The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Globe Investor

News Sources

Take control of your investments with the latest investing news and analysis

Press release from Marketwire

Parallel Energy Trust Confirms September Distribution, Announces Distribution Reinvestment Plan and Provides Operational Update

Monday, September 12, 2011

Parallel Energy Trust Confirms September Distribution, Announces Distribution Reinvestment Plan and Provides Operational Update16:01 EDT Monday, September 12, 2011CALGARY, ALBERTA--(Marketwire - Sept. 12, 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 (TSX:PLT.UN) ("Parallel" or the "Trust") confirms that its cash distribution to be paid on October 14, 2011, in respect of the period from and including September 1, 2011 to September 30, 2011, to unitholders of record on September 30, 2011 will be $0.075 per trust unit. The ex-distribution date is September 28, 2011. Parallel also announced that subject to receiving regulatory approval, the Trust will adopt a Distribution Reinvestment Plan (the "Plan) with the target of having the Plan in place in the fourth quarter 2011. The Plan will provide eligible unitholders with the opportunity to reinvest their monthly cash distributions in new trust units at a discount to the average market price of the units (to be defined in the Plan). Further details will be provided once the Trust has obtained regulatory approval and finalized the details of the Plan.Parallel also announced that since the end of June 2011, there have been an additional eight gross wells drilled, of which six are currently on production, and nine gross well clean-outs completed on its West Pandhandle field. Current production, based on field data, is approximately 4,000 boe/day net to Parallel's interest. "We continue to be very pleased with the results of the drilling and well clean-out program" said Dennis Feuchuk, CEO of the Trust "Production has been increasing as expected and is being added at very attractive metrics. We continue to believe that our distribution is sustainable with sufficient cash flow and debt capacity to continue to grow production." ABOUT PARALLEL ENERGY TRUST Parallel'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). Further information relating to Parallel and the trust units is set out in Parallel's final prospectus. FORWARD-LOOKING STATEMENTS This 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, Parallel's intention to institute a Distribution Reinvestment Plan and Parallel's estimate of production levels. 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 and CEO403-781-7888 or Toll Free: 1-855-781-7888ORRick MillerParallel Energy TrustChief Financial Officer403-781-7888 or Toll Free: 1-855-781-7888investor@parallelenergy.ca