorded average daily
production to date in 2014 of approximately 6,500 boe/day based on field data,
which exceeded the Trust's three to five per cent contingency for downtime
in the first quarter. However, weather conditions in Parallel's operating
areas have begun to normalize and the Trust's production is beginning to
return to expected levels. Despite the year-to-date performance, Parallel
retains its full year production guidance of 7,100 to 7,300 boe/day in 2014. 
To date in 2014, Parallel has drilled, completed and tied-in a total of four
wells in the Carson operating area. Not all of the wells have been on
production for 30 days; however, initial results indicate that the wells are
achieving, on average, production levels that at least meet or exceed
Parallel's 2014 initial production rate guidance of 35 to 40 boe/day. 
President's Message - Rick Alexander, President & CEO 
"In 2013 we implemented several changes to stabilize our operations and
better manage our business. These changes led to record annual production and
cash flow which significantly improved our ability to manage a sustainable
business model that supports our $0.05 monthly distribution. Building on this
momentum, we set what we believe are realistic production and cash flow targets
for 2014 and, while we have experienced challenging operating conditions to
date, we remain confident that we can achieve our full year guidance." 
"Our 2013 reserve report confirmed our analysis that our assets have a
lower decline rate than previously believed. In 2013, we increased total
reserves by five per cent and replaced nearly double our 2013 total production,
which reflects our lower decline rates and improved drilling results during the
year. Our total reserve life index also increased to 13 years for proved
developed producing reserves and 19 years for total proved plus probable
reserves, which are at or near the highest in the industry and ideal for a
distribution-paying energy income trust." 
"Our success over the past year is largely due to the hard work and
dedication of our U.S. operating team. Thanks to their efforts, we are well
positioned to execute our 2014 drilling and workover programs and we expect to
begin to realize the benefits of these programs in the coming months. We look
forward to providing updates on our 2014 drilling program with the release of
our first quarter financial and operating results in early-May." 
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 21, 2012, which may be obtained on the SEDAR
website at www.sedar.com under Parallel's profile. 
ADVISORIES 
Forward-Looking Information 
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
21, 2012 (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
convenience. 
Non-GAAP Measures 
This press release contains the term "funds from operations". This
term is not a recognized measure under Canadian generally accepted accounting
principles (GAAP). Parallel believes that in addition to net income, funds from
operations is a useful supplemental measurement. Funds from operations provides
an indication of the funds generated by the Trust's principal business
activities and is defined as "cash from operating activities" prior
to workovers and "change in non-cash working capital related to operating
activities" in the Statement of Cash Flows. 
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. 
-30-
FOR FURTHER INFORMATION PLEASE CONTACT: 
Parallel Energy Trust
Curtis Pelletier
Manager, Investor Relations
403-781-7888 or Toll-Free: 1-855-781-7888
investor@parallelenergy.ca 
INDUSTRY:  Energy and Utilities - Oil and Gas  
SUBJECT:  ERN 
-0-
-0- Mar/20/2014 12:00 GMT
 
 
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