Imperial Energy Makes Oil Find in Western Siberia

Imperial Energy says the Snezhnaya 137, the second of a series of a four appraisal/production wells on the Nord Imperial, Block 77 Snezhnaya oil field has been successfully drilled and cased, ahead of schedule. The well was deviated from the Snezhnaya 135 well site to intersect with the Upper Jurassic, Vasugan reservoir 1500m to the ENE.

Wire line logging shows 17 meters of net oil pay, greater than was anticipated. The next well in the series, Snezhnaya 138 was spudded on December 11th.

When all four wells on Snezhnaya have been drilled they will be completed with stimulation by fraccing and then put on production during Spring 2006, forming part of Imperial's seven well early production scheme.

Work has commenced on the early production facilities in Block 77 and is progressing very well.

Peter Levine, Chairman, Imperial Energy Corporation PLC commented: 'The results from Snezhnaya 137 well, are very encouraging and suggest more potential than has previously been identified up until now from this field.

Work on our current winter 2005/6 program is progressing very well and we currently anticipate having winter roads in place and working by mid December prior to early production in Spring 2006'.

Block 77 covers some 1,000 sq km and is situated adjacent to Imperial's Sibinterneft Block 74 in Western Siberia. In Soviet times nine exploration wells were drilled on the block. On the basis of the limited amount of exploration undertaken there are official C1 and C2 reserves of equivalent to at least 8.4m barrels, of which 2.8m barrels is C1. Imperial nevertheless considers that these C1 and C2 reserves and those on Block 69 should not be classified as proven or probable reserves in the western sense until it can be demonstrated that they can be commercially produced. However these Blocks were not acquired just for these reserves, but for their very much greater upside potential.