Imperial Energy Confirms Receipt of Unsolicited Offer

Further to recent press speculation and at the requirement of the Financial Services Authority, the Board of Imperial Energy announces that the recent unsolicited indicative proposal was from Gazprombank. As previously announced the proposal is for the subscription of newly issued shares which when issued would represent up to 25% of Imperial's enlarged issued share capital at an indicative price which is at a discount to the prevailing Imperial share price as at November 1, 2007. The Board of Imperial Energy is currently reviewing this proposal and there is no certainty that any agreement will be entered into.