Blue Parrot Energy Inc.
TSX VENTURE : BPA

Blue Parrot Energy Inc.

October 15, 2007 19:32 ET

Blue Parrot Energy Provides Update on Corporate Activities

CALGARY, ALBERTA--(Marketwire - Oct. 15, 2007) -

(NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES OF AMERICA)

Blue Parrot Energy Inc. (TSX VENTURE:BPA) (the "Company") announces that further to its news release of October 5, 2007, the Company has entered into a formal Amended Forbearance Agreement with the National Bank of Canada, pursuant to which, among other things, the Company has been provided with an extension on payment obligations under its existing credit facility until December 31, 2007, subject to certain conditions and the attainment of certain milestones in relation to its previously announced strategic initiatives and restructuring matters.

The Company, with the assistance of the Steele Consulting Partnership, continues to review and evaluate strategic alternatives to maximize shareholder value in connection with its restructuring plans. In connection with the foregoing, the Company announces that it has engaged Ernst & Young LLP, Chartered Accountants to provide financial and auditing expertise and CB Securities to assist in the evaluation of divesture opportunities with respect to the Company's properties.

Blue Parrot Energy Inc. is an oil and natural gas exploration, development and production company based in Calgary, Alberta.

Advisory: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management.

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

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