Final Results

BLUEBIRD ENERGY PLC

(AIM: BBE)

Full Results for the Year Ended 30 June 2011

Bluebird Energy plc ("Bluebird" or "the Company") is pleased to announce its full results for the year ended 30 June 2011.

Chairman's Statement

Introduction

There has been a significant change in the corporate strategy of Bluebird going forward which in the view of the directors is in the best interest of shareholders and the Company as a whole.

Shareholders will be aware of the disposal in October 2011 of our entire interest in the Centurion project for US$3.1 million gross paid in cash on completion.

The decision to dispose of this asset followed an appraisal by the Board of the US interests, held by Bluebird. The result of this appraisal concluded that the ongoing focus in the US should be on those assets where the Company has, or intends to have, a controlling interest.

Accordingly, the future operational focus of the Company in the US will be on Solitaire in which we hold a 100% interest. In addition, UK and European on-shore projects will play a major part in the future of your Company.

As a result of the sale of the Centurion interest there will be significant annualised cost savings. In addition, the funds received from the disposal have bolstered the cash holdings of Bluebird.

Current Operations

The Solitaire project comprises approximately 42,700 gross acres and is located in Kit Carson County, Colorado, on the eastern edge of the Denver Basin. The primary target is shallow, low pressure biogenic gas in the chalks of the Cretaceous Niobrara formation. There is also believed to be the potential to develop the Niobrara as a shale gas and possibly a liquids play.

Within the Niobrara formation there are alternating layers of chalk and organic rich shales. The primary productive chalk reservoir in the area is the Smokey Hill Member of the Niobrara which will be the subject of evaluation by Bluebird.

The Niobrara shale formation throughout the Denver Basin has become an active target for a number of major companies over the past two years. Leasing activity has increased significantly with prices reflecting the demand for quality land positions.

The directors believe that key to exploration of this project will be the initial acquisition and interpretation of 3-D seismic to identify structural highs and fracture systems which are important pathways in many other shale plays in the US. Secondary targets on the Solitaire group of leases include deeper Pennsylvanian carbonates and shales which have been shown to be productive south eastward through Colorado, Kansas and Oklahoma.

The Solitaire leasehold interests held by Bluebird are due for renewal between May 2013 and March 2019.

Further to the disposal of Centurion, Bluebird has taken control of the Solitaire project and it is the intention to seek, in an acceptable timeframe, partners to assist in project evaluation.

The Marcellus Shale project, located in Cambria County, Pennsylvania covers approximately 4,719 gross acres of which the Company holds a 86.96% interest. This project has evolved and expanded from the Revloc project where Devonian Marcellus shales were intersected during drilling for Coal Bed Methane.

Following the appraisal of US interests, the decision to sell all or part of our interest in the Marcellus and Revloc has been made and agents have been appointed to execute this.

A decision not to continue in respect of the Company's interest in Big Sky has been made and as a result the project has been impaired.

Outside the US the directors are evaluating a number of opportunities and proposals offered to Bluebird. One such opportunity is currently being pursued in the Republic of Ireland, where in May 2011 the Company lodged an "out of round" oil and gas option licence in respect of acreage in the Dublin Basin with the Petroleum Affairs division of the Department of Communications, Energy and Natural Resources. Following the application, the directors have conducted desk top and field reviews and are preparing an initial assessment of available data within the Dublin Basin. In addition, the Company is assessing various opportunities on-shore UK.

Investments

Wessex Exploration PLC ("Wessex")

In October 2009, Bluebird (then known as Osceola Hydrocarbons Limited) disposed of its non US assets to Wessex for a consideration of 54,049,934 shares equating to a current holding of 11.28% in that company. Wessex is now listed on the AIM of the London Stock Exchange, with at the time of writing, a market capitalisation of approximately £25 million.

Wessex is a hydrocarbon exploration company with projects offshore Guyane, Juan de Nova located within the Mozambique Channel, Southern United Kingdom and Western Sahara.

On 9 September 2011 Wessex announced that Tullow Oil plc, the operator, had issued an RNS stating that the Zaedyus exploration well, offshore Guyane, has made an oil discovery having encountered 72 metres of net oil pay in two turbidite fans. Results of drilling, wireline logs and samples of reservoir fluids show that the well has encountered good quality reservoir sands on prognosis.

