Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

April 03, 2006 14:11 ET

Blue Parrot Announces First Quarter Financial Results and Project Updates

CALGARY, ALBERTA--(CCNMatthews - April 3, 2006) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) (BERLIN:BPX) today announced financial results for the first quarter ended January 31, 2006.

The Company generated revenue of $0.96 million for the first quarter of 2006 versus $0.79 million for the same period last year. The Company showed a profit of $85,872 ($0.002 per share) versus a loss of $72,277 ($0.002 per share) last year and cash flow from operations of $282,194 ($0.008 per share) versus $36,517 ($0.001 per share) last year. Current bank indebtedness was $1.35 million at quarter-end payables have been significantly reduced to $1.10 million from $2.60 million for the same comparative periods. Consolidated expenses for the period saw a slight reduction. The tide is turning and management expects this trend to continue. Revenues are up and costs are down; this is what makes for success. Little more needs to be said other than the Company has an impressive array of new projects to kick off once road bans are lifted and heavy equipment can be moved to the various sites.

As soon as road bans are lifted, drilling programs will commence including 8 new wells at Antelope as well a new well at Virginia Hills. These wells are expected to positively impact production numbers. Other wells are planned for Campbell and Moranville as early as possible. All the projects discussed below have very good potential based on seismic information and these, coupled with the Campbell well coming on production this next quarter, provides for exciting times for the Company and its shareholders.

Project Updates

The Company continues to aggressively enlarge its unprecedented position respecting the number of projects in which it is participating. All of the projects are located in Alberta. The Company has an exit production target of 500 to 600 boe/d for the forthcoming year.

PINCHER CREEK: A deep horizontal well at Pincher Creek that was successfully drilled with Choice Resources Corp. as the operator is on production and Blue Parrot has a 5% before payout and 2.5% after payout of the well. Blue Parrot exercised its option to purchase a 2.5% interest for $75,000 in an existing producing well on the same section. It is expected that further development in this area will move forward during the coming year.

ANTELOPE EAST: The Company has accumulated a very significant land base in this area with a working interest of 50%. A program for the drilling of the first 8 new wells in this area has been completed and is ready to commence with the lifting of road bans in the area. The program has been designed based on 3D seismic.

BONNIE GLEN: An EUB permit for a pipeline construction to connect wells in the southern portion of the field was approved and pipeline construction was completed in late fall, but a number of technical maintenance problems delayed the successful production stream until well into the first quarter of 2006. A lease site for a new well at 2-34 still awaits approval by the Four Nations. The drilling of this well is expected in the new year.

CHIGWELL: The Company participated in the drilling of this well earlier this year with a 20% before payout farm-in interest and a 12.5% after payout interest. The operation of this property still is unsettled by the major operators.

CAMPBELL: Blue Parrot farmed-in with a 25% interest to earn 12.5% after payout interest in this well which produced a very successful well testing at 1.7 mmscf of gas and 144 barrels of oil. This well has been just recently designated a new pool wildcat well and should be placed on production in the near future. The Company also earned a 12.5% interest in an adjoining four sections and a second well is expected this year.

OLIVER: Two sections were acquired with Blue Parrot participating for a 50% working interest, and is being negotiated for a farm-out drilling program with a drilling program to commence as early as possible.

CADOTTE LAKE: Blue Parrot has a 40% working interest in four sections of land and it has farmed out this interest to a private company. The winter drilling program was ready to commence but the weather did not co-operate in this heavy-muskeg area and had to be postponed until next winter.

SUNKEN LAKE: The Company participated in a new well with a 30% farm-in interest with a 16.5% working interest after payout. The first two zones tested were not successful, however a third zone is expected to be tested this spring.

ACADIA: The Company has acquired an 80% working interest in a section of land with a shut-in gas well that it has successfully re-entered and has put on production at the rate of 130 to 140 mcf/d with pressures holding steady.

MORANVILLE: Blue Parrot has a 45% working interest in 2 sections of land in this area and a drilling program will commence after the current 3D seismic is completed and evaluated. We anticipate a summer drilling program for this potentially high impact area.

VIRGINIA HILLS: Blue Parrot has negotiated a 50% farm-in interest and 25 % after payout in 2 sections of land in Virginia Hills. Drilling will commence with the lifting of road bans in the area.

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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