Parallel Energy Trust Files Preliminary Prospectus for Initial Public Offering

CALGARY, ALBERTA--(Marketwire - March 14, 2011) -

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

Parallel Energy Trust ("Parallel" or the "Trust") is pleased to announce it has filed a preliminary prospectus with the securities regulatory authorities in all provinces of Canada in connection with a proposed initial public offering of its trust units.

The offering is being made 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.

The preliminary prospectus, which contains important information relating to Parallel and the trust units, may be obtained on the SEDAR website at www.sedar.com under Parallel's profile. The preliminary prospectus is still subject to completion or amendment. There will not be any sale or acceptance of an offer to buy the trust units until a receipt for the final prospectus has been issued.

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 intends to qualify as 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).

Parallel expects to initially acquire an interest in a liquids rich natural gas property located in the West Panhandle Field in Texas (the "Panhandle Interest"). The Panhandle Interest consists of long-life reserves which are well suited for a yield-focused entity with a goal of maintaining stable distributions. Management expects to participate in a well-defined, lower risk drilling and sidetrack program to fully exploit the Panhandle Interest.

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 preliminary prospectus (collectively, "forward-looking information"). Forward-looking information in this news release includes, but is not limited to, information concerning the proposed initial public offering, the completion and receipt of necessary approvals, Parallel's objective, the acquisition of the Panhandle interest and Parallel's intended drilling program. Parallel cautions investors in the 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 preliminary 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