Exhibit 99.1
| | | | | | | |
 | | PRESS RELEASE |
| | | | | Contact: | | Cindy Thomason |
| | 1004 N. Big Spring, Suite 400 | | | | Manager of Investor Relations |
| | | Midland, TX 79701 (432) 684-3727 | | | | cindyt@plll.com |
PARALLEL PETROLEUM PRICES $150 MILLION OF 10.25% SENIOR NOTES
MIDLAND, Texas, (BUSINESS WIRE), July 26, 2007— Parallel Petroleum Corporation (“Parallel”) (NASDAQ: PLLL) announced today that it has priced its previously announced offering of $150 million of 10.25% Senior Notes due 2014 (the “Notes”). The interest payment dates on the Notes are February 1 and August 1, with interest payments commencing on February 1, 2008. The Notes are scheduled to mature on August 1, 2014.
Parallel intends to use the net proceeds of the offering to reduce its outstanding indebtedness under its revolving credit facility and to pay off its second lien term loan facility.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Act”), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Act and applicable state laws.
This announcement does not constitute an offer to sell, or the solicitation of offers to buy, any security and shall not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful.
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.
This release 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 our 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.
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