Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

February 28, 2007 18:37 ET

Blue Parrot Announces Fiscal 2006 Financial Results and Project Updates

CALGARY, ALBERTA--(CCNMatthews - Feb. 28, 2007) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) today announced financial results for the year ended October 31, 2006.

Summary of Quarterly Results

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter
Oct 31, 2006 July 31, 2006 April 30, 2006 Jan 31, 2006

Gross revenue 560,210 755,268 633,883 960,607
Net income
(loss) (429,519) (74,651) (304,088) 85,872
Net income
(loss) (0.011) (0.0002) (0.0008) 0.002
per share
- basic and

Revenues for the period are down by $287,000 from the previous period a year ago resulting from a number of wells being shut down for a short period for maintenance purposes ands well lower industry prices for oil and gas. There is a significant increase in income expected in coming quarters with production behind pipe being brought on to the market at the end of the first quarter of next year.

Production for the current year was 126 BOED versus 140 BOED for the previous year representing a 10% decline due to natural decline and production interruptions.

Operating expenses were reduced by $228,613 which represents a 20% reduction. Maintenance costs for the year were reduced due to good field practices and the tie in of several wells through a pipeline. General and operating expenses have increased $242,722 due to an increase in bank charges of approximately $100,000 and an increase in financing charges of approximately $100,000.

Depletion, depreciation and amortization demonstrated an increase of approximately $1 million, resulting from a reduction in Proven Undeveloped Reserves and corresponding Production Depletion rate increases. As a result the Company had a Net Loss for the period of $917,784 in the year ending October 31, 2006 as compared to a Net Loss of $601,471 in the year earlier. On a positive note the Company increased its Capital Assets during the year by $9,419,587 with successful drilling expenditures.

The year ending October 31, 2006 produced an accumulated balance sheet loss in the amount of $2,191,749. The fruits of labor from the current year have not shown up on the balance sheet as yet.

The Antelope area has been our biggest success with the drilling and completion of eleven successful multi-zone gas wells. Tie-ins on the first 10 wells were completed in January 2007 and placed on production late in that month. Further development plans in this area will be announced as they occur. The Company has a 50% working interest in this area and a significant land base has been accumulated with 3D seismic. This new production when on stream in full will add approximately 400 to 500 BOED to production and have a huge impact on the Company's cash flow position with virtually no increase in our G&A expenses.

Campbell area's well, drilled over a year ago was also brought on production in January 2007 and the Company's 30% working interest in this well when on stream in full will add another 80 to 120 BOED. The Company receives 47.5% before payout. This well will also have a great impact on the Company's cash flow and we look forward to further development of the 3.5 sections of land with 3D seismic being shot on it this year.

The Virginia Hills well was another large expenditure program this past year and although the well was plagued with drilling problems and the target area missed, there were still two zones found to have economic value. This well is part of a 4-section parcel of land farmed in on and continuance has been applied for with EUB.

Bonnie Glen will move to the front early in 2007 with one horizontal well and possibly two depending on the success of the first.

Blue Parrot is continually examining new exploration and development projects and will announce full particulars as they develop. The criteria are that they provide good value to the Company and its shareholders.

The Company has developed tax losses of $2.1 Million on the balance sheet and tax pools in excess of $11 Million for exploration drilling and development. With large increases in our cash flows in the coming year, these will be utilized to our full advantage.

The Company has experienced no staff turnover and it has an accident free record.

The principal areas of operation going forward will be to advance the Company with new production, increasing its value while reducing debt.

By the close of 2007, production will have increased significantly, net debt will have been reduced and a much more favorable picture is expected to be reflected.

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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