Ownership Submission
FORM 5
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
Form 3 Holdings Reported
Form 4 Transactions Reported
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL 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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1. Name and Address of Reporting Person *
BAYLEY ERIC A
 2. Issuer Name and Ticker or Trading Symbol
PARALLEL PETROLEUM CORP [PLLL] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
_____ Director _____ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
VP of Corporate Engineering
(Last)
(First)
(Middle)

1004 N BIG SPRING, C/O PARALLEL PETROLEUM		 3. Statement for Issuer's Fiscal Year Ended (Month/Day/Year)
02/14/2007
(Street)


MIDLAND, TX 79701		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Reporting
(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 at end of Issuer's Fiscal Year
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Amount (A) or (D) Price
Common Stock, $.01 par value             25,000 D  
Common Stock, $.01 par value             20,000 D  
Common Stock, $.01 par value             40,000 D  
Common Stock, $.01 par value             11,700 D  
Common Stock, $.01 par value             5,790 I By IRA
Common Stock, $.01 par value             1,000 I By SEP Plan

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly. Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. SEC 2270 (9-02)

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 at End of Issuer's Fiscal Year
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
(A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Employee Stock Option (right to buy) $ 4.53           07/17/1998 07/17/2007 Common Stock
25,000
  25,000
D
 
Employee Stock Option (right to buy) $ 3.6           08/04/1999 08/04/2008 Common Stock
25,000
  25,000
D
 
Employee Stock Option (right to buy) $ 4.97           06/20/2002 06/20/2011 Common Stock
50,000
  50,000
D
 
Stock Purchase Warrant (right to buy) $ 6     3(1)       (1)   (1) Common Stock
200
  200
D
 

Reporting Owners

Reporting Owner Name / Address Relationships
Director 10% Owner Officer Other
BAYLEY ERIC A
1004 N BIG SPRING
C/O PARALLEL PETROLEUM
MIDLAND, TX 79701		       VP of Corporate Engineering  

Signatures

Eric A. Bayley 02/14/2007
**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) The reporting person owned a warrant to purchase 200 shares of common stock on July 1, 2001, the date on which the reporting person became an officer of Parallel Petroleum Corporation. Such warrant is exercisable for a period of thirty days after a registration statement covering exercise of the warrants becomes effective under the Securities Act of 1933, as amended, which registration statement may be filed with the Securities and Exchange Commission at the discretion of Parallel Petroleum Corporation.

Note: File three copies of this Form, one of which must be manually signed. If space provided is insufficient, see Instruction 6 for procedure.

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