Imperial Petroleum Acquires Stake in Bastian Bay Well

Imperial Petroleum has acquired a 72% working interest in the SL 16152 #1 well in the Bastian Bay area of south Louisiana. The Company's interest is subject to a reversion after 150% payout of a workover project to return the well to production. The well originally tested at 2.5 million cubic feet per day with 4,500 psi flowing pressure several years ago from a reservoir containing over 50 feet of productive sand. After a lengthy lawsuit which delayed the pipeline connection, the well developed a surface leak in the wellhead and was unable to produce continually after it was repaired by the previous operator. Imperial plans to conduct workover operations to either return the existing zone to production or recomplete the well to a new zone behind the pipe.

Jeffrey Wilson, CEO of Imperial said, "The well builds up surface shut-in pressures to 2,500 psi after long shut-in times and we suspect the well is loaded up with the water used to kill the well from the prior work and can be returned to production. If not, the behind pipe formation is available for a new completion as an alternative. If we are successful, we would expect the reserves in the current zone to be approximately 2-4 Bcf of gas. Individual well recoveries in the adjacent fault blocks have ranged from a low of 0.7 Bcf to a high of 43 Bcf."