Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

May 24, 2006 13:11 ET

Blue Parrot Energy to Commence Drilling at Virginia Hills

CALGARY, ALBERTA--(CCNMatthews - May 24, 2006) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) (BERLIN:BPX) today announced that drilling is about to commence at Virginia Hills, Alberta. A rig has been secured and is being moved onto location. Blue Parrot has negotiated a 50% farm-in interest and 25% after payout interest in four sections of land. Blue Parrot is the operator of this well.

The Company also announced the grant, subject to regulatory approval, of incentive stock options for the purchase of a total of 620,000 common shares in its capital to directors, officers and employees of the Corporation. The options are exercisable at a price of $0.225 per share, and have an expiry date of May 8, 2011.

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

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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