Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

July 09, 2008 16:18 ET

Blue Parrot Energy Announces Second Quarter Results

CALGARY, ALBERTA--(Marketwire - July 9, 2008) -


Blue Parrot Energy Inc. (TSX VENTURE:BPA) (the "Company") announces results for the second quarter ended April 30, 2008.


Second Quarter Ended April 30, 2008 April 30, 2007

Gross revenue $ 928,843 $ 1,459,179
Net income (loss) (2,683,289) (462,308)
Net income (loss) per share
- basic and diluted (0.03) (0.01)

On October 1, 2007 the Company entered into an agreement with Michael A. Steele of Steele Consulting Partnership to review and evaluate strategic alternatives to maximize shareholder value in connection with its restructuring plans. The Company's future business plan focuses on optimizing the operation of its oil and gas properties. The ability of the Company to continue as a going concern is dependant upon the Company's ability to successfully complete its informal restructuring, obtain necessary financing, and achieve a profitable level of operations through future production. The Company is currently reviewing its strategic options including a possible merger in 2008.

The Company has incurred a net loss of $2,683,289 for the three months ended April 30, 2008 and $6,371,020 for the six months ended April 30, 2008. At April 30, 2008 the company had an accumulated deficit of $11,083,871. In addition, the Company has a working capital deficiency of $15,077,707 as at April 30, 2008. To address this deficiency, the Company undertook an informal restructuring of its payables as at October 1, 2007.

On a BOE basis, average daily production rates for the quarter ended April 30, 2008 was approximately 147 BOE/d compared to 306 BOE/d for the same period last year. Oil prices averaged $96.06/bbl for the quarter compared to $64.22/bbl for the same period last year. Natural gas prices averaged $9.25 per mcf for the second quarter compared to $7.99 per mcf for the same period of the prior year. The prices reflect the general increases experienced in the upstream sector of the oil industry.

Blue Parrot has reposted its fiscal 2007 yearend financial statements due to changes in the subsequent event notes to the financial statements. These discrepancies relate only to the interim financial statements and, as such, have no impact on the 2007 yearend consolidated financial statements. The restatements have no cash impact during the period.

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

Advisory: This news release contains statements about future events that are forward looking in nature and, as a result, are subject to certain risks and uncertainties such as changes in plans or the occurrence of unexpected events. Actual results may differ from the estimates provided by management. 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 6,000 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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