Imperial Resources, Inc.; Oklahoma Test Well Update
AUSTIN, Texas, Oct. 17, 2012 /PRNewswire/ -- Imperial Resources, Inc. (OTCQB: IPRC) and its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial") is pleased to announce an update on the production from a well in which Imperial owns a nominal interest ("Test Well") and is producing from the same formation targeted in the Company's Area of Mutual Interest ("AMI") in Oklahoma.
The Company has recently updated its reserve analysis for the Test Well based on the history of the well since production began. The Test Well came onto production in November 2011 and achieved flow rates in excess of 360 barrels of oil and 850 McF of gas per day. After predicted initial production declines the well has continued to produce in line with expectations with cumulative production through July 31, 2012 of 42,539 barrels of oil and 152,586 McF of gas. Based on that historical production the Company is able to establish a better idea as to the ultimate recovery of the well. The results of this analysis indicates that the Test Well will have an ultimate recovery of 182,213 barrels of oil and over 2 billion cubic feet of gas with a productive life of approximately 25 additional years. To be conservative, the analysis was performed using July prices assuming a cost of $85.69 per barrel of oil and $3.67 an McF for gas over the life of the well, with no escalation. This means that if the prices rise above those numbers the productive life of the well will be extended.
In parallel work has been ongoing with a local geologist to identify prime spots within the Oklahoma AMI. Subject to funding, the Company intends to commence a leasing program to purchase an initial 5,000 acres with the aim of commencing a drilling program. The geology confirms that the AMI displays similar characteristics to the geology of the land where the Test Well is located and the Company believes that there is enormous potential to replicate the results of the Test Well over a large areal extent.
The Oklahoma resource play and Green Tide Water Disposal are two key projects identified as transformational for Imperial.
About Imperial Resources, Inc.
Imperial Resources, Inc., through its wholly owned subsidiary, Imperial Oil & Gas, Inc. has a highly focused, risk-averse strategy of building a substantial portfolio of oil and gas assets through its access to niche, low risk oil and gas opportunities in the onshore U.S. Imperial aims to exploit projects which can deliver cash flows normally associated with higher risk projects but without exposure to high risk failure rates.
To find out more about Imperial Resources, Inc. (OTCQB: IPRC), visit our website at www.imperialresourcesinc.com. Details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's EDGAR database.
Statements in this news release that are not statements of historical fact are forward-looking statements, which are subject to certain risks and uncertainties. Forward-looking statements can often be identified by words such as "expects," "intends," "plans," "may," "could," "should," "anticipates", "assumes", "likely," "believes" and words of similar import. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those expressed or implied by forward-looking statements due to a variety of factors that may or may not be foreseeable or within the reasonable control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission, including without limitation under the caption "Risk Factors" in the Company's Annual Report on Form 10-K filed on July 16, 2012. Except as otherwise required by law, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.
Rob Durbin, CEO
SOURCE Imperial Resources, Inc.