Parallel LP, a subsidiary of Parallel Petroleum Corp., Midland, Texas, (Nasdaq: PLLL) plans to acquire producing and undeveloped properties from 10 unaffiliated parties for a total purchase price of $44.5 million. The 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. The properties have an estimated 6.4 million barrels of oil equivalent of proved reserves, a 29% increase to the company's proved reserves at year-end 2004. 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 will be 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. Several separate closings are expected to occur from Nov. 15, 2005, through Jan. 15, 2006.