RE: 3rd quarter production curtailment Hi,
The Aug 21 PR noted, that the curtailment was actually reduced, unless I am misreading the annountment.
Parallel Energy Trust ("Parallel" or the "Trust") (TSX:PLT.UN) is pleased to announce that the plant that processes production from Parallel's Carson field will be able to flare residue gas by providing Notice of Force Majeure to the appropriate regulatory agency as required under Texas state air quality regulations. This will allow Parallel to return to full production in the field. As announced on August 13, 2012, Parallel's production at the Carson field was reduced by approximately 3,000 boe/day as a result of a curtailment of all gas plants that produce into certain segments of the third party owned and operated pipeline through which the gas from the Carson field is flowed, while regulatory testing of the pipeline was completed.
The flaring of gas at the processing plant permits the field to resume full production of condensate and natural gas liquids for the 2/3 of the field's production capacity that was previously curtailed. Approximately 2,000 boe/day of condensate and natural gas liquids have been brought back on to production, which represents gross revenue of US$100,000 per day based on average commodity prices in the second quarter of 2012. As approximately 1,000 boe/day of natural gas will be flared and therefore will not be sold, sales for Parallel should be in the 6,000 boe/day range until the curtailment is lifted, which is expected to be in mid to late September. Based on average realized natural gas prices in the second quarter of 2012, gross revenue lost due to flaring is US$13,000 per day.