Published:
Imperial Announces Deal to Acquire Oil Properties
EVANSVILLE, Ind. - (BUSINESS WIRE) - Imperial Petroleum, Inc. (OTCBB:IPMN) announced that it has signed a
letter of intent to acquire approximately 20 oil wells located in
Louisiana from an undisclosed seller. Under the terms of the sale, the
Company will pay the seller (i.) $350,000 in the form of a Promissory
Note with a one-year term secured by 1.75 million shares of the
Company's stock; (ii.) 1.0 million shares of the Company's restricted
common stock and (iii.) a twenty-five percent back-in after payout
interest to the seller. The deal is subject to a mutually acceptable
Purchase and Sales Agreement.
"The Louisiana acquisition has proved developed reserves of
approximately 200,000 barrels of oil based on engineering estimates,"
Jeffrey T. Wilson, President of Imperial said. "We will need to spend
approximately $550,000 to increase production by about 60 Bopd through
low-risk repair workovers on these shallow wells. Current daily
production is about 3-5 Bopd from two active wells. We will need to
raise the development capital or leverage our existing production in
order to fund the project, however, we believe that purchasing oil
reserves at around $3.38/bbl in today's environment is an excellent
acquisition."
Imperial is an oil and natural gas exploration and production company
headquartered in Evansville, Indiana.
This press release may contain "forward-looking statements" as that term
is defined in the Private Securities Litigation Reform Act of 1995. Such
statements are based on management's current expectations and are
subject to a number of factors and uncertainties which could cause
actual results to differ materially from those described herein.
Although the Company believes that the expectations in such statements
are reasonable, there can be no assurance that such expectations will
prove to be correct.
Imperial Petroleum, Inc.
Jeffrey T. Wilson, 812-867-1433
email:
jtwilsonx1@aol.com
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