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Press release from Marketwire

Parallel Energy Trust Announces Initial Distribution and Provides Hedging Update

Tuesday, May 10, 2011

Parallel Energy Trust Announces Initial Distribution and Provides Hedging Update19:42 EDT Tuesday, May 10, 2011CALGARY, ALBERTA--(Marketwire - May 10, 2011) -THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO ANY UNITED STATES NEWSWIRE SERVICES OR OTHERWISE FOR DISTRIBUTION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAWS.Parallel Energy Trust ("Parallel") (TSX:PLT.UN) announced today its initial cash distribution to be paid on June 15, 2011, in respect of the period from and including April 21, 2011 to May 31, 2011, for unitholders of record on May 31, 2011 will be $0.10 per trust unit. This equates to the Trust's expected initial monthly distribution rate of $0.075 per trust unit. The ex-distribution date is May 27, 2011. Parallel also announced that subsequent to the completion of the initial public offering, its subsidiary, Parallel Energy Acquisitions LP, has entered into the following commodity hedges:Costless collar for crude oil production of 600 barrels per day with a floor price of US$105.00 and a ceiling price of US$118.00 for the period May 2011 to April 2012 Costless collar for crude oil production of 200 barrels per day with a floor price of US$106.40 and a ceiling price of US$118.00 for the period May 2011 to April 2012 Costless collar for natural gas production of 2,000 mmbtu per day with a floor price of US$4.20 and a ceiling price of US$5.20 for the period June 2011 to May 2012 These costless collars represent hedges of approximately 50% of forecasted next 12 months revenue (after royalties). Additional information regarding Parallel's hedging policy can be found in Parallel's final prospectus dated April 14, 2011 which may be obtained on the SEDAR website at www.sedar.com under Parallel's profile. ABOUT PARALLEL ENERGY TRUSTParallel's objectives are to create stable, consistent returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited low risk potential in certain regions of the United States, and to pay out a portion of available cash to holders of trust units on a monthly basis. The trust units of Parallel are listed on the Toronto Stock Exchange under the symbol "PLT.UN".Parallel is a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act).FORWARD-LOOKING STATEMENTSThis news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Parallel, including, without limitation, those listed under "Risk Factors" and "Notice to Investors-Forward-Looking Statements" in Parallel's final prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, Parallel's objectives and status as a mutual fund trust and not a SIFT trust, Parallel's expectations and estimates regarding the payment of distributions to unitholders and forecasted revenue for the next 12 months. Parallel cautions investors in Parallel's securities about important factors that could cause Parallel's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in Parallel's final prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and Parallel does not assume any obligation to update or revise them to reflect new events or circumstances.FOR FURTHER INFORMATION PLEASE CONTACT: Dennis FeuchukParallel Energy TrustPresident & CEO(403) 781-7841ORRick MillerParallel Energy TrustChief Financial Officer(403) 781-7842