Russia Verifies Reserves at Imperial's Sredneglukhovskoye Field

Imperial says that the Russian Government Commission for Natural Resources Reserves ("GKZ") has confirmed and approved reserves for the Company’s Sredneglukhovskoye Field, Block 70, Tomsk Region, Western Siberia, Russian Federation.

The Sredneglukhovskoye Field, like the Golovnoye Field before it, is a new discovery where there were previously no Russian classified reserves prior to Imperial’s successful new exploration drilling.

Imperial’s successful exploration drilling as well as its seismic work and re-interpretation of Soviet era seismic has meant that GKZ has now confirmed and approved Russian C1 category reserves of 451,000 tonnes and C2 category reserves of 4,563,000 tonnes making an aggregate of Imperial’s C1 and C2 reserves equivalent to 39.7 mmbbls.

The 39.7 mmbbls compares favourably with the 25 mmbbls SPE 2P reserves of Imperial estimated for the Sredneglukhovskoye Field by DeGolyer and MacNaughton as at 31 December 2006.

Imperial will now apply for a commercial production licence for that field.

Imperial is in the process of preparing applications to GKZ, to be made during the latter part of 2007, for registration of what is expected to be further substantial amounts of Russian Registered Reserves arising from two specific operational activities;

-the new discoveries consistently being made by Imperial as referred to in Imperial’s exploration updates and

-increases in already registered Reserves through the company’s extensive production/appraisal programme.

Peter Levine, Chairman, commented:

"This is further evidence of the clear and deliverable step by step increase in our Russian Registered Reserves and the progressive narrowing of the gap between those and our existing SPE reserves.

Following the registration of Reserves on the Golovnoye Field, this is yet another definite pointer to the future which supports and underlines the credibility and integrity of our assets."