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Press release from Marketwire

Parallel Energy Trust Announces Change of Operatorship of the West Panhandle Field and Operational and Hedging Update

Monday, July 09, 2012

Parallel Energy Trust Announces Change of Operatorship of the West Panhandle Field and Operational and Hedging Update16:21 EDT Monday, July 09, 2012CALGARY, ALBERTA--(Marketwire - July 9, 2012) -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" or the "Trust") (TSX:PLT.UN) today announced that Parallel Energy LP, the US operating subsidiary of the Trust, has assumed operatorship of the West Panhandle Field. The changeover in operator from Bravo Natural Gas LLC ("Bravo") was scheduled as part of Parallel's purchase of the remaining 41% interest in the West Panhandle Field which closed on April 12, 2012. The US operating team is now headed by Tony Swindell, previously VP Operations of Bravo and now VP Mid-Continent for Parallel, plus a majority of the previous operating team from Bravo. With the takeover of operatorship, Parallel now has 12 employees in the Tulsa corporate office and 33 employees in the field. Parallel continues to execute its plan to stabilize and increase production levels. Operational initiatives completed and underway include hiring of additional technical staff to monitor and maintain production levels, upgrades to compressors and installation of cooling equipment to stabilize condensate production during the summer months. As is normal in the oil and gas industry, production will continue to experience some level of volatility, however, the frequency and severity of operational issues has been significantly reduced as a result of the efforts of Tony Swindell and his team. Exit production for June was approximately 7,000 boe/day based on field data. As previously announced, Parallel Trust has commodity hedges in place through 2014. A full listing of current hedges is provided on the Trust's website at www.parallelenergy.ca. The following is a summary of current commodity price hedges for the remainder of 2012 and 2013:June to December 2012January to June 2013July to December 2013 Hedged AmountAverage Floor Price of Hedges Hedged AmountAverage Floor Price of Hedges Hedged AmountAverage Floor Price of HedgesCrude Oil1,400 bbls/dayUS$92.301,400 bbls/dayUS$98.401,100 bbls/dayUS$93.00Propane300 bbls/day equivalentUS$50.61Butane450 bbls/day equivalentUS$64.10370 bbls/day equivalentUS$67.80300 bbls/day equivalentUS$62.90Natural Gas2,000 mmbtu/dayUS$2.982,000 mmbtu/dayUS$3.23The above hedges represent approximately 60% of net revenue through to the end of 2013. As at June 30, 2012, the mark-to-market value of the commodity hedges was US$9.1 million, not including a realized hedging gain of US$0.9 million for the month of June. The Trust does not currently have any foreign exchange hedges in place."We are very pleased that we have assumed formal operatorship of the West Panhandle Field. Tony and his team have done a fantastic job to get us in position to become the operator. We would also like to thank Bravo for all of their efforts over the past 16 months as previous operator of the field and in assisting in the transition." said Dennis Feuchuk, President and CEO of Parallel Energy Trust. 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" and the debentures are listed on the TSX under the symbol "PLT.DB". 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 is set out in Parallel's annual information form dated March 21, 2012, which may be obtained on the SEDAR website at www.sedar.com under Parallel's profile. ADVISORIESForward-Looking InformationThis 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" in Parallel's annual information form dated March 21, 2012 (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, the results and timing of operational initiatives, current and future production rates and the amount and value of commodity hedges. 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. In this news release, Parallel and its subsidiaries are referred to collectively as the "Trust" or "Parallel" for purposes of convenience. Oil and Gas Measures and Definitions This press release contains disclosure expressed as "boe" and "boe/day". All oil and natural gas equivalency volumes have been derived using the ratio of six thousand cubic feet of natural gas to one barrel of oil. Equivalency measures may be misleading, particularly if used in isolation. A conversion ratio of six thousand cubic feet of natural gas to one barrel of oil is based on an energy equivalency conversion method primarily.FOR FURTHER INFORMATION PLEASE CONTACT: Dennis FeuchukParallel Energy TrustPresident and CEO403-781-7888Toll Free: 1-855-781-7888ORRick MillerParallel Energy TrustChief Financial Officer403-781-7888Toll Free: 1-855-781-7888investor@parallelenergy.ca