Blue Parrot Energy Inc. Sells Rival Resources, Inc. a Wholly Owned Subsidiary of Blue Parrot Energy Inc. its Coal Bed Methane Project in the Bellingham Basin.

Energy Editors/Business Editors

CALGARY, Alberta--(BUSINESS WIRE)--Dec. 4, 2003

Blue Parrot Energy Inc. (TSX.V:BPA) (Berlin:BPX) is pleased to report that it has entered into an agreement to sell its wholly owned subsidiary Rival Resources, Inc. to a corporation (NEWCO) being reorganized by Robert Klein, Business man, Vancouver, B.C.

The terms of the agreement state that Blue Parrot Energy Inc. will receive Two Million ($2,000,000.00) US Dollars (the purchase price) by way of issuance to Blue Parrot Energy Inc. of five million (5,000,000) fully paid and non-assessable Newco Shares to be in an American public corporation listed on the NASDAQ Stock Exchange, which shares shall be free and clear of all liens, restrictions, security interests, claims, charges or encumbrances whatsoever.

The agreement is conditional on other things and that Blue Parrot shall be satisfied, on or before Closing, that Newco is a valid corporation duly reorganized with such attributes that are satisfactory to Blue Parrot under the circumstances, in its sole and absolute discretion, and without limiting the generality of the foregoing Newco shall have, at Closing, a working capital of at least US$2,000,000.00 and or an unconditional agreement with a party and on terms, satisfactory to Blue Parrot, in its sole and absolute discretion, providing for the farm in by such party into the properties of Newco in at least the amount of US$2,000,000.00.

Upon Closing Blue Parrot shall own at least 33 1/3% of the issued and outstanding Newco shares provided that the working capital of Newco is US$2,000,000.00 and failing that Blue Parrot shall own at least 50% of the issued and outstanding Newco Shares and at such time no other party shall have any rights, option or agreement to acquire Newco Shares which would dilute Blue Parrots ownership of Newco Shares in any way.

Bill Elligson, President of Blue Parrot Energy said, "I am very excited about the latest developments with the company, as it gives us an opportunity to participate in this exciting Coal Bed Methane project with no risk and an asset by way of stock in the Newco to our shareholders."

Prior to Closing the Board of Directors of Blue Parrot must grant approval of the within transaction by way of a corporate resolution.

About Blue Parrot

Blue Parrot Energy Inc. (TSX-V: BPA) is an oil and natural gas exploration development company based in Calgary, Alberta, Canada. The company, is currently producing 155 BOE/D from its Bonnie Glen oil wells, located near Edmonton, Alberta.

Bill Elligson

President.

The TSX Venture has neither approved or disapproved this release.