Imperial Resources, Inc. Independent Economic Summary Report on Key Oklahoma Resource Prospect
AUSTIN, Texas, July 13, 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 it has obtained an independent Proved Undeveloped Reserves ("PUDs") Evaluation ("Report") on its planned transformational Oklahoma Resource Prospect.
The Report, obtained from an independent registered petroleum engineer, dated June 30, 2011, considers a two well drilling program on 640 acres. The Company expects this two well program to typify expected results across the vast majority of the acreage it has acquired and expects to acquire over its wider Oklahoma Resource Prospect.
Across the two well program the report projects economically recoverable oil reserves broadly in line with the Company's own analysis. Gas reserves are independently assessed at a figure very considerably higher than the Company's prior expectation.
The Company notes that it expects the gas in the Prospect to be of a particularly high BTU content and could achieve prices of over $6.00 per Mcf, in line with gas currently produced nearby the Prospect.
The report uses conservative commodity prices ($80.00/barrel for oil and $4.50/Mcf for gas) relative to current prices. It indicates Imperial's targeted net reserves (subject to completion of leasing) and classified as 1P, P90 or Proved Undeveloped Reserves at the lowest end of the industry risk would have a PUD value at a NPV discount rate of 10% of approximately $9,241.00 per acre net to Imperial. The acquisition program has acquired approximately 1,090 acres to date and intends to acquire a total of 5,000 acres in this first phase, all of which should evaluate similar to the acreage in the referenced report.
The Oklahoma Prospect is one of two key projects identified as transformational for Imperial (the other being the Company's SWDF project).
Rob Durbin, CEO of Imperial, said, "It makes sense for the Company to acquire as much acreage as we can. The acquisition of these assets should help give some substantive mass to our shareholder's investment. We believe the value of this acreage is only going to go up in value for the foreseeable future."
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.
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.
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