Blue Parrot Energy Inc.
TSX VENTURE : BPA

Blue Parrot Energy Inc.

December 13, 2006 16:35 ET

Blue Parrot Announces Completion of Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 13, 2006) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) ("Blue Parrot" or the "Corporation") announces that it has completed the second and final closing of the previously announced private placement financing. The total gross proceeds raised from this second closing of the financing were $588,649.80, resulting in the issuance of an additional 1,962,166 common shares of the Corporation issued on a flow-through basis ("Flow-Through Shares") at a price of $0.30 per Flow-Through Share. Research Capital Corporation ("Research") acted as agent in respect of this financing and Research was paid a cash commission and granted an agent's option which allows Research to acquire, upon exercise of such agent's option, that number of common shares of the Corporation ("Common Shares") equal to 5% of the total number of Flow-Through Shares sold pursuant to the private placement, at a price of $0.30 per Common Share, expiring 12 months after the Closing Date.

The Flow-Through Shares issued under the second closing are subject to a four month hold period, expiring on April 14, 2007. Blue Parrot now has outstanding 57,551,477 Common Shares.

Blue Parrot raised total gross proceeds of $5,621,119.80 under the private placement financing for which two closings occurred on each of November 10 and December 13. The gross proceeds from the sale of the Flow-Through Shares will be used to fund the Corporation's continued exploration and development programs.

The Flow-Through Shares have not and will not be registered under the U.S. Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of such Act.

Blue Parrot is an oil and natural gas exploration, development and production company based in Calgary, Alberta. Blue Parrot's shares trade on the TSX Venture Exchange under the symbol "BPA".

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

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