Parallel Petroleum Corporation declares its first quarter 2008 average net daily production, work-in-progress, and field operations update.

The Company's net daily production for the first quarter ended March 31, 2008 averaged 7,592 equivalent barrels of oil per day (BOEPD), an increase of 13% when compared to an average of 6,707 BOEPD during the fourth quarter ended December 31, 2007. During the first quarter 2008, production from the Company's Barnett Shale gas project increased 50%, from 1,678 to 2,520 BOEPD, due to the completion of new wells and increased take-away capacity related to pipeline expansion and additional compression. Production from the New Mexico Wolfcamp gas project increased 16%, from 1,551 to 1,795 BOEPD, during the first quarter 2008 due to better, and more consistent, well results and timing of completions. The first quarter 2008 increases were partially offset by a 3% decrease in the Company's long-life Permian Basin oil projects, from 2,995 to 2,897 BOEPD, due to development timing and normal decline on base production, and a 21% decrease in its South Texas short-life gas properties from 483 to 380 BOEPD due to normal decline.

As of March 31, 2008, the Company had 38 gross (11.96 net) wells in progress. Of the 38 gross wells, 31 gross (9.51 net) wells were shut-in awaiting pipeline, completing or awaiting completion, and 7 gross (2.45 net) wells were drilling. Of the 31 wells that were shut-in awaiting pipeline, completing or awaiting completion, 27 gross (6.20 net) wells were in the Barnett Shale, 2 gross (2.00 net) wells were in the Wolfcamp, and 2 gross (1.31 net) wells were in the Permian Basin. Of the 7 wells that were drilling, 4 gross (0.82 net) wells were drilling in the Barnett Shale, 2 gross (0.97 net) wells were drilling in the Wolfcamp, and 1 gross (0.66 net) well was drilling in the Permian Basin. Please refer to Table 2 at the end of this press release for a summary of work-in-progress on certain of Parallel's properties as of March 31, 2008.

Larry C. Oldham, Parallel's President, commented, "As evidenced by our 13% increase in first quarter 2008 production compared to fourth quarter 2007, we are achieving one of our stated goals of increasing our production during 2008. Along with this production growth, we are also anticipating a net increase in proved developed producing (PDP) reserves when we report our mid-year 2008 reserves update."

In a final comment, Oldham stated, "The increases in production and PDP reserves are expected to continue as drilling continues and take-away capacity is increased in the Barnett Shale gas project; development drilling continues in our New Mexico Wolfcamp gas project; and infill development and waterflood implementation continues on the majority of our West Texas Permian Basin oil projects."

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