Apollo taps into Parallel Petroleum in $483m take-private

It has been a difficult year for petroleum companies, which have been adversely affected by falling oil prices. Parallel reported that its oil and gas revenues had dropped from $100m in the first half of 2008 to $38.1m in the first half of 2009. Prices are starting to rebound, with Nymex oil prices rising 2.5 per cent to $77 a barrel on Wednesday, reportedly driven by a slump in the dollar.
 
Headquartered in Texas, Parallel specialises in the exploitation, development, acquisition and production of oil and gas using drilling and 3D seismic technology, operating primarily in Texas, New Mexico, Utah and Colorado. The company’s stock had traded at highs of over $23 a share in 2008 before the oil market crash, but fell below a dollar in March 2009. It closed at $3.14 on 25 November, after which the company de-listed from the Nasdaq exchange.
 
Apollo recently made its first investment in India, taking an 11 per cent stake in direct-to-home television company DishTV. The firm will inject $100m of global depository receipts, valuing the company at just under $1bn.
 
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