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<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
<FONT style="font-size: 12pt">Washington, D.C. 20549
</FONT></B>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934</B>

<P align="center" style="font-size: 10pt"><B>Date of Report (Date of earliest event reported): May 20, 2009</B>

<P align="center">

<P align="center" style="font-size: 24pt"><B>PARALLEL PETROLEUM CORPORATION<BR></B>
<FONT style="font-size: 10pt">(Exact name of registrant as specified in its charter)
</FONT>

<TABLE border="0" width="100%" cellspacing="0" cellpadding="0" style="font-size: 10pt; text-align: center">
<TR>
    <TD width="32%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="33%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
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<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>Delaware</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>0-13305</B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>75-1971716</B></TD>
</TR>
<TR valign="top">
    <TD>(State or other Jurisdiction of Incorporation)</TD>
    <TD>&nbsp;</TD>
    <TD>(Commission File Number)</TD>
    <TD>&nbsp;</TD>
    <TD>(IRS Employer Identification No.)</TD>
</TR>
</TABLE>

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<TR>
    <TD width="49%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="49%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD style="border-bottom: 1px solid #000000"><B>1004 N. Big Spring, Suite 400, Midland, Texas<BR></B></TD>
    <TD>&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000"><B>79701</B></TD>
</TR>
<TR valign="top">
    <TD>(Address of Principal Executive Offices)</TD>
    <TD>&nbsp;</TD>
    <TD>(Zip Code)</TD>
</TR>
</TABLE>

<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: <B>(432) 684-3727</B>


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    <TD nowrap style="border-bottom: 1px solid #000000"><B>Not Applicable<BR></B></TD>
</TR>
<TR>
    <TD nowrap>(Former name or former address if changed since last report.)</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:

<P align="left" style="font-size: 10pt">
<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))<BR><BR>
<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))<BR>


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    <TD width="3%" nowrap align="left">Item&nbsp;5.02.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><DIV style="text-align: justify">Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers;
Compensatory Arrangements of Certain Officers</DIV></TD>
</TR>

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<P align="justify" style="font-size: 10pt; text-indent: 4%"><I>Stock Option Grants to Executive Officers</I>


<P align="justify" style="font-size: 10pt; text-indent: 4%">At a meeting of the Compensation Committee (the &#147;Committee&#148;) of the Board of Directors of Parallel Petroleum
Corporation (the &#147;Company&#148;) held on May&nbsp;20, 2009, the Committee approved and granted nonqualified stock options to each
of the Company&#146;s executive officers as follows:

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<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Name of</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">Executive Officer</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Number of Shares of Common</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left">and Position</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">Stock Underlying Stock</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">with Company</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Option</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="2" style="border-bottom: 1px solid #000000">Exercise Price</TD>
    <TD>&nbsp;</TD>
</TR>

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    <TD><DIV style="margin-left:10px; text-indent:-10px">Larry C. Oldham<BR>Chief Executive Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">104,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Donald E. Tiffin<BR>Chief Operating Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">91,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Steven D. Foster<BR>Chief Financial Officer</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">52,000</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:10px; text-indent:-10px">John S. Rutherford<BR>Vice President of Land and
Administration</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Eric A. Bayley<BR>Vice President of Engineering</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">35,750</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
</TR>
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<P align="justify" style="font-size: 10pt; text-indent: 4%">The exercise price of the options is the grant date closing sales price of the Company&#146;s common stock on the
Nasdaq Global Select Market.


<P align="justify" style="font-size: 10pt; text-indent: 4%">All of the options are for a term of ten years and vest in four equal annual installments beginning on May&nbsp;20,
2009.


<P align="justify" style="font-size: 10pt; text-indent: 4%">The form of nonqualified stock option agreement is incorporated herein by reference.


<P align="center" style="font-size: 10pt">-2-




<P align="center" style="font-size: 10pt">&nbsp;

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<P align="justify" style="font-size: 10pt">Item&nbsp;9.01 Financial Statements and Exhibits


<P align="justify" style="font-size: 10pt; text-indent: 4%">(d)&nbsp;Exhibits.

