Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

April 02, 2007 16:56 ET

Blue Parrot Announces Fiscal 2006 Financial Results and Project Updates

CALGARY, ALBERTA--(CCNMatthews - April 2, 2007) - Blue Parrot Energy Inc. (TSX VENTURE:BPA) today announced financial results for the first quarter ended January 31, 2007.


First Quarter Ended Jan 31, 2007 Jan 31, 2006
Gross revenue $ 416,756 $ 960,607
Net income (loss) (778,889) 85,872
Net income (loss) per share
- basic and diluted (0.020) 0.002

Revenues for the period are down by $407,444 from the previous period a year ago resulting from a number of wells being shut down for a short period for maintenance purposes as well as lower industry prices for oil and natural gas. On a BOE basis, average daily production rates for the quarter ended January 31, 2007 were 126 BOE/d compared to 147 BOE/d (a 15% decrease) for the same period last year. Natural gas prices averaged $9.26 per mcf for the first quarter compared to $15.47 per mcf (a 41% decrease) for the same period of the prior year. Oil prices were slightly lower at $370.20/m3 compared to $411.00/m3 for the first quarter in the prior year. This decrease in price reflects the general price decreases experienced in the upstream sector of the oil and gas industry this past year. There is a significant increase in income expected in coming quarters with production behind pipe being brought on to the market.

Blue Parrot exited the first quarter with 196 BOE/d to 200 BOE/d (an increase of 55%) and further production increases are expected in the second and third quarter.


Antelope - Work was completed on the pipeline near the middle of January 2007. All ten wells were tied-in, eight of which are on production. The two remaining wells contain small amounts of hydrogen sulfide and are expected to be turned on in the second quarter. Currently Blue Parrot's 50% working interest equates to 125 to 135 barrels of oil equivalent per day (BOPD). The two additional wells are expected to add between 95 and 110 BOPD. Blue Parrot is currently working on a strategy for future development for 2007.

Campbell - Blue Parrot increased its interest in this project to 47.5% before payout and a net 30% after payout. The Company tied-in their 15-33-54-25W4 well in the middle of January. Production is being brought slowly and currently is at 70 to 80 barrels of oil a day (12 to 14 m3/d) with 650 to 700 thousand cubic feet of gas a day (19 to20 103/m3/d). Development plans include shooting a new 3-D seismic survey over lands owned to the north and at least one new well drilled in the third quarter.

Bonnie Glen - A new pipeline has been added to reroute Bonnie Glen's gas to a new processing facility. This will help lower operating costs by at least 15%. Two horizontal wells are planned to been drilled in the second quarter and are well on the way to being licensed.

Taber- This is a new area of interest for Blue Parrot. Blue Parrot recently purchased a half section of land offsetting successful Manville oil production. Blue Parrot has plans to develop an associated gas cap which could add significant reserves and cash flow for minimal costs. It is expected to have the first well on stream in the third quarter of 2007.

Clear Hills - Blue Parrot has signed a farm-in agreement for a 25% working interest with Choice Resources in two wells; the first well being completed and tested in the second quarter of 2007. This is a winter access area so the second well will be drilled in the fourth quarter.

The Company continues to aggressively seek and enlarge the number of projects in which it is participating. All of the projects are located in Alberta. Current new production coming on line will bring daily production numbers to the 500-600 BOED levels.

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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