Imperial Advances Toward Tomsk Production Goal

Imperial Energy has successfully completed the laying of its two pipelines in the Tomsk Region, Western Siberia. The laying of the two pipelines, a total of 208km in length, is a major step toward being able to deliver on Imperial's planned production target of 6,000bopd by end of summer 2007.

The first pipeline, Snezhnaya-Zavyalovo, is 49km in length and will serve Imperial's Blocks 74 and 77. The second pipeline, Maiskaya-Festivalnaya-Luginetskoye, is 159 km in length and extends from Imperial's Maiskaya field, Block 70, through Festivalnaya field, Block 69 to the Transneft tie-in at Luginetskoye. This pipeline will serve Imperial's Blocks 69, 70, 85 and 86.

Imperial is now proceeding with the complex construction of the two custody transfer stations at the designated Transneft tie-in points at Zavyalova and Luganetskoye, Tomsk Region.

Notwithstanding that the custody transfer stations remain to be completed, it is now projected that first oil from Imperial's Snezhnoye and Maiskoye fields will start to flow into Imperial's own pipelines by end June. The company is still on track to reach its production target of 6,000 bopd by the end of the summer.

"Completion of the laying of the pipelines is a significant achievement and is another building block that will enable Imperial to achieve its production objectives," said Peter Levine, Imperial's Chairman.

Imperial Energy is an independent oil exploration and production company with operations in the Russian Federation. The Company is currently targeting 10,000 bopd production by end of 2007, 25,000 bopd production by end of 2008 and 35,000 bopd by the end of 2009. Imperial currently has 802.6 mmbbls of independently audited 2P Reserves including 159.4 mmbbls in the 1P category. Imperial has an extensive program in 2007 including some 30 production, appraisal and exploration wells. Imperial has also established its own rig company with the objective of ensuring it has the capability to deliver on this program.