AUSTIN, Texas, Aug. 16, 2011 /PRNewswire/ -- Imperial Resources, Inc. (OTCBB: IPRC) and its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial") is pleased to announce that, further to its announcement of August 11, 2011, the sidetrack operation to deepen the disposal well at the Company's Green Tide Salt Water Disposal Facility ("SWDF") is underway and on track.
Operations are progressing well and costs are generally as anticipated. A whipstock was set and a window milled in the casing at approximately 2,865 feet. The sidetrack was initiated as expected and the new well bore drilled ahead, turning to 3 degrees from vertical, so as to establish a clear separation from the existing hole.
The drilling program is designed to establish a horizontal separation of approximately 100 feet from the lower section of the redundant well bore after turning vertical. As of 18:30 hours on August 15, 2011 the well was at 3,552 feet drilling ahead toward the target formation at a rate of approximately 30 feet per hour with the aim of casing the bottom 1,000 feet of the well to at least 500 feet into the Ellenburger formation. The well is then expected to be drilled ahead by a large workover rig to ideally create about 2,000 feet of open hole exposure in the Ellenburger so as to maximise disposal capacity.
Subject to success, commercial disposal operations are expected to start immediately targeting full disposal capacity of 15,000 barrels per day as quickly as possible. At full capacity, the Company believes the Green Tide SWDF has the potential to generate significant cash flow at relatively low operating costs.
Tom Barr, Director of Imperial, commented: "I am delighted that Imperial's rigorous approach to the sidetrack has been vindicated and this phase of the well deepening operation appears to be successful. Once drilling is complete our aim is to deliver a best-in-class disposal business to service the strong demand in the immediate area."
The Green Tide SWDF
The Green Tide SWDF is conveniently located for the disposal of large volumes of salt water generated from essential fracture stimulation operations on Barnett Shale gas wells. There are approximately 6,000 such Barnett wells within 20 miles of the SWDF.
Imperial plans to reopen Green Tide to dispose of up to 15,000 barrels of salt water a day. The Company's acquisition and development of the low run-time Green Tide assets and disposal permit is expected to save in excess of $5,000,000, compared to a new build cost.
Green Tide is one of two key projects identified as transformational for Imperial (the other being the Company's Oklahoma project).
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 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.
Rob Durbin, CEO
SOURCE Imperial Resources, Inc.