CERTIFICATE OF INCORPORATION

                                       OF

                         PARALLEL PETROLEUM CORPORATION

 

 

 

"FIRST: The name of the corporation is PARALLEL PETROLEUM CORPORATION.

 

SECOND: The address of its registered office in the State of Delaware is No. 100

West Tenth Street, in the City of Wilmington, County of New Castle. The name of

its registered agent at such address is The Corporation Trust Company.

 

THIRD: The nature of the business of the Corporation and the objects and

purposes and business thereof proposed to be transacted, promoted or carried on

are as follows:

 

         1. To transact any and all lawful business for which a corporation may

         be incorporated under the laws of the State of Delaware.

 

         2. To do everything necessary, proper, advisable or convenient for the

         accomplishment of the purposes hereinabove set forth and to do all

         things incidental thereto or connected therewith which are not

         prohibited by the laws of the State of Delaware, by other laws or by

         these Articles.

 

         It is the intention that the purposes, objects and powers specified by

the foregoing clauses shall not, by reference to or inference from the terms of

any other clause in this Certificate of Incorporation, but each purpose, object

or power stated in the foregoing clauses shall be regarded as an independent

purpose, object or power.

 

FOURTH: The total number of shares of all classes that the Corporation shall

have authority to issue is 140,000,000 of which 40,000,000 shall be Preferred

Shares, par value $.10 per share, and 100,000,000 shall be Common Shares, $.01

par value per share.

 

         The designations, preferences, limitations and relative rights of the

shares of each class that the Corporation shall have authority to issue are as

follows:

 

 

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1. Preferred Shares.

 

         The Corporation may divide and issue the Preferred Shares in series.

Preferred Shares of each series when issued shall be designated to distinguish

them from the shares of all other series. The Board of Directors is hereby

expressly vested with authority to divide the class of Preferred Shares into

series and to fix and determine the relative rights and preferences of the

shares of any such series so established to the full extent permitted by this

Certificate of Incorporation and the laws of the State of Delaware in respect of

the following:

 

                (a) The number of shares to constitute such series, and the

         distinctive designations thereof;

 

                (b) The rate and preference of dividends, if any, the time of

         payment of dividends, whether dividends are cumulative and the date

         from which any dividend shall accrue;

 

                (c) Whether shares may be redeemed and, if so, the redemption

         price and the terms and conditions of redemption;

 

                (d) The amount payable upon shares in event of involuntary

         liquidation;

 

                (e) The amount payable upon shares in event of voluntary

         liquidation;

 

                (f) Sinking fund or other provisions, if any, for the redemption

         or purchase of shares;

 

                (g) The terms and conditions on which shares may be converted,

         if the shares of any series are issued with the privilege of

         conversion;

 

                (h) Voting rights, if any; and

 

                (i) any other relative rights and preferences of shares of such

         series, including, without limitation, any restriction on any increase

         in the number of shares of any series theretofor authorized and nay

         limitation or restriction of rights or powers to which shares of any

         future series shall be subject.

 

 

                                      -2-

 

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         2. Common Shares.

 

                (a) The rights of holders of Common Shares to receive dividends

         or to share in the distribution of assets in the event of liquidation,

         dissolution or winding up of the affairs of the Corporation shall be

         subject to the preferences, limitations and relative rights of the

         Preferred Shares fixed in the resolution or resolutions which may be

         adopted from time to time by the Board of Directors of the Corporation

         providing for the issuance of one or more series of the Preferred

         Shares.

 

                (b) The holders of the Common Shares shall be entitled to vote

         for each Common Share held by them of record at the time for

         determining the holders thereof entitled to vote.

 

FIFTH:   The names and mailing addresses of the incorporators are:

 

 

                                Name                Address

                             ----------       ------------------

 

                           Frank S. Delay      500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

                           Larry C. Oldham     500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

SIXTH: The names and mailing addresses of the persons who are to serve as the

directors (until their successors are duly elected and qualified) are:

 

 

                                Name                Address

                             ----------       ------------------

 

                           Frank S. Delay      500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

 

 

                                      -3-

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                                Name                Address

                             ----------       ------------------

 

                           E. R. Duke          500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

                           Larry C. Oldham     500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

                           Charles R. Pannill  500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

                           Glenn A. Smith      500 Metro Building

                                               119 North Colorado

                                               Midland, Texas

                                               79701

 

SEVENTH: The corporation is to have perpetual existence.

