Half Yearly Report

BLUEBIRD ENERGY PLC

(AIM: BBE)

Interim Results for the Half Year Ended 31 December 2011

Bluebird Energy plc ("Bluebird" or "the Company") is pleased to announce its Interim Results for the Half Year ended 31 December 2011.

Chairman's Overview

The interim period for Bluebird has been mixed. The company recorded a loss due to administrative expenses and project costs at Centurion, partially offset by a gain in the value of the holding in Wessex Exploration PLC. Changes in the company's focus following the disposal of its 50% interest in Centurion have subsequently been reflected in the board composition and corporate strategy.

The priority is now on consolidating shareholder value through a significant reduction in administrative costs while seeking to maximisethe potential value of the remaining US assets in an otherwise weak environment for gas exploration properties in the region.

The company will continue to evaluate new oil and gas exploration and development projects. However in parallel the board will also review the potential for returning any excess cash or financial assets directly to shareholders.

James Ede-Golightly

Non-Executive Chairman

Chief Executive's Report

Introduction

As shareholders will be aware, much has changed in the short period since Bluebird was admitted to trading on AIM in July 2011.

Development of the Centurion oil project was intended to be the main focus of the Company's efforts and resources but following the sale of a net 30% interest in the project by the Operator, Running Foxes Petroleum Inc., Bluebird commenced a strategic and operational review of its US assets in August 2011.

The outcome of this US asset review led to the sale of Bluebird's entire 50% interest in Centurion for $3.1 million in cash approved by shareholders during October 2011 and a refocusing of efforts around those assets where Bluebird has, or intends to have, a controlling interest.

As a result, Solitaire, a project in which Bluebird has a 100% interest and holds the rights as Operator, is now the operational focus of activity in the US. The Marcellus and Revloc acreages are up for sale and the decision not to continue in respect of the Company's 50% interest in Big Sky was announced on 3 November 2011.

Outside the US, project evaluation activity includes the Republic of Ireland where an out of round oil & gas application in respect of acreage in the Dublin Basin was lodged in May 2011 and, once opened, may include involvement in the forthcoming 14th Landward Licensing Round in the UK.

Subsequent to the half year, we have signed an Ownership Termination and Release Agreement relating to our effective 46% shareholding in Altawind Energy Inc., a non-core start-up US wind energy activity. This means that while we will no longer have a shareholder interest we will also not be responsible for any past or future liabilities relating to this non-core activity.

Working Capital

Bluebird's overall cash balance increased from $0.605 million at the end of June 2011 to $2.58 million at the end of December 2011 having raised $3.6 million by way of shares issued and $3.1 million in disposal proceeds.

Total administrative expenses in H1 2012 were $2.055 million of which $1.2 million is considered to be non-recurring or discontinued in nature.

Approximately half of the total administrative expenses related to salaries, pension and social security costs for the directors of group companies, together with travel and related expenses. This was higher than budget due to severance costs. In the second half board costs will decline significantly due to the change in board composition alongside a reduction in non-executive fee levels which took effect from March 2012.

The balance of the administrative costs are substantially comprised of various professional service expenses (primarily legal fees and printing/design work) together with discontinued activities and the Revloc impairment charge as disclosed in note 2. All service providers are now being reviewed to ensure the company gets value for money while retaining core functionality. For example, whilst management accounts will continue to be prepared monthly, it is the Company's intention to move from monthly to quarterly balance sheet consolidations to eliminate unnecessary accountancy expense.

While the board expects to realize a significant reduction in administration costs in the second half as non-recurring items such as severance costs drop out, the full benefit of costs savings will not be in place until the end of the financial year. As a result we anticipate further declines in available cash by the year end in the absence of asset disposals.

US Projects update

Solitaire

The primary target for the Solitaire project, located in Kit Carson County, Colorado, is gas in the Niobrara formation on the Eastern edge of the Denver Basin. However, there is also believed to be the potential to develop the Niobrara as a shale gas and liquids rich shale play. Recent new oil discoveries include the Hereford field and the Silo field northeast of the historic Wattenberg field. Approximately 40,000 acres of oil and gas leases are held outright by the Company as well as Operator rights. The Solitaire leasehold interests held by Bluebird are due for renewal between May 2013 and March 2019.

The acquisition and interpretation of 3-D seismic to identify structural highs and fracture systems is critical in understanding the potential of the acreage. Bluebird is currently marketing Solitaire to potential farm-in partners with a view to commencing seismic work later in the year.

Marcellus

Bluebird holds an approximate 87% interest in approximately 4,000 net asset acres of oil and gas rights in the Marcellus fairway in central Pennsylvania centred on Cambria County. There has been sporadic activity in the past in Cambria County and adjacent counties which are considered to be on the edge of the core Marcellus formation.

As it stands, the Bluebird acreage held is only sufficient to support a modest development project but it may be of interest to other operators in the area. With this in mind, a decision was made to appoint an agent to sell all or part of the interests in Marcellus. The Marcellus leasehold interests are due for renewal between April 2013 and January 2015.

Revloc

A decision was taken during Q3 2011 to release three of the largest Revloc project leases, thereby reducing annual lease costs by $120,000. The acreage of the project is now approximately 5,000 net asset acres for coal or coal bed methane, of which the Company has a 50% interest. Subsequent to this, the Partners agreed to plug the existing five non-producing wells, which should be completed by the end of Q2 2012. The remaining Revloc acreage has been put up for sale and placed in the hands of our Marcellus representative.

In the absence of a sale, the leasehold interests that are due for renewal between January 2015 and August 2016 are likely to be allowed to lapse.

This project is now fully impaired with $268,128 being written down in these accounts.

