Imperial Updates Ops at SWDF Well

Imperial Resources and its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company", "Imperial") announced that its Green Tide Salt water Disposal Facility ("SWDF") well has successfully found one of the major lost circulation zones containing the high porosity strands targeted in the Ellenburger formation, ideal for the planned disposal volumes of water and the well is now at the final total depth. There was a significant drop in the drill bit into a porous strand as the zone was intersected.

The rig then circulated in the hole to lighten the drilling mud to balance the low relative pressure of the Ellenburger formation (which makes it so ideal for disposal operations) allowing the release of the bit, which has now been pulled out of the completed hole and the rig has now been released.

A workover rig will now be used to insert the production tubing and packer. Additionally, all high pressure pipes which where severed to perform the drilling operation will be re-attached to complete the disposal circuit. The facilities are currently being brought up to speed with a check and update of some of the electronics and actuators.

The Company is delighted that drilling operations are complete and as soon as the production tubing and packer are in place will seek from the Railroad Commission a pressure test which will be the last threshold for the well prior to disposal operations. The immediate focus will be to bring the SWDF back into commercial operations as quickly as possible.

The Company is very confident that the SWDF location, in conjunction with the ease of access (directly off a State Highway) will attract substantial business rapidly and marketing efforts will now be launched to attract the maximum disposal rate the facility can handle. The facility is permitted to accept 15,000 barrels per day. The facility is also set up to separate the oil contained in solution within the disposal water prior to disposal. This recovery could equate to 1/4% to 1/2% in the disposal water. This could amount to over 40 barrels of oil per day at capacity, generating considerable additional revenues.

Tom Barr, Director of Imperial, said, "The zone we have hit more than meets our criteria for disposal at the full 15,000 barrel permitted daily volume. I expect that the Green Tide SWDF will rapidly attract significant business."


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