Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
OLDHAM LARRY
   2. Issuer Name and Ticker or Trading Symbol
PARALLEL PETROLEUM CORP [PLLL] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
CEO and President
(Last)
(First)
(Middle)
1004 N. BIG SPRING, SUITE 400		 3. Date of Earliest Transaction (Month/Day/Year)
10/22/2009
(Street)

MIDLAND, TX 79701		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
_X_ Form filed by One Reporting Person
___ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock, $.01 par value 10/22/2009   D   375,000 D $ 3.15 0 I By Spouse (1)
Common Stock, $.01 par value 10/22/2009   D   233,590 D $ 3.15 0 D  

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 4.97 10/22/2009   D     37,500 01/05/2002 06/20/2011 Common Stock 37,500 (2) 0 D  
Employee Stock Option (right to buy) $ 20.91 10/22/2009   D     80,000 06/12/2009 06/12/2018 Common Stock 80,000 (3) 0 D  
Employee Stock Option (right to buy) $ 2 10/22/2009   D     104,000 05/20/2010 05/20/2019 Common Stock 104,000 $ 1.15 (4) 0 D  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
OLDHAM LARRY
1004 N. BIG SPRING, SUITE 400
MIDLAND, TX 79701		   X     CEO and President  

Signatures

 /s/ Larry C. Oldham   10/23/2009
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Such shares were held by Oldham Properties, Ltd., a limited partnership. The general partner of Oldham Properties, Ltd. is Oldham, LLC, a limited liability company solely owned by the reporting person's spouse. The reporting person's spouse and two children are the sole limited partners. The reporting person disclaims beneficial ownership of the issuer's common stock that were held by his spouse through Oldham Properties, Ltd., except to the extent of his pecuniary interest therein.
(2) In connection with the transactions contemplated by an Agreement and Plan of Merger, dated as of September 15, 2009, by and among Parallel Petroleum Corporation, PLLL Acquisition Co. and PLLL Holdings, LLC, as amended by Amendment No. 1 to Agreement and Plan of Merger, dated as of October 13, 2009 (the "Merger"), this option was canceled in exchange for a lump sum cash payment equal to $10.00.
(3) In accordance with the terms of the Merger, this option was canceled without any cash or other consideration being paid to Mr. Oldham.
(4) In accordance with the terms of the Merger, this option, which provided for vesting in four equal annual installments beginning May 20, 2010, was canceled in exchange for a cash payment of $119,600, representing the difference between the exercise price of the option and the offer price of $3.15, multiplied by the aggregate number of shares into which the option was exercisable.

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