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    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
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<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR>10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>2008 Long-Term Incentive Plan (Incorporated herein by reference
to Exhibit&nbsp;10.1 of Form&nbsp;8-K, dated March&nbsp;27, 2008, and filed with
the Securities and Exchange Commission on April&nbsp;2, 2008)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR>10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>Form of Nonqualified Stock Option Agreement (Incorporated herein
by reference to Exhibit&nbsp;10.2 of Form 8-K, dated June&nbsp;12,
2008, and filed with the Securities and Exchange Commission on
June&nbsp;18, 2008)</TD>
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<P align="center" style="font-size: 10pt">&nbsp;

<P align="center" style="font-size: 10pt; display: none">3
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<P align="center" style="font-size: 10pt">SIGNATURES



<P align="justify" style="font-size: 10pt; text-indent: 4%">Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">PARALLEL PETROLEUM CORPORATION


<P align="justify" style="font-size: 10pt; margin-left: 46%; font-size: 10pt">By:<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Larry C. Oldham&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Larry C. Oldham, President<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and Chief Executive Officer<BR>


<P align="justify" style="font-size: 10pt">Dated: May&nbsp;27, 2009


<P align="center" style="font-size: 10pt">



<P align="center" style="font-size: 10pt">-4-

<P align="center" style="font-size: 10pt">&nbsp;

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<P align="center" style="font-size: 10pt">EXHIBIT INDEX


<DIV align="center">
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<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 10pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Exhibit No.</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Description</TD>
</TR>

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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR>10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>2008 Long-Term Incentive Plan (Incorporated herein by reference
to Exhibit&nbsp;10.1 of Form&nbsp;8-K, dated March&nbsp;27, 2008, and filed with
the Securities and Exchange Commission on April&nbsp;2, 2008)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><BR>10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR>Form of Nonqualified Stock Option Agreement (Incorporated herein
by reference to Exhibit&nbsp;10.2 of Form 8-K, dated June&nbsp;12,
2008, and filed with the Securities and Exchange Commission on
June&nbsp;18, 2008)</TD>
</TR>
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Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 20, 2009
PARALLEL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
0-13305
75-1971716
(State or other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer Identification No.)
1004 N. Big Spring, Suite 400, Midland, Texas
79701
(Address of Principal Executive Offices)
(Zip Code)
Registrant's telephone number, including area code:
(432) 684-3727
Not Applicable
(Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item 5.02.
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers;
Compensatory Arrangements of Certain Officers
Stock Option Grants to Executive Officers
At a meeting of the Compensation Committee (the "Committee") of the Board of Directors of Parallel Petroleum
Corporation (the "Company") held on May 20, 2009, the Committee approved and granted nonqualified stock options to each
of the Company's executive officers as follows:
Name of
Executive Officer
Number of Shares of Common
and Position
Stock Underlying Stock
with Company
Option
Exercise Price
Larry C. Oldham
Chief Executive Officer
104,000
$
2.00
Donald E. Tiffin
Chief Operating Officer
91,000
$
2.00
Steven D. Foster
Chief Financial Officer
52,000
$
2.00
John S. Rutherford
Vice President of Land and
Administration
35,750
$
2.00
Eric A. Bayley
Vice President of Engineering
35,750
$
2.00
The exercise price of the options is the grant date closing sales price of the Company's common stock on the
Nasdaq Global Select Market.
All of the options are for a term of ten years and vest in four equal annual installments beginning on May 20,
2009.
The form of nonqualified stock option agreement is incorporated herein by reference.
-2-
Item 9.01 Financial Statements and Exhibits
(d) Exhibits.
Exhibit No.
Description
10.1
2008 Long-Term Incentive Plan (Incorporated herein by reference
to Exhibit 10.1 of Form 8-K, dated March 27, 2008, and filed with
the Securities and Exchange Commission on April 2, 2008)
10.2
Form of Nonqualified Stock Option Agreement (Incorporated herein
by reference to Exhibit 10.2 of Form 8-K, dated June 12,
2008, and filed with the Securities and Exchange Commission on
June 18, 2008)
-3-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly authorized.
PARALLEL PETROLEUM CORPORATION
By:
/s/ Larry C. Oldham
Larry C. Oldham, President
and Chief Executive Officer
Dated: May 27, 2009
-4-
EXHIBIT INDEX
Exhibit No.
Description
10.1
2008 Long-Term Incentive Plan (Incorporated herein by reference
to Exhibit 10.1 of Form 8-K, dated March 27, 2008, and filed with
the Securities and Exchange Commission on April 2, 2008)
10.2
Form of Nonqualified Stock Option Agreement (Incorporated herein
by reference to Exhibit 10.2 of Form 8-K, dated June 12,
2008, and filed with the Securities and Exchange Commission on
June 18, 2008)