Parallel Petroleum Corporation Closes Change of Control Offer for Its 10 1/4% Senior Notes Due 2014

MIDLAND, Texas--(BUSINESS WIRE)--Parallel Petroleum Corporation (“Parallel”) today announced the closing of its change of control offer for any and all of its outstanding $150,000,000 principal amount of 10 1/4% Senior Notes due 2014 (the “Notes”). As required by the indenture governing the Notes, the purchase price with respect to each series of Notes equaled 101% of the principal amount of such series of Notes, plus accrued interest payable with respect to the Notes to December 2, 2009 (the “Payment Date”).

Based upon final results from Wells Fargo Bank, National Association, the depositary for the tender offer, of the $150,000,000 aggregate principal amount of the Notes outstanding, Parallel purchased $150,000,000 aggregate principal amount of the Notes. Parallel effected payment of the validly tendered Notes on the Payment Date by depositing immediately available funds with the depositary, which in turn is required to transmit payment to tendering holders of Notes.

The change of control offer was made pursuant to Parallel’s obligations under the indenture governing the Notes, which requires Parallel to make an offer to purchase the Notes following a “Change of Control” (as defined in the indenture). A “Change of Control” occurred on October 23, 2009 upon consummation of a tender offer for all the outstanding shares of common stock of Parallel by an affiliate of Apollo Global Management, LLC.

About Parallel Petroleum Corporation

Parallel Petroleum Corporation is an independent energy company headquartered in Midland, Texas, engaged in the exploitation, development, acquisition 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. Additional information on Parallel is available via the internet at www.plll.com.