Parallel Energy Trust Announces Closing of Over-Allotment Option

CALGARY, ALBERTA--(Marketwire - May 3, 2011) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Parallel Energy Trust (TSX:PLT.UN) ("Parallel" or the "Trust") is pleased to announce that the underwriters, in connection with the Trust's previously announced initial public offering, which closed on April 21, 2011, have exercised their over-allotment option in full. Accordingly, an additional 5,130,000 trust units have been issued today at a price of $10.00 per unit for total gross proceeds of $51.3 million. The net proceeds of the over-allotment option and an advance under a credit facility will be used by Parallel to acquire an additional 8% interest in its liquids rich natural gas property located in the West Panhandle Field in Texas for approximately US$59.2 million.

As a result of the acquisition of an additional 8% interest, Parallel's interest in the property in the West Panhandle Field will total 59%.

The trust units of Parallel are listed on the Toronto Stock Exchange under the symbol "PLT.UN".

The initial public offering was completed through a syndicate of underwriters co-led by CIBC, RBC Capital Markets and Scotia Capital Inc., and including BMO Capital Markets, TD Securities Inc., Canaccord Genuity Corp., National Bank Financial Inc., Desjardins Securities, HSBC Securities (Canada) Inc., FirstEnergy Capital Corp. and Peters & Co. Limited.

Parallel intends to make monthly distributions of a portion of its available cash to unitholders. The Trust expects that the initial monthly cash distribution rate will be $0.075 per unit. The initial cash distribution, which will be for the period from and including the closing date to May 31, 2011, is expected to be paid on June 15, 2011 to unitholders of record on May 31, 2011 and is estimated to be $0.10 per unit.

Further information relating to Parallel and the trust units is set out in Parallel's final prospectus dated April 14, 2011, which may be obtained on the SEDAR website at www.sedar.com under Parallel's profile.

The securities being offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States unless pursuant to an exemption there from. This press release is for information purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities of Parallel Energy Trust in any jurisdiction.

ABOUT PARALLEL ENERGY TRUST

Parallel's objective is to create stable, consistent returns for investors through the acquisition and development of conventional oil and natural gas reserves and production with unexploited low risk potential, located in certain regions of the United States and to pay out a portion of available cash to holders of trust units on a monthly basis.

Parallel is a "mutual fund trust" under the Income Tax Act (Canada) (the "Tax Act"). The Trust will not be a "SIFT trust" (as defined in the Tax Act), provided that the Trust complies at all times with its investment restriction which precludes the Trust from holding any "non-portfolio property" (as defined in the Tax Act).

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Parallel, including, without limitation, those listed under "Risk Factors" and "Notice to Investors-Forward-Looking Statements" in Parallel's final prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, Parallel's objectives and status as a mutual fund trust and not a SIFT trust, Parallel's expectations and estimates regarding the payment of distributions to unitholders and the acquisition of the additional 8% interest in the property in the West Panhandle Field. Parallel cautions investors in Parallel's securities about important factors that could cause Parallel's actual results to differ materially from those projected in any forward-looking statements included in this news release. Any statements that express, or involve discussions as to, expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and may be forward-looking and may involve estimates, assumptions and uncertainties which could cause actual results or outcomes to differ materially from those expressed in such forward-looking statements. No assurance can be given that the expectations set out in Parallel's final prospectus or herein will prove to be correct and accordingly, prospective investors should not place undue reliance on these forward-looking statements. These statements speak only as of the date of this press release and Parallel does not assume any obligation to update or revise them to reflect new events or circumstances.

All material information pertaining to Parallel Energy Trust may be found at www.sedar.com.