Parallel expands stakes in West Texas fields

Ray Tyson

Parallel Petroleum has purchased an additional 13.2 percent working interest and 10 percent net revenue interest associated with the independent’s producing properties in the Means Queen unit and Carm-Ann San Andres fields in the Permian basin of West Texas, the company said Dec. 31.

The additional interests were purchased from 17 unaffiliated parties for a combined purchase price of about $2.85 million.

The 17 purchases represent a combined estimated 500,000 barrels of oil equivalent of proved oil and gas reserves, with current production of roughly 50 barrels per day net to Parallel.

The properties are in Andrews and Gaines counties and produce from the Queen and San Andres formations at depths of about 4,200 to 4,900 feet, and consist of 25 leases covering about 5,360 contiguous acres, with 67 producing oil wells.

Parallel’s average working interest in the West Texas properties increased from 56.6 percent to 69.8 percent and the company’s average net revenue interest increased from 43.8 percent to 53.8 percent.