Parallel LP, a subsidiary of Parallel Petroleum Corp., Midland, Texas, (Nasdaq: PLLL) has completed the acquisition of its Harris San Andres properties from the remaining four of 10 unaffiliated parties for a combined purchase price of approximately $23.4 million. This second closing represents approximately 3.5 million barrels of oil equivalent of the total 6.4 million barrels equivalent of proved reserves acquired for a total purchase price of approximately $44.2 million. The first closing for the acquisition occurred on Nov. 15, 2005, and represented approximately 2.9 million barrels equivalent of proved reserves for $20.8 million. The total purchase includes approximately 6,100 gross acres in Andrews and Gaines County, Texas, approximately 1,300 of which have been developed through the prior operator's drilling of the existing 35 wells. Current gross production from 35 wells is approximately 650 barrels of oil equivalent per day, or 440 barrels of oil equivalent per day, net to Parallel. Parallel will acquire, own and operate a 90% working interest in the properties. The acquisition was financed through the company's existing credit facility with BNP Paribas, Citibank Texas NA and Western National Bank, in addition to an increased borrowing base associated with the properties being acquired.

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