Parallel Energy Trust provided capital expenditure and production guidance for 2013. Capital expenditure budget is of $14.5 million for 2013. Based on certain assumptions and current forward strip commodity prices for 2012 of $90.00 per bbl WTI, $4.00 NYMEX natural gas price and an average NGL price of 45% of WTI, and utilizing the low end of the production guidance, cash flow is forecasted to be $49 million for 2013.

Production is forecasted to average between 7,200 boe/day and 7,400 boe/day for 2013. The company's exit production rate for 2013 is forecasted to be between 7,300 boe/day and 7,400 boe/day. The main assumptions underlying this forecast are as follows: one rig operating in the Carson and Sneed areas throughout 2013; 23 gross wells drilled, of which all are forecasted to be single laterals or lateral sidetracks; average drilling cost of approximately $475,000 per well; 30 day initial production rates to average 30 boe/day gross per well; and drilling metrics of approximately $16,000 per flowing boe/day (based on the 30 day initial production rate).

As a result of decline in commodity prices, the company's all-in payout ratio for 2012 has averaged over 100% of cash flow. The company has determined that it is in the best long term interests of the company and its unitholders to reduce the all-in payout ratio to less than 100% of cash flow, based on a reasonable range of commodity price forecasts. Given the current level of commodity prices, the company will be reducing its monthly distribution to $0.05 per unit per month beginning with the distribution being announced in December. This level of distribution provides for a basic payout ratio of approximately 65% and an all-in payout ratio of approximately 95% at the low end of the company's production guidance for 2013, utilizing current forward strip prices. The company believes that this distribution level results in a sustainable model as it will allow the company to reduce bank debt while maintaining production levels.

The company also announced the retirement, effective January 1, 2013, of Dennis Feuchuk as President and CEO. Mr. Feuchuk will be replaced on an interim basis by Richard Alexander, who has been a director of the company since its inception. Mr. Alexander will act as the President and CEO until such time as a successor to Mr. Feuchuk is chosen.