from Scotia Daily Edge ■ Parallel released an operational and financial update and announced the
closing of an acquisition.
Implications
■ Production in line with estimates. Third quarter production of 7,400
boe/d was in line with our estimate of 7,341 boe/d. Parallel has
reiterated its 2014 production guidance of 7,100-7,300 boe/d.
■ Drilling program completed. Parallel drilled and completed three
wells in the Carson operating area during the third quarter, completing
its 2014 drilling program. The average 30-day IP rate for the 14 wells
drilled in 2014 was 60 boe/d, which exceeded the trust's expectation of
35-40 boe/d.
■ Acquisition of Garfield County assets announced. Parallel
announced that it has closed an acquisition of an average 23% working
interest in eight producing wells in the Garfield County, Oklahoma
operating area. The acquisition will add 100 boe/d of liquids-rich
natural gas and oil production at a total cost of US$2.1M.
Recommendation
■ We maintain our Sector Perform rating and one-year target price of
$4.50/unit.