SOURCE: Imperial Resources, Inc.

February 17, 2011 07:45 ET

Imperial Resources, Inc. to Commence Drilling Operations on Nunnelly #1 Well in Montague County

AUSTIN, TX--(Marketwire - February 17, 2011) - Imperial Resources, Inc. (OTCBB: IPRC) is pleased to announce that its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company," "Imperial") will shortly commence drilling operations to reenter its existing abandoned wellbore located in a 35 acre mineral lease in Montague County, Texas, acquired by the Company on 21 January, 2011.

The Company has now finished its survey of the Nunnelly #1 wellbore, and believes there to be three existing casing strings within the well.

The Company has carefully prepared a multi step approach to perform the reentry in order to minimize costs in the event of unforeseen circumstances.

The survey to date has not revealed any obstacles within the hole above the assumed plug apart from a bend/kink in the near-surface section of the casing. This will require some minor remedial work; cutting off and replacing the top twelve feet of the casing strings; welding on casing hangers to prevent them from falling in the hole; and the introduction of surface equipment to prepare for drilling. A drill pad will be prepared and a well service rig will be mobilized to the site to drill out the assumed plug and attempt to get to the bottom of the existing well.

Subject to this stage of operations being successful and reaching the currently estimated Total Depth ("TD") of the well already believed to be drilled to 5,018 feet, additional work will be performed to continue drilling to approximately 6,500 feet, at which point both closed and open hole logs will be run. If these are satisfactory, the well is expected to be completed. It is expected that some existing perforations will need to be squeezed off and additional casing run to the new TD.

Imperial is currently concluding its own evaluation of the potential reserves and will update shareholders shortly.

Robert Durbin, CEO, commented: "I regard this as an excellent opportunity. The majority of the wellbore observed appears to be in pretty good shape and by going at this step by step we should be able to establish high probabilities of success without too much financial risk. If successful, the costs associated with the reentry should be substantially lower than drilling a new well. Even if we did have to drill from scratch, which is still an option, we still believe it likely to be economic."

About Imperial Resources, Inc.
Imperial Resources, Inc., through its wholly owned subsidiary, Imperial Oil & Gas, Inc. has a highly focused, risk-averse strategy of building a substantial portfolio of oil and gas assets through its access to niche, low risk oil and gas opportunities in the onshore U.S. Imperial aims to exploit projects which can deliver cash flows normally associated with higher risk projects but without exposure to high risk failure rates.

To find out more about Imperial Resources, Inc. (OTCBB: IPRC), visit our website at Details of the Company's business, finances, appointments and agreements can be found as part of the Company's continuous public disclosure as a reporting issuer under the Securities Exchange Act of 1934 filed with the Securities and Exchange Commission's EDGAR database.

Forward-Looking Statements
Statements in this news release that are not statements of historical fact are forward-looking statements, which are subject to certain risks and uncertainties. Forward-looking statements can often be identified by words such as "expects," "intends," "plans," "may," "could," "should," "anticipates," "assumes," "likely," "believes" and words of similar import. Forward-looking statements are based on current facts and analyses and other information that are based on forecasts of future results, estimates of amounts not yet determined and assumptions of management. Actual results may differ materially from those expressed or implied by forward-looking statements due to a variety of factors that may or may not be foreseeable or within the reasonable control of the Company. Readers are cautioned not to place undue reliance on such forward-looking statements. Additional information on risks and other factors that may affect the business and financial results of the Company can be found in filings of the Company with the U.S. Securities and Exchange Commission, including without limitation under the caption "Risk Factors" in the Company's Annual Report on Form 10-K filed on July 9, 2010. Except as otherwise required by law, the Company disclaims any obligations or undertaking to publicly release any updates or revisions to any forward-looking statement contained in this news release to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

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