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.
Forward-Looking Statements
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.
Contact:
Rob Durbin, CEO
Telephone: 512-322-5740
http://www.imperialresourcesinc.com/pages/contact
SOURCE Imperial Resources, Inc.
