Blue Parrot Energy Inc.

Blue Parrot Energy Inc.

August 15, 2005 19:16 ET

Blue Parrot Energy Inc. Announces Project Updates

CALGARY, ALBERTA--(CCNMatthews - Aug. 15, 2005) - The following is a progress report for Blue Parrot Energy Inc. ("Blue Parrot") (TSX VENTURE:BPA) (BERLIN:BPX) with respect to its current projects. The Company is in an unprecedented position respecting the large number of projects in which it is participating. All of the projects are located in Alberta. The Company has an exit production target of 400 - 600 boed for this year.


A deep horizontal well at Pincher Creek commenced drilling on Saturday, August 6, 2005. Choice Resources Corp. is the operator of the well and Blue Parrot has farmed in for 5% before payout and a 2 1/2 % after payout interest. A 2 1/2 % interest will also be earned in 23 additional sections, four of which are development locations with 19 exploration sections. The well is expected to reach total measured depth in 60 to 70 days. Blue Parrot has the option to purchase a 2 1/2 % interest for $150,000 in an existing producing wellbore on the same section. As of today the well has already reached a depth of 1,900 meters.


The Company has accumulated a significant land base in this area with working interests from 40 to 50%. Two wells were drilled earlier this year at 15/12 and 1/29 and were completed as multi-zone wells. The first completion attempts in the Bakken zone of both wells produced water. The wells are currently being completed in the Colony zone with results expected in two to three weeks. Each well also has potential Viking production which will be tested after the operations in the Colony zone have been completed, and the wells produced to determine production levels before commingling. Facilities are located nearby. A further drilling program is currently being formulated and expected to be underway before year end.


An extensive maintenance program (cleaning out wells, flushing out cellars and replacing pumps) has just been completed in this area and production levels have been maintained.

An EUB permit for a pipeline construction to connect wells in the southern portion of the field has been applied for and pipeline construction will begin immediately on receipt of the permit. The pipeline will allow Blue Parrot to conserve and market an additional 300 to 400 mcf of gas daily.

A lease site for a new well at 2-34 is expected to be granted by the Four Nations this week and the drilling of this well will is expected to commence in late fall of this year.


The Company participated in the drilling of this well earlier this year with a 20% before payout farm-in interest and a 12 1/2% after payout interest. New operators have taken over this well and it is expected that production will commence shortly.


Blue Parrot has acquired a 50% working interest in two sections of land in this area. Blue Parrot is the operator for this shallow oil multi-well prospect. The initial drilling location has been picked and drilling is expected to start in the next three to four weeks.


Blue Parrot agreed to farm-in on a 25% interest to earn a 12 1/2 % after payout interest in this well which is expected to spud this week. The Company will also earn a 12 1/2 % interest in an adjoining four sections.


Two sections have been acquired with Blue Parrot participating for a 50% working interest. Blue Parrot is the operator for this shallow oil prospect. A drilling program is being developed for this area with an expected fall drill program.


Blue Parrot has recently acquired a 40% working interest in four sections of land and it is expected that development in this high interest area will take place this winter.


The Company has agreed to participate as to a 15% interest with a 9% working interest after payout. Blue Parrot will operate the well for this shallow oil prospect which covers two sections of land. This well has an anticipated spud date of four to five weeks.


Blue Parrot is currently negotiating to obtain a Farm-in interest in this multi-section prospect and it is expected development will take place this winter.


Blue Parrot owns a 10% working interest at Wallace which may be increased to 15% or more in this multi-well target, which is expected to be a winter drilling project.

As evidenced the Company is engaged in a very active program over the balance of 2005 and results should come on line shortly.

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

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

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