The objective of the Zaedyus well was to test whether the Jubilee play, successfully established in West Africa, was mirrored on the other side of the Atlantic. This discovery opens a new hydrocarbon basin within which several neighbouring prospects have been mapped. This result also reduces the exploration risk in respect of the Guyane prospect. An appraisal programme and extensive follow up exploration are now being considered.

Cimarron Properties

Bluebird holds a 5.3% royalty interest in Cimarron Properties operated by Madison Capital Investment LLC. The rate of return of this investment since 2008 has ranged from 5% to 19%. This interest provides a small income to the Company.

Corporate

Several important corporate events took place during the financial year.

In February 2011 several resolutions were passed which included the change of name from Osceola Hydrocarbons Limited to Bluebird Energy Limited allowing the Company to proceed with the re-registration as a public company.

In addition, via an Open Offer and Placing concluded in February 2011 the Company raised £1.5 million before expenses. This was the Company's first fund raising since October 2008.

In July 2011, Bluebird obtained admission to the AIM market of the London Stock Exchange, accompanied by an institutional placing raising £2 million before expenses and a further amount of approximately £0.2 million by means of an Open Offer.

The board of directors of Bluebird has also been restructured to provide an enhanced level of Corporate Governance as is good practice for an AIM listed company. Andrew Yeo, Fred Dekker and Brian Marshall were all appointed during the year.

WH Ireland were also appointed as Nominated Advisers and broker to the Company and we thank them for their efforts in bringing Bluebird to AIM during very difficult market conditions.

The Future

Bluebird, like many other small cap companies, has felt the strain of the volatile conditions of the current markets.

Your Company is well funded for the future and the disposal of some of our US assets has and will continue to have a significant and positive effect on the cash position of the Company.

I am confident that value can be added during the new financial year to Bluebird following a period of significant change.

David Bramhill

Chairman

2 November 2011

Consolidated Income Statement

for the year ended 30 June 2011

Consolidated Balance Sheet

as at 30 June 2011

Consolidated Statement of Changes in Equity

for the year ended 30 June 2011

On 4 February 2011 a capital reduction took place whereby the Share Premium reserve was transferred to the Retained Earnings reserve in order to cancel the retained losses on conversion of the Company's status to a plc.

Consolidated Cash Flow Statement

for the year ended 30 June 2011

Notes to the Financial Statements

1. Basis of Preparation

This announcement has been prepared in accordance with International Financial Reporting Standards ("IFRS") but in itself does not contain sufficient information to comply with IFRS. Details of the accounting policies are set out in the annual report for the year ended 30 June 2011.

2. Loss per Share

Basic loss per share is calculated by dividing the earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the year.

Given the Group's reported loss for the year share options are not taken into account when determining the weighted average number of ordinary shares in issue during the year and therefore the basic and diluted earnings per share are the same.

3. Cash Flow from Operating Activities

4. Publication of Non-Statutory Accounts

The financial information set out in this announcement does not comprise the Group's statutory accounts for the years ended 30 June 2011 or 30 June 2010.

The financial information has been extracted from the statutory accounts of the Company for the years ended 30 June 2011 and 30 June 2010. The auditors' opinion on those accounts was unmodified and did not contain a statement under section 498 (2) or section 498 (3) Companies Act 2006 and did not include references to any matters to which the auditor drew attention by the way of emphasis.

The statutory accounts for the year ended 30 June 2010 have been delivered to the Registrar of Companies, whereas those for the year ended 30 June will be delivered to the Registrar of Companies following the Company's Annual General Meeting.

5. Annual Report and Annual General Meeting

The Annual Report will be available from the Company's website www.bluebirdenergy.net from 3 November 2011 and will be posted to shareholders on or around 10 November 2011. The Annual Report contains notice of the Annual General Meeting of the Company which will be held at 2.00 p.m. on 6 December 2011 at the offices of Osborne Clarke, 2 Temple Back East, Temple Quay, Bristol BS1 6EG.