Parallel Energy Trust T.PLT.DB

RE: Q2

[Al42]

Looks like a decent Qtr. but this scares me...

Parallel has recently been advised that there will be 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 is completed. The operator has estimated that the testing will be completed by mid to late September. This curtailment will result in the production from the Carson field being reduced by up to 2/3 of its current level. There is no certainty as to the duration and amount of the curtailment, however, Parallel estimates that it could reduce production by up to 3,000 boe/day for a six week period. Assuming that production was curtailed for this amount and duration, it would reduce the Trust's full year average production by approximately 350 boe/day. Given the uncertainty as to the duration and amount of the curtailment, it is not currently reflected in the revised production guidance.