Half Yearly Report

BLUEBIRD ENERGY PLC

(AIM: BBE)

Interim Results for the Six Months Ended 31 December 2012

Bluebird Energy plc ("Bluebird" or "the Company") is pleased to announce its Interim Results for the Half Year ended 31 December 2012.

CHAIRMAN'S STATEMENT

The rationalisation of Bluebird's US Oil and Gas asset base and operating cost structure is now substantially complete; however the cash proceeds from US asset base to date have been minimal, at $26,000. The board has decided to impair the carrying value of the Solitaire project in Colorado as a consequence of the impeding expiry of those leases: this has resulted in a loss of $1.58m which has been recognised as an exceptional administration expense.

Following this impairment, the balance sheet of Bluebird essentially comprises a 5.1% interest in Wessex Exploration PLC held as an asset available for sale (together with an associated tax liability on the capital gain) and a cash balance of $1.7m at 31st December 2012. As at 6 March 2013 these balances were as follows:

Outlook

While we will continue to review the options for realisation of value from the Wessex holding, the primary focus is now on the implementation of a new investment strategy for the company aimed at growing net asset value (NAV) per share through the realisation of opportunities across a broader range of sectors. It is the board's intention to convene a General Meeting at which permission will be sought from shareholders to change the company's investment strategy; a circular will be published shortly.

Board Changes

In September 2012 Bluebird announced that Andy Yeo and Frederik Dekker had resigned from the board as CEO and non-executive director respectively to focus on their other executive responsibilities. At the same time, we were pleased to welcome Gordon Hall to the Board as an independent non-executive director.

We have commenced recruitment of an investment team and anticipate making further hires in the near future.

US Portfolio

In the US, a number of steps were taken during the period to exit the Group's portfolio of interests in Oil and Gas assets and reduce operating costs. The Group relinquished its Denver office on expiry of the lease in November 2012 and completed the sale of its interest in Cimarron Royalties for $26,000. At the Relvoc project in Pennsylanvia, in which Bluebird holds a 50% non-operator interest, all seven wells have been plugged and abandoned. Since the end of the period the Group has exited its interest in the Revloc project, which was carried at nil value and there were no proceeds on exiting the JV.

Despite review work which supported the possibility of a Mississippian oil play within our Solitaire acreage in Colorado and our efforts to market the asset, there hasn't been any interest from potential buyers of this asset. While the Board has decided to write down the carrying value of Solitaire to nil given this lack of interest as well imminent expiry of the leases, we are continuing to explore options to exit this project.

Financial Results 

The losses during the interim period primarily reflect the write down of the Group's Solitaire interest in Colorado, which resulted in an exceptional administrative expense of $1.58m. Comprehensive income was negatively impacted by the decline in the carrying value of the company's interest in Wessex Exploration from 6.77p to 4.43p which resulted in a loss of $1.3m.

Administrative expenses of $956k (H1 2011: $1,787k) for the six month comprised $518k in relation to the accelerated recognition of share based remuneration and $74k relating to the loss on disposal of the Cimarron Royalties interest. The remaining $364k in administration costs relate to ongoing operating costs incurred during the six month period.

As a result of the efforts to reduce operational expenses, the cash outflow from operational activities was reduced to $380k (H1 2011: $2.42m) while a currency gain and proceeds from the sale of Cimmarron Royalties limited the decline in cash balances to $295k leaving cash and cash equivalents at the period end of $1.7m.

James Ede-Golightly

6 March 2013

Contacts

Bluebird Energy plc www.bluebirdenergy.net

James Ede-Golightly Chairman +44 (0) 117 917 5218

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

John Wakefield +44 (0) 117 945 3470

CONDENSED CONSOLIDATED INCOME STATEMENT

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

CONDENSED CONSOLIDATED BALANCE SHEET

The financial statements were approved by the Board of Director's on 6 March 2013 and were signed on its behalf by:

James Ede-Golightly

Chairman

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 2012.

The financial information for the six months ended 31 December 2012 and 31 December 2011 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 2013, 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 2012 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 2012, 30 June 2012 and 31 December 2011 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. Related Parties

Brian Marshall, a non- executive director of Bluebird provided accountancy and company secretarial service to the company as a consultant through Brian Marshall Accountancy Services ("BMAS") and registered office premises via Berkeley Hall Marshall Limited ("BHM") of which company he was a director until 22 October 2012. In the period under review BMAS received £12,500 (2011: £12,500) and BHM received £1,500 (2011: £1,167)

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

6. Copies of the Interim Report

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