AUSTIN, Texas, April 30, 2012 /PRNewswire/ -- Imperial Resources, Inc. (OTCBB: IPRC.OB,OTCQB: IPRC) and its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial") is pleased to announce that it is progressing its key Oklahoma resource play.
As announced in January 2012, the Company has entered into a new 144 square mile Area of Mutual Interest ("AMI") in Oklahoma with its prospect generator. Under the terms of the AMI agreement Imperial will retain a 90% working interest. In early 2012 the Company commenced working with a geologist who has extensive experience in the area to identify the most productive sections within the large AMI. Using that information, the Company will develop a leasing plan to accumulate as much productive acreage as possible within the AMI. Imperial believes that the resource play formation within the AMI provides substantial drilling opportunities and excellent potential for uplift in acreage prices, as demonstrated by Imperial's purchase and sale of nearby similar acreage in 2011/early 2012, for a profit of over 250% in just 10 months.
Imperial has a nominal interest in a test well targeting exactly the same formation The test well came onto production in November 2011 and has achieved flow rates in excess of 360 barrels of oil and 850 McF of gas per day. After predicted initial production declines, flow rates continue to be strong with daily production averaging in excess of 150 barrels of oil and 650 McF of gas per day (up to the latest production receipt for February, 2012). Imperial estimates that this well will "pay out" (cover all of its drilling and completion costs) in less than 1 year. This rapid pay out is at the very highest end of industry performance. With its decline curve flattening, Imperial believes that the test well has the potential to produce for many years to come after pay out and this excellent performance is very relevant as to what could be achieved in the resource play within the Company's new Oklahoma AMI.
The Oklahoma resource play is one of two key projects identified as transformational for Imperial (the other being the Company's SWDF project which is currently being rebuilt).
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.OB), 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 14, 2011. 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.