Imperial Energy Completes Third Well in Snezhnaya Field

Imperial Energy says Snezhnaya 138, the third of a series of a four appraisal/production wells on Block 77 in the Snezhnaya field, has been successfully drilled. The well was deviated from the Snezhnaya 135 well site to intersect with the Upper Jurassic, Vasugan reservoir 1500 meters to the WSW. The well was specifically targeted to confirm the extent of the field down the flank of the Sneznhaya structure.

Wire line logging shows 8m of net oil pay in line with expectations. The next well in the series, Snezhnaya 139 is anticipated to be spudded in approximately 2 weeks.

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 for the Snezhnaya Field.

Work on the production facilities in Block 77 is on track and progressing very well.

Peter Levine, Chairman, Imperial Energy Corporation PLC commented:
"We are very pleased with this drilling result from towards the edge of the Snezhnaya Field, which highlights the potential and the full extent of the Field.

This together with the other new wells at Snezhnaya will enable us to prove up the Field reserves and move some of the 2P category reserves into 1P reserves."