AUSTIN, Texas, April 14, 2011 /PRNewswire/ -- Imperial Resources, Inc.(OTCBB: IPRC) today is pleased to announce that its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial") has completed surface preparations for re-entering at the Nunnelly #1 well.
Surface preparation work required at Nunnelly #1 has been completed successfully. The bend/kink in the near surface section of the casing has been removed, a replacement section was welded on and a new well head fitted. The drill pad and access road has been built for the arrival of the workover rig. All other surface equipment is either in place or is anticipated to arrive imminently. A contract with the drilling company and other associated contractors has been entered into. The Company is now awaiting the next available rig.
Whilst cutting the old casing and examining the threads it was revealed that the pipe is not vintage; the thread of the pipe being typical of more modern pipe used since the 1950's. The Company has drawn the conclusion that some or all of the original casing has been pulled and replaced.
On arrival of the workover rig, the Company intends to stretch the casing to set the slips on the wellhead and remove whatever is blocking the hole at circa 250 feet. If the obstruction is cleared further tests will be carried out and an attempt made to clear the hole to its currently assumed open depth of 5,816 feet ("TD"). The Company will run closed hole logs and a cement bond log to determine existing casing depths and perforations.
After verifying the casing and cement depths, the Company intends to cement squeeze any existing perforations and perform all tasks necessary to protect the ground water prior to drilling the well to its new depth.
Subject to reaching TD, additional drilling is planned to approximately 6,500 feet (targeting the deeper productive Caddo Limestone formation), at which point open hole logs will be run on the newly drilled section. If these are satisfactory, the newly drilled section is expected to be cased, cemented and perforated.
Cost considerations make deepening of the existing wellbore the Company's first option but the Company may well decide, as works progress, that the most economic course would be to drill a new well to access the potential reserves.
Since 1974 twenty-four wells have been completed and produced within a two mile radius of the Nunnelly lease.
The Company has received a third party reservoir analysis from an independent registered petroleum engineer broadly in line with the Company's internal estimates assigning to the well probable reserves (2P or P50) of 17,000 barrels of oil.
Imperial believes that the potential cashflow from Nunnelly #1, if successfully completed and put on production, will provide useful revenues as the Company progresses, in concert, its planned transformational Oklahoma Resource Play.
Rob Durbin, CEO of Imperial, said; "Re-entrys such as this can be very cost effective when things go right. The information we keep receiving on this one continues to be encouraging."
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. (OTCBB: 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 9, 2010. 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.
SOURCE Imperial Resources, Inc.