Parallel Petroleum Corporation provide its fourth quarter 2007 average and February 1, 2008 estimated net daily production, work-in-progress, 2008 capital investment budget, 2007 reserves and field operations update.

The Company's net daily production for the fourth quarter ended December 31, 2007 averaged 6,707 equivalent barrels of oil per day (BOEPD), an increase of 4% when compared to an average of 6,460 BOEPD during the third quarter ended September 30, 2007. Based on information available at the time of this press release, Parallel estimates that its net daily production was approximately 7,400 BOEPD as of February 1, 2008, which is a 10% increase over fourth quarter 2007 average net daily production. During the fourth quarter 2007, production from the Company's New Mexico Wolfcamp gas project increased 24% from 1,251 to 1,551 BOEPD, due to better, and more consistent, well results and timing of completions, and as of February 1, 2008, the Company estimates that its Wolfcamp production has increased an additional 10% to approximately 1,700 BOE per day due to new wells.

Production from the Barnett Shale gas project increased only 1%, from 1,669 to 1,678 BOEPD, during the fourth quarter 2007 due to limited take-away capacity; however, as of February 1, 2008, the Company estimates that its Barnett Shale production has increased an additional 37% to approximately 2,300 BOE per day due to the completion of new wells and increased take-away capacity related to pipeline expansion and additional compression. The fourth quarter 2007 increases were partially offset by a 1% decrease in the Company's long-life Permian Basin oil projects, from 3,014 to 2,995 BOEPD, due to normal decline on base production, and an 8% decrease in its South Texas gas properties from 526 to 483 BOEPD due to normal decline. Due to uncertainties associated with initial decline rates of new wells and uncertainties associated with timing of take-away capacity and related pipeline expansion and compression, management cautions investors not to place undue reliance on February 1, 2008 estimated net daily production for the purpose of estimating the Company's future net daily production.

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