Terms of proposed dividend in specie

BLUEBIRD ENERGY PLC

(AIM: BBE)

Terms of interim dividend in specie of part of Bluebird's holding

in Wessex Exploration PLC

Bluebird Energy plc ("Bluebird" or "the Company") announces that, following the announcement made on 14 May 2012 in relation to the proposed interim dividend in specie of part of Bluebird's holding in Wessex Exploration PLC ("Wessex"), the Independent Directors of Bluebird have determined that the terms of the interim dividend in specie are:

1 Wessex Share for every 18 Bluebird Ordinary Shares

The above is equivalent to an interim dividend in specie of 27,688,689 Wessex Shares, representing approximately 42.8 per cent. of Bluebird's holding as at the date of this announcement.

In determining the terms of the dividend, the Committee has considered the Company's ongoing working capital requirements and the effect on those requirements of any tax liability (with reference to the market value of the Wessex Shares at the date of Distribution) that the Company may incur in making the Distribution.

The Distribution is conditional upon shareholder approval. Accordingly, a general meeting to approve the Distribution is being held this morning at 11 a.m. at the offices of Osborne Clarke at 2 Temple Back East, Temple Quay, Bristol BS1 6EG. A further announcement will be made following the General Meeting.

Expected timetable of principal events

All capitalised terms in this announcement are as defined in the Circular which is available from the Company's website, www.bluebirdenergy.net.