Gazprombank and Imperial Unable to Reach Agreement

Further to Imperial's announcements earlier this month regarding an unsolicited indicative proposal from Gazprombank to subscribe for newly issued shares in Imperial Energy at a discount to the prevailing Imperial share price as at November 1, 2007, Imperial announces that discussions have now concluded and the initial proposal will not be progressed.

However both Groups take the view that there is room for mutual cooperation between them in the petroleum industry of Russia in other ways. This is intended to be pursued in due course and as may be appropriate.