Imperial: Sidetrack Operations Underway at Green Tide SWDF

Imperial Resources announced that 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 maximize 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."


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