Parallel Energy Trust reported its capital expenditure plans and production forecast for 2013, a change to its distribution level and a change in senior management.

Capital Expenditure Plans

Parallel is announcing a capital expenditure budget of $14.5 million for 2013 with production forecasted to average between 7,200 and 7,400 boe/day for the year. The Trust's exit production rate for 2013 is forecasted to be between 7,300 and 7,400 boe/day. The main assumptions underlying this forecast are as follows:

• one rig operating in the Carson and Sneed areas throughout 2013; • 23 gross wells drilled, of which all are forecasted to be single laterals or lateral sidetracks; • average drilling cost of approximately $475,000 per well; • 30 day initial production rates to average 30 boe/day gross per well; and, • drilling metrics of approximately $16,000 per flowing boe/day (based on the 30 day initial production rate).

In addition, Parallel may participate in up to three gross wells (0.6 net wells) in a Mississippian Lime play located in Oklahoma. The Trust recently purchased a 20% interest in the prospect comprising 650 net acres, which currently has no production.

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