Imperial Completes Agreement for International Development of Oil Sands Technology

EVANSVILLE, Ind. - (BUSINESS WIRE) - Imperial Petroleum, Inc. (OTCBB: IPMN) announced that it has completed an agreement to develop its previously announced oil sands recovery technology in Canada and certain countries internationally. Under the terms of the agreement, Clean Sands International, Inc. paid the Company a total consideration of $500,000 in the form of debt cancelation for loans to build the Commercial Oil Sands Demonstration Unit and for the cash purchase by the Company of the 33.3% interest owned by Proven Technology in Arrakis. The Company also acquired the 33.3% interest owned by Heskett Holding I, LLC in Arrakis as part of the transaction. Clean Sands will, over the next 12 months, pursue development and provide the capital for the initial application of the oil sands recovery process at a pre-arranged location in the United States and will pay the Company a 1.66% royalty on gross proceeds from that site. Imperial will receive a 2.5% royalty interest on the use of and application of the technology in Canada, Russia, Mexico, Venezuela and Argentina in exchange for its international rights. The Company, through its license agreement in Arrakis will continue to own non-exclusive rights to use the technology in the United States and is developing plans to move the unit it owns in Houston to a site in Kentucky, Missouri or Utah. The oil sands recovery process uses a non-thermal, mechanical and chemical closed-loop system to recover the bitumen or heavy oil from oil sands.