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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (Date of earliest event reported): August 4, 2004
PARALLEL PETROLEUM CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Delaware 0-13305 75-1971716
(State or other jurisdiction (Commission File (IRS Employer
of Incorporation or organization) Number) Identification No.)
1004 N. Big Spring, Suite 400, Midland, Texas 79701
(Address of Principal Executive Offices) (Zip Code)
432-684-3727
(Registrant's telephone number, including area code)
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Item 9. Regulation FD Disclosure.
Parallel Petroleum Corporation wishes to disclose its press release,
dated August 4, 2004, relating to its oil and gas reserves as of June 30, 2004.
In accordance with General Instruction B.2 of Form 8-K, the information
included in Exhibit 99.1 hereto is being furnished under this Item 9 and shall
not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act
of 1934, shall not be subject to the liabilities of that section and shall not
be deemed incorporated by reference in any filing under the Securities Act of
1933 or the Securities Exchange Act of 1934, except as shall be expressly set
forth by specific reference in such a filing.
Item 12. Results of Operations and Financial Condition.
The information included in Exhibit 99.1 hereto is also being furnished
under this Item 12 and, in accordance with General Instruction B.6 of Form 8-K,
shall not be deemed "filed" for purposes of Section 18 of the Securities
Exchange Act of 1934, shall not be subject to the liabilities of that section
and shall not be deemed incorporated by reference in any filing under the
Securities Act of 1933 or the Securities Exchange Act of 1934, except as shall
be expressly set forth by specific reference in such a filing.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PARALLEL PETROLEUM CORPORATION
By: /s/ Larry C. Oldham
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Larry C. Oldham, President and
Chief Executive Officer
Dated: August 4, 2004
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<page>
Exhibit 99.1
PRESS RELEASE
Parallel Petroleum Corporation
1004 N. Big Spring Street, Suite 400 Contact: Cindy Thomason
Midland, TX 79701 (432) 684-3727 Manager of Investor Relations
http://www.plll.com cindyt@plll.com
PARALLEL PETROLEUM INCREASES PDP RESERVES
BY 360% OF FIRST SIX-MONTHS PRODUCTION
MIDLAND, Texas, (BUSINESS WIRE), August 4, 2004 - Parallel Petroleum Corporation
(NASDAQ: PLLL) today announced that it increased its proved developed producing
(PDP) reserves approximately 2.02 million BOE in the first six months of 2004,
which includes 0.54 million BOE transferred from its proved developed
non-producing (PDNP) reserves to proved developed producing (PDP) reserves and
1.48 million BOE of new proved developed producing (PDP) reserves. The
approximate 2.02 million BOE increase to its proved developed producing (PDP)
reserves is approximately 360% of its production of approximately 0.56 million
BOE for the six months ended June 30, 2004.
Parallel's total proved reserve volumes, net of production, increased
approximately 6% to 15.72 MMBOE as of June 30, 2004, compared to 14.79 MMBOE as
of December 31, 2003. The Company's proved developed producing (PDP) reserves,
net of production, increased approximately 15% to 11.41 MMBOE as of June 30,
2004, compared to 9.95 MMBOE as of December 31, 2003. Parallel's proved
developed non-producing (PDNP) reserves decreased 0.54 million BOE as a result
of transfers to proved developed producing (PDP) reserves, and proved
undeveloped (PUD) reserves did not change during the six months ended June 30,
2004. The increase in proved developed producing (PDP) reserve volumes was
primarily due to the refracs on the Company's Fullerton properties in Andrews
County and initial drilling and workover results on its Diamond M Shallow
project in Scurry County, both of which are located in the Permian Basin of West
Texas.
Parallel's SEC PV-10% total proved reserve value increased approximately 15% to
approximately $169.55 million as of June 30, 2004, compared to approximately
$147.79 million as of December 31, 2003. The 15% increase in present value of
total proved reserves was due to three factors: an 8% increase in oil reserve
volumes, a 13% increase in oil prices, and a 4% increase in natural gas prices
as of June 30, 2004, compared to December 31, 2003.
The following table shows certain information about Parallel's proved reserves
as of December 31, 2003, and June 30, 2004.
<table>
December 31, June 30, Percentage
2003 (a) 2004 (a) Change
--------------- ---------------- -------------
<s> <c> <c> <c>
Oil (MMBbls) 12.08 13.02 8%
Gas (Bcfg) 16.27 16.21 0%
MMBOE 14.79 15.72 6%
SEC Reserve Categories:
PDP (MMBOE) (b) 9.95 11.41 (c) 15%
PDNP (MMBOE) (d) 1.00 0.46 (54%)
PUD (MMBOE) (e) 3.84 3.84 0%
------ -----
Total proved reserves (MMBOE) 14.79 15.72 6%
----- -----
Pretax PV-10% ($MM) $147.79 (f) $169.55 (g) 15%
Price of oil per Bbl $30.63 $34.75 13%
Price of natural gas per Mcf $5.45 $5.69 4%
</table>
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(a) Based on independent reserve studies prepared by Cawley, Gillespie &
Associates.
(b) PDP is proved developed producing reserves.
(c) Net of 0.56 MMBOE of production for the six months ended June 30, 2004.
(d) PDNP is proved developed non-producing reserves.
(e) PUD is proved undeveloped reserves.
(f) Based on December 31, 2003, oil and natural gas prices.
(g) Based on June 30, 2004, oil and natural gas prices.
more
Parallel Petroleum Corporation
August 4, 2004
Page 2
Management Comments
Larry C. Oldham, Parallel's President and CEO, commented, "Our primary focus is
to increase shareholder value through increasing reserves and production. This
mid-year reserve evaluation validates this potential in two of our primary
projects, whereby we have increased the Company's proved developed producing
reserves by 15%, net of production. As our high decline rate assets, onshore the
gulf coast of South Texas, continue to deplete, we continue to add production
and reserve growth from our longer reserve life projects."
The Company
Parallel Petroleum is an independent energy company headquartered in Midland,
Texas, primarily engaged in the acquisition, development, exploration and
production of oil and gas using enhanced oil recovery techniques and 3-D seismic
technology. Additional information on Parallel Petroleum Corporation is
available at www.plll.com.
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 "may," "will," "expect," "intend," "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,
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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