Investments

Wessex Exploration PLC ("Wessex")

Bluebird holds a 9% shareholding in AIM quoted Wessex (64,743,934 ordinary shares) which had a market capitalisation of £48.2 million as at 14 March 2012, being the latest practicable date before the publication of these Interim Results. This 9% figure includes a further investment by Bluebird of £0.534 million ($1.0m; 10,694,000 ordinary shares) made in December 2011 via Bluebird's participation in the successful £12 million Wessex placing at 5 pence per share.

The reason for the placing was to provide Wessex with the funds to participate fully in the anticipated Guyane forward work programme following the company-changing Zaedyus oil discovery in September 2011. Wessex holds an effective net 1.25% working interest in the Guyane Maritime Exclusive Exploration Licence alongside Tullow (27.5%), Shell (45%), Total (25%) and Northern Petroleum (1.25%). Wessex also has interests in projects in Juan de Nova located within the Mozambique Channel, Southern UK and the Western Sahara.

Cimarron Properties

Bluebird continues to hold a 5.3% royalty interest in Cimarron Properties operated by Madison Capital Investment LLC. This royalty interest provides a small income stream to the Company.

Board Changes

On 6 December 2011, executive chairman, and one of the original founders of Bluebird, David Bramhill did not offer himself for re-election as a director at the Annual General Meeting. The directors thank him for his contribution to the Company and wish him well in his other endeavours.

On 2 March 2012, James Ede-Golightly was appointed non-executive chairman. He is a non-executive director of ORA Capital Partners Ltd ("ORA"), Chairman of East Balkan Properties and holds several other non-executive directorships. James has an indirect interest in the Company through ORA (Guernsey) Limited which owns 128,582,000 shares in Bluebird (representing 25.8% of its share capital).

The Future

Our operational objectives in the short term remain that of reducing cash burn, building on cash resources via asset sales and to complete the de-risking of the business. We have also commenced the marketing of our Solitaire project to potential farm-in partners.

In terms of strategic direction, Bluebird will seek to maximize the value of existing assets and continue to evaluate new oil and gas exploration and development projects. However in parallel the board will also review the potential for returning any excess cash or financial assets directly to shareholders. Currently, Bluebird cash resources and near liquid investments stand at approximately £5.8 million (1.17 pence per share).

Andrew Yeo

Chief Executive Officer

15 March 2012

Contacts

Bluebird Energy plc www.bluebirdenergy.net

Andrew Yeo - Chief Executive +44 (0) 117 917 5218

WH Ireland Limited www.wh-ireland.co.uk

John Wakefield +44 (0) 117 945 3470

Yellow Jersey PR Limited www.yellowjerseypr.com

Dominic Barretto +44 (0) 776 853 7739

CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEET

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

NOTES TO THE COMBINED UNAUDITED HISTORIC FINANCIAL INFORMATION

1. Accounting policies

Basis of preparation

These condensed Half Yearly financial statements are for the six month period ended 31 December 2011.

The financial information for the 6 months ended 31 December 2011 and 31 December 2010 is unaudited.

IFRS is subject to amendment and interpretation by the International Accounting Standards Board ("IASB") and the IFRS Interpretations Committee and there is an ongoing process of review and endorsement by the European Commission.

The financial information has been prepared on the basis of IFRS that the Directors expect to be applicable as at 30 June 2012, with the exception of IAS 34 Interim Financial Reporting.

Financial information contained in this document does not comprise the Group's statutory financial statements as defined in section 434 of the Companies Act 2006.

The statutory financial statements for the year ended 30 June 2011 have been delivered to the Registrar of Companies. The auditors reported on these financial statements: their report was unqualified, did not contain a statement under section 498(2) or 498(3) of the Companies Act 2006, and did not include references to any matters to which the auditor drew attention by way of emphasis.

.

2. Exceptional administrative expenses

3. Loss per share attributable to the equity shareholders of the Company

The losses and weighted average number of ordinary shares used in the calculation of basic loss per share are as follows:

As at 31 December 2011, 30 June 2011 and 31 December 2010 the options in issue are not dilutive under IAS 33, Earnings per Share, because they would have the effect of decreasing the loss per share. As such there is no difference between the basic and dilutive loss per share at these dates.

4. Share Capital

5. Discontinued operations and disposal of business

On 7 October 2011 Bluebird completed the disposal of its interest in the Centurion project, receiving in consideration US$3,100,000.

Analysis of profit for the period from discontinued operations

Details of assets disposed

6. Related Parties

Jayne Bramhill, the spouse of David Bramhill, provides ICT management services to the Company and is currently paid an annual salary of £12,000. In the period under review, she received a salary of £6,000 compared to £1,000 in the first half of 2010 and for the full year to June 2011 she received £7,000.

Brian Marshall, a non-executive director of Bluebird, provides accountancy management and company secretarial services to Bluebird as a consultant through Brian Marshall Accountancy Services ("BMAS") and registered office premises via Berkeley Hall Marshall Limited ("BHM") where he is a director. BMAS is currently paid £25,000 per annum for accountancy and company secretarial services and BHM receives £3,000 per annum for premises. In the period under review, BMAS received £12,500 compared to £5,000 in the first half of 2010 and for the full year to June 2011 received £14,166. BHM received £1,167 compared to £1,000 in the first half of 2010 and for the full year to June 2011 received £2,000.

The directors, having consulted the Company's nominated adviser, confirm their opinion that these arrangements, each of which are with related parties, are fair and reasonable insofar as the interests of shareholders are concerned.

7. Copies of the Interim Report

A copy of this Interim Report is now available on the Company's website at www.bluebirdenergy.net