Parallel Energy Trust provided capital expenditure plans, and production and cash flow guidance for 2014. The company reported that its capital expenditure budget for 2014 is estimated to be approximately USD 13.5 million, which is expected to result in annual average daily production of 7,100 to 7,300 boe/day. The company also estimates cash flow of approximately USD 46 million for 2014.

This guidance is based on estimated commodity prices for 2014 of USD 95.00 per bbl of WTI, USD 4.00 per mcf of NYMEX natural gas and an average natural gas liquids price of 45% of the WTI price. The principal drilling and operations assumptions underlying this guidance are that Parallel will: drill, complete and tie-in up to 14 gross wells for a total cost of USD 9.5 million. The wells are currently expected to be single lateral wells completed using Parallel's proven drilling techniques.

The average 30 day initial production rate is anticipated to be in the range of 35 to 40 boe/day per well, resulting in capital efficiencies of less than USD 20,000 per flowing boe/day; spend approximately USD 2 million on workovers, consistent with the number of workovers Parallel completed in 2013; and purchase additional equipment and perform planned compressor overhauls in the Carson operating area for a total cost of USD 2 million.