Imperial Energy Announces $200M Bank Facility

Imperial Energy Corp. PLC has entered into an Agreement for a US$200 million Bank Facility with ABN AMRO Bank NV.

Under the Agreement, a Bank Facility of US$200 million is being provided to Imperial, secured by way of share pledges given by certain companies within the Imperial group ("Group"). The Bank Facility will be available for draw-down subject to the satisfaction of certain conditions precedent, which the Group is confident, will be satisfied by the end of this month.

The Group will utilize the available funds for its capital and exploration expenditure, operating costs and general corporate expenditure across all its operations.

The Bank Facility bears interest at 3.25 percent over US$ Libor for the first six months of the facility, increasing to 3.75 percent for the second six months and 4.75 percent for the remainder of the term. Pending completion of the Group's pipelines which are currently under construction and until 6,000 bopd production is attained there is an additional increment of 1percent in the margin. If the separate financing of the Group's 3 rigs, currently on order, is not completed by 31 December 2007, there is an additional increment of 0.375 percent in the margin. If a refinancing by way of borrowing base facility is not completed by 30 September 2008, there is a further additional increment of 0.375 percent in the margin. Any Bank Facility monies unutilised carry a commitment fee of 50 percent of the applicable margin.

The Bank Facility is not subject to any financial covenants.

Whilst the Bank Facility is for a term of 19 months, Imperial plans to refinance it before the expiry date, and accordingly ABN AMRO Bank NV has agreed not to impose an early redemption penalty.

Peter Levine, Chairman, commented:

"The Bank Facility is another important step in providing Imperial with the means to deliver its objectives to the stage where it is expecting to be a substantial producer. The terms reflect the status and credibility of Imperial and are consistent with the Board's strategy of financing operational capex out of debt."

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