Imperial Closes Purchase of Oil and Gas Assets
|Friday, January 16, 2004
Imperial Petroleum has completed the purchase of the oil and gas assets of Warrior Resources, Inc. (formerly Comanche Energy, Inc.) and Hillside Oil & Gas LLC in a total transaction valued at approximately $11.96 million. As a result of the acquisition Imperial will become the operator of some 146 wells in the states of Louisiana, Mississippi, New Mexico and Texas and an additional 230 royalty properties in various states producing an estimated 280 barrels of oil per day and 1.6 million cubic feet of gas per day. Net proven reserves to the Company's interest as estimated by third party engineers are 1.3 million barrels of oil and 29.5 billion cubic feet of natural gas resulting in a discounted present worth at 10% of approximately $49.3 million.
Jeffrey T. Wilson, President of Imperial said "We are excited to have completed these previously announced acquisitions with the new $18.65 million credit facility. Jefferies & Company assisted us in arranging the financing and acted as an advisor on the acquisitions. Our new financing will allow us the flexibility to develop the inventory of behind pipe and undeveloped reserves associated with these properties and to continue our growth plan through additional acquisitions."