Imperial Aims to Bounce Production Out of Slump

As Imperial Energy previously announced, production for February and March was less than expected due to technical and logistical issues and as a result Imperial currently estimates average production was approximately 7,000 bopd for Q1 2008. Imperial is confident that April will see a significant bounce back in sustained production levels and there is estimated to be some 5,000 bopd in deferred production from wells already drilled, completed and waiting to come on stream which will in due course complement existing production with further wells in the process of drilling.

The year-end targets of 25,000 bopd for 2008 and those for subsequent years as previously announced remain.

The construction phase of Imperial's 152km pipeline East of the Ob River is now effectively complete, nearly one month ahead of schedule. To build such a pipeline in very adverse and unpredictable weather conditions in three months including a two pipeline section, 1.2km under the River Ob, is a very significant achievement and unlocks the oil production potential of this area for the benefit of both Imperial and other companies operating East of the Ob River who may wish to make arrangements with Imperial.

The emphasis will now move to hydraulic testing which will be carried out through the spring, with first oil transport still due to take place in September 2008.

The completion means that Imperial has within the space of little over a year built 360kms of major pipeline infrastructure which are significant assets for the future and key to Imperial's prosperity.

As Imperial now has a very extensive pipeline network in the Tomsk Region, second only to Tomskneft in terms of producers, Imperial has set up an oil transportation division serving both its Nord Imperial and Allianceneftegaz subsidiaries. This division will ensure the maximum utilization of Imperial's valuable pipeline network, the promotion and development of oil sales and transportation and the purchase of oil and transportation from and for other oil companies in the Tomsk Region.