Imperial Energy reports two operational milestones

Imperial Energy announces the attainment of two significant operational milestones with regard to pipeline transportation of its oil to market and the material increase in Group production to 8,500 bopd.

Oil from Imperial’s Maiskoye Field, Block 70, Tomsk, Western Siberia, Russian Federation, is now flowing through the company’s US$15 million Maiskoye Field Processing Facility, along Imperial’s own 159 km pipeline and into the Transneft national transport system at the Luginetskoye station.

Transneft has provided the company with written permission for the flow of oil which is now being sold into the market. First cash receipts from sales of the pipeline oil are due to be received before the end of the first week of November.

The current rate of production from Maiskoye is in excess of 6,000 bopd from 4 horizontal wells. Another 5 more wells, of which 3 are horizontal, will be brought on line before the end of the year with the expectation of increasing production significantly.

For a short period Imperial is making use of a third party’s tie-in facilities at Luginetskoye pending commissioning of Imperial’s own tie-in facility projected for November 2007. The Zavyalovo tie-in for Imperial’s second pipeline from its Snezhnoye field is expected to be commissioned at the same time.