On March 31, 2009, the Compensation Committee of the Board of Directors of Parallel Petroleum Corporation, or the "Company", finalized its assessment of the Company's performance under its Annual Incentive Plan, or "AIP". Based upon the AIP, the following cash bonuses for 2008 calendar year performance were awarded to each named executive officer as follows:

                                                                          Cash
                                                                          Award
     Name                               Position                         Amount

     Larry C. Oldham      President and Chief Executive Officer         $ 149,940

     Donald E. Tiffin     Chief Operating Officer                       $ 119,340

     Steven D. Foster     Chief Financial Officer                       $  76,500

     Eric A. Bayley       Vice President of Corporate Engineering       $  58,140

     John S. Rutherford   Vice President of Land and Administration     $  58,140

As permitted by the AIP, the Compensation Committee reduced each executive's calculated award amount by 10%, resulting in the cash award amounts shown above. For a more detailed description of the Company's AIP, see the description set forth in the Company's Current Report on Form 8-K filed with the Securities and Exchange Commission on December 8, 2008, which is incorporated herein by reference.