Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

October 01, 2007 18:05 ET

Blue Parrot Announces Third Quarter Financial Results and Project Updates

CALGARY, ALBERTA--(Marketwire - Oct. 1, 2007) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) today announced financial results for the third quarter ended July 31, 2007.


Third Quarter Ended: July 31, 2007 July 31, 2006
Gross revenue $976,237 $755,268
Net income (loss) (192,494) (74,651)
per share - diluted ($0.003) ($0.000)

The period ending July 31, 2007 saw revenues increase approximately $645,000 over the same period last year mainly due to increased oil prices and the extra production from Campbell. Unfortunately the Campbell well had to be shut-in in June to obtain a GPP approval from the EUB which is expected, and then production can resume without further costs. This shut-in resulted in a production reduction to 220 BOED. The company has a 47.5% working interest before payout and a 30% working interest after payout in this well with potential for further drilling and a re-entry well on the property.

Work is being completed on 6 of the existing 11 producing wells at Antelope to allow co-mingling of upper gas zones. This is expected to increase production from 30 to 50 BOED. Further development of the lands at Antelope is expected in later quarters which will improve current production rates.

The company re-entered a well in the Taber area which tested consistently in the 2 MMCF/D range. Further work must be done in the area before this is placed on production. It is expected that this will occur early in 2008.

Taber and Campbell account for about 200 BOED behind pipe.

Bonnie Glen wells require some maintenance following a production reduction and work is currently in progress to replace several pumps in ailing wells which will result in a return to earlier production levels. A new pipeline to redirect our gas to another production facility is in place ready for utilization when the present Esso facility is shut down.

The period ending July 31, 2007 saw a net loss of $192,494 added to an accumulated balance sheet loss of $3,234,962. This loss can be attributed to an increase in direct costs including finance fees and flow-thru interest as well as current low gas prices.

Blue Parrot is continually adding to their play inventory and looks forward to an exciting year of exploration and development. Currently two new wells which will be operated by the Company are being drilled at Unity, Sask. Drilling should be completed by October 15, 2007. These wells are being drilled on a farm-in basis 100% BPO and 60% APO. Both candidates have multi-zone potential.

The Company has developed tax losses of $3.2 million on the balance sheet plus tax pools of approximately $12 million for future exploration drilling and development.

The priorities of the company are to increase production as economically as possible and utilize increased cash flow to reduce debt and to fund flow-thru expenditures. The Company will also give consideration to a variety of avenues to gain the capital necessary to complete its obligations which will include the possibilities of debt financing, capital financing, the disposition of certain assets or a combination thereof as well as any other possibilities which are presented. The Company has a large flow-thru commitment for the calendar year and it is being addressed by management. As the Company moves forward further new challenges and milestones are expected as new areas are developed and production is brought on stream.

Forward Looking Statements:

Certain statements contained herein constitute forward-looking statements. The use of any of the words "anticipate", "continue", "estimate", "expect", "may", "will", "project", "should", "believe", and similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this report should not be unduly relied upon. These statements speak only as of the date of this presentation. The Corporation does not undertake any obligation to publicly update or revise any forward-looking statements.

Per barrel of oil equivalent ("BOE") amounts may be misleading, particularly if used in isolation. A BOE conversion ratio has been calculated using a conversion of 6000 cubic feet of natural gas to 1 barrel and is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

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