Imperial Resources, Inc. Enters Into LOI for Development Funding of Key Salt Water Disposal Facility
AUSTIN, Texas, June 7, 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 entered into a non-binding Letter of Intent ("LOI") for the development funding of its recently acquired Salt Water Disposal Facility ("Facility") located in the heart of the Barnett Shale in Texas.
The LOI is intended to lead to a Loan Agreement ("Loan") with a provider for an unsecured loan of up to $1,200,000 to be drawn down as required to develop the Facility.
It is anticipated that subject to the Loan being in place the Company will immediately begin preparation work with a view to commencing deepening operations as soon as possible. Subject to drilling success the Company anticipates commercial disposal operations will begin at the Facility site by the end of the summer.
The Company is delighted to have progressed potential funding to this stage so quickly after completing the acquisition of the Facility, it being a key project intended to lead to early cashflow for the Company. Imperial is targeting completion of the Loan during June, 2011.
The LOI anticipates that the Loan will be applied to deepening the existing well bore to the Ellenberger Formation, servicing the existing amortization payments due on the Facility and marketing disposal services.
The Facility
The Facility 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 wells within 20 miles of the Facility.
It consists of a relatively new, completed surface plant on approximately 41 acres of freehold land well located by a State highway, and an existing shallow well bore. The Facility has an existing permit for the disposal of up to 15,000 barrels of salt water per day into the Ellenberger formation. The investment in the Facility by its original owner is estimated by the Company to be in excess of $5,000,000.
Imperial plans to deepen the well and reopen the Facility to dispose of up to 15,000 barrels of salt water a day.
The Facility is one of two key projects identified as transformational for Imperial (the other being the Company's Oklahoma project).
Tom Barr, Director of Imperial, said, "I am delighted that development loan funding is in prospect so rapidly after our 100% acquisition of this very attractive 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), 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 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.
Contact:
Rob Durbin, CEO
Telephone:
512 322-5740
http://www.imperialresourcesinc.com/pages/contact
SOURCE Imperial Resources, Inc.
Share this article