 

EIGHTH: The Board of Directors shall have power to enact, alter, amend and

repeal such By-Laws not inconsistent with the laws of the State of Delaware and

this Certificate of Incorporation as it may deem best for the management of the

Corporation.

 

NINTH: Cumulative voting shall not be allowed in the election of directors.

 

TENTH: Shareholders shall not have a preemptive right to subscribe for, purchase

or acquire additional unissued or treasury shares of the Corporation or

securities convertible into shares or carrying share purchase warrants or

privileges as the same may be issued from time to time by the corporation.

 

ELEVENTH: Elections of directors need not be by written ballot unless the

by-laws of the corporation shall so provide.

 

         Meetings of stockholders may be held within or without the State of

Delaware, as the by-laws may provide. The books of the corporation may be kept

(subject to any provision contained in the statutes) outside the State of

Delaware at such place or places as may be designated from time to time by the

board of directors or in the by-laws of the corporation.

 

                                      -4-

 

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TWELFTH: Any action required by statute to be taken at any annual or special

meeting of stockholders, or any action which may be taken at any annual or

special meeting of stockholders, may be taken without a meeting, without prior

notice and without a vote, if a consent in writing, setting forth the action so

taken, shall be signed by the holders of all of the outstanding stock of the

Corporation.

 

THIRTEENTH: The corporation reserves the right to amend, alter, change or repeal

any provision contained in this Certificate of Incorporation, in the manner now

or hereafter prescribed by statue, and all rights conferred upon stockholders

herein are granted subject to this reservation.

 

         WE, THE UNDERSIGNED, being each of the incorporators hereinbefore

named, for the purpose of forming a corporation pursuant to the General

Corporation Law of the State of Delaware, do make this certificate, hereby

declaring and certifying that this is our act and deed and the facts herein

stated are true, and accordingly heave hereunto set our hands this 6th day of

June, 1984.

 

 

                                     /s/ Frank S. Delay

                                     --------------------------------

                                     FRANK S. DELAY

 

 

                                     /s/ Larry C. Oldham

                                     --------------------------------

                                     LARRY C. OLDHAM

 

                        

 

 

 

 

                              CERTIFICATE OF MERGER

                                     MERGING

                         PARALLEL PETROLEUM CORPORATION

                               A TEXAS CORPORATION

                                      INTO

                         PARALLEL PETROLEUM CORPORATION

                             A DELAWARE CORPORATION

 

               (Pursuant to Section 252 of the General Corporation

                          Law of the State of Delaware)

 

         1. The names of the constituent corporations and the states under the

laws of which they are respectively organized are:

 

                      Name of Corporation                      State

                  ------------------------------               -----

                  Parallel Petroleum Corporation              Texas

 

                  Parallel Petroleum Corporation              Delaware

 

         2. An Agreement of Merger has been approved, adopted, certified,

executed and acknowledged by each of the constituent corporations in accordance

with section 252(c) of the General Corporation Law of the State of Delaware.

 

         3. The name of the surviving corporation is Parallel Petroleum

Corporation, a Delaware corporation.

 

         4. The Certificate of Incorporation of Parallel Petroleum Corporation

shall be the Certificate of Incorporation of the surviving corporation.

 

         5. The executed Agreement of Merger is on file at the principal place

of business of Parallel Petroleum Corporation.

 

                         Parallel Petroleum Corporation

                               119 North Colorado

                                 Metro Building

                                    Suite 500

                              Midland, Texas 79701

 

         6. A copy of the Agreement of Merger will be furnished by Parallel

Petroleum Corporation, on request and without cost, to any stockholder of any

constituent corporation.

 

         7. The authorized capital stock of Parallel Petroleum Corporation,

Texas, is 120,000,000 shares.

 

 

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         IN WITNESS WHEREOF, said Parallel Petroleum Corporation, a Delaware

corporation, has caused its corporate seal to be affixed and this certificate to

be signed by Frank S. Delay, its President, and Larry C. Oldham, its Secretary,

this 17th day of December, A.D., 1984.

 

 

(Corporate Seal)                     By: /s/ Frank S. Delay

                                         -----------------------------

                                         Frank S. Delay, President