Blue Parrot Energy Inc.: President's Message to the Shareholders.

Energy Editors/Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--March 15, 2004

I am pleased to report that Blue Parrot Energy Inc. (TSX VENTURE:BPA) (formerly known as Epic Oil and Gas Ltd.) showed a profit for the fiscal year ending October 31, 2003 of $73,606 or $0.004 cents per share versus a loss of $303,901 for the previous fiscal year on a consolidated basis. The profit contributed to October 31, 2003 retained earnings of $416,996 on a consolidated basis.

Gross income is up nearly a half million dollars for the period reflecting a production increase during the year of 20 BOED from Blue Parrot's Bonnie Glen Cardium field. Future production should be considerably enhanced by the current and planned drilling program at Bonnie Glen.

Currently, Blue Parrot is in the midst of a 4-well drilling program. The 4 wells are being drilled from a pad and a new pipeline has been completed and is awaiting tie-in of these wells to transport the production to the Bonnie Glen Production Battery at 1-35-46-28W4. Conservative forecasting of the production from these new wells is estimated after flush production to add 50 BOD and 100 MCF of gas for each well. Blue Parrot also has plans for 3 additional drilling programs, each of approximately 4 wells.

The commitment of management to reduce the general and administrative expenses was illustrated by the fact that general and administrative expenses increased by only $50,000 for the year (on a consolidated basis), notwithstanding the inclusion of the substantial costs of the reverse takeover of Epic Oil and Gas Ltd. Also, the ongoing reduction of general and administrative expenses, which was announced earlier in the year and is estimated to be approximately $320,000 on an yearly basis, is only partly reflected in the numbers. The reduction in salaries and benefits for the partial year amounted to $230,000. Not yet evidenced are office rental reductions of approximately $40,000 per annum. The forthcoming year will reflect the full effect of management's efforts to reduce the general and administrative expenses.

Blue Parrot is party to an agreement yet to be concluded for the sale of its wholly owned U.S. subsidiary, Rival Resources, Inc., which owns assets in Whatcom County, Washington, U.S.A. Rival Resources, Inc. has 4 permits for the drilling of wells on its Whatcom County lands.

The forthcoming year promises to be exciting and a major forward moving year for Blue Parrot. Management will continue its diligence to increase shareholder value as well as continue to keep shareholders constantly aware of developments in a timely fashion.

William Elligson, President

MANAGEMENT'S DISCUSSION OF FINANCIAL POSITION AND VARIATIONS IN OPERATING RESULTS

The following is a summary of the variations in Blue Parrot's operating results for the twelve-month period ended October 31, 2003 compared to a year-end October 31, 2002.

PRODUCTION

Natural production decline from the existing wells in the Bonnie Glen field was overcome resulting with a year-end production increase from 135 BOED as of October 31, 2002 to 155 BOED as of October 31, 2003. The increase was due to commencement of production from the Cardium formation in the 6-17-46-27W4 well which was purchased in the spring of 2003.

REVENUE

Production revenue increased during the period by nearly half million dollars or close to 30% which is even more significant when considering the large increase in the value of the Canadian Dollar compared to the US Dollar which negatively affected gross income by approximately 15%.

Working capital has improved considerably during the period as a result of increase cash flow and the sale of the Redwater properties and without including bank debt, ended the year at a deficit of $160,574 compared to a year earlier deficit of $477,755.

Current Bank indebtedness at year-end is $1,989,000 under Blue Parrot's line of Credit of $2,000,000 with a review date of February 1st 2004.

Blue Parrot's working capital position is improved since corporate year-end as the result of financing in December 2003 of $350,000 new equity and 996,000 in new flow through funds.

GENERAL AND ADMINISTRATIVE EXPENSES

Blue Parrot reduced field operating expenses marginally, however general administrative expenses increased by approximately $50,000 over the period. This should be reviewed as an achievement considering the amount of consulting, legal, and accounting fees which were associated with the purchase of the shares of Epic Oil & Gas Ltd. and which were included in the financial statements for the year ended October 31, 2003.

The executive decision to reduce salaries and expenses is reflected in a partial year reduction of $230,000. Further reductions will be realized in the forthcoming year, as a full year of reduction will be evident. Additionally the forthcoming year will demonstrate a rental reduction of over $40,000 as Blue Parrot moved itself into a bare bones office space.

At the end of the period Blue Parrot only has three full time employees and one contract field operator.

TAXES

No taxes are payable due to tax pools totaling $6,191,683.

PROFIT

The Corporation was pleased to record a net profit for the period in the amount of $73,606 or $0.004 cents per share. This is a significant increase from a recorded loss a year earlier of $303,901. Total retained earnings increased to $416,996.

CAPITAL EXPENDITURES

During the period Capital Assets increased from $3,357,449 to $5,047,863.

RESERVES

Blue Parrot reserves are recorded herein as of December 31, 2003 as independently appraised by Citadel Engineering Ltd. in accordance with National Instrument 51-101 and COGEH definitions. Reserves and associated economics are summarized as follows on a constant dollar basis.

APPRAISED INTEREST (CONSTANT DOLLAR)
CASHFLOW IN THOUSANDS OF DOLLARS (CDN)

              W.I.O                                 DISCOUNTED
                  Gas   Net   Gas
           Oil  MMscf   Oil MMscf
          Mstb     (2) Mstb    (2) Undisc.    5%    10%    15%    20%
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Proved
Reducing   198  1,049   175   882   8,964  7,140  5,891  5,000  4,343
Probable
Producing  140    782   125   663   8,367  6,048  4,552  3,541  2,830
Proved Dev.
Non-
 Producing   -      -     -     -       -      -      -      -      -
Proved
Under-
 developed 762  3,031   672 2,504  30,836 22,345 17,076 13,573 11,116
Probable
Additional  (7)   800   620        19,279 11,934  7,922  5,548  4,047

ARTC (8)                              165    150    137    126    116

GRAND
 TOTAL   1,900  4,862 1,592 4,049  67,611 47,617 35,578 27,788 22,452
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William Elligson, President