Parallel Petroleum Announces Sale of Common Stock Offering

    Business Editors/Energy Editors

    MIDLAND, Texas--(BUSINESS WIRE)--Feb. 9, 2005--Parallel Petroleum Corporation (NASDAQ:PLLL) today announced that it sold 5,750,000 shares of its common stock pursuant to a public offering at a price of $5.27 per share, resulting in net proceeds of approximately $28.0 million. The common shares were issued under Parallel's universal shelf registration statement on Form S-3 (Registration Statement No. 333-119725).
    Jefferies & Company, Inc. acted as the sole manager for the offering.
    This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any state.

    The Company

    Parallel Petroleum is an independent energy company headquartered in Midland, Texas, primarily engaged in the acquisition, development, exploration and production of oil and gas using enhanced oil recovery techniques and 3-D seismic technology. Additional information on Parallel Petroleum Corporation is available at www.plll.com.
    This release contains forward-looking statements subject to various risks and uncertainties that could cause the company's future plans, objectives and performance to differ materially from those in the forward-looking statements. Forward-looking statements can be identified by the use of forward-looking terminology such as "may," "will," "expect," "intend," "subject to," "anticipate," "estimate," "continue," "present value," "future," "reserves", "appears," "prospective," or other variations thereof or comparable terminology. Factors that could cause or contribute to such differences could include, but are not limited to, those relating to the results of exploratory drilling activity, the company's growth strategy, changes in oil and natural gas prices, operating risks, availability of drilling equipment, outstanding indebtedness, changes in interest rates, dependence on weather conditions, seasonality, expansion and other activities of competitors, changes in federal or state environmental laws and the administration of such laws, and the general condition of the economy and its effect on the securities market. While we believe our forward-looking statements are based upon reasonable assumptions, these are factors that are difficult to predict and that are influenced by economic and other conditions beyond our control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

--30--JS/na*

CONTACT: Parallel Petroleum Corporation, Midland Investor Relations: Cindy Thomason, 432-684-3727 cindyt@plll.com http://www.plll.com

KEYWORD: TEXAS INDUSTRY KEYWORD: OIL/GAS ENERGY SOURCE: Parallel Petroleum Corporation

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