SOURCE: Imperial Resources, Inc.

March 30, 2011 09:07 ET

Imperial Resources, Inc. Stateline Infill Project -- Reserve Evaluation

AUSTIN, TX--(Marketwire - March 30, 2011) - Imperial Resources, Inc. (OTCBB: IPRC) today is pleased to announce that its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the "Company," "Imperial") has conducted an evaluation and has obtained a reserve report on its Stateline infill development project ("Stateline") in the existing Sawyer Field, located in Lea County, New Mexico.

Imperial has obtained a right to earn acreage by drilling wells in the undrilled portion of the lease which is held in its entirety by existing production. The acreage is sufficient to accommodate four vertical infill wells under current acreage spacing requirements in the Sawyer Field, targeting the San Andres Formation.

The Company believes gross recoverable reserves from the first well are in the order of 64,274 barrels of oil and 104,540 mcf of gas. The Company will earn a 90% WI in the first well, with the Farmor retaining a 10% working interest, upon completion. The Company has to carry the Farmor on the Stateline Prospect for its 10% through the casing point on the first well only. After that point, the Farmor pays 10% of all costs associated with completing the first well and all operating expenses. 

On any of the other wells that may be elected to be drilled by the Company in the Prospect there is no carry, the Farmor having to pay its 10% contribution of all costs associated with those wells.

The Company estimates that the three further wells will also have gross recoverable reserves in line with the estimates for first well, resulting in total reserves for the four Stateline wells in excess of 250,000 barrels of oil and 400,000 mcf of gas, subject to adjustment after analysis of and taking into account the results of the first well and a third party reservoir analysis report which the Company intends to obtain from an independent registered petroleum engineer.

The Stateline reserves are classified as Proven Undeveloped Reserves (also referred to as 1P or P90), at the very lowest end of industry risk. The Company's capital expense for the first well is expected to be around $635,000.

The Company believes that the wells offer a rapid payback of investment (under two years from first production at an $85 oil price model) coupled with a long productive life.

Stateline fits nicely with the Company's objective to exploit niche, low risk oil and gas opportunities in the onshore U.S. with the potential to deliver cash flows normally associated with higher risk projects, but without exposure to high risk failure rates.

Imperial believes that Stateline offers the Company a low entry cost complementary opportunity (subject to the commercial success of the infill wells) to build significant production and reserves as the Company progresses, in concert, its planned transformational Oklahoma Resource Play.

Rob Durbin, CEO of Imperial, said, "Stateline fits with our profile, as low a risk as possible and a nice potential return. Find something that works and do it again and again. The area around Stateline has proved to be successful in the past and should be again and again."

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 www.imperialresourcesinc.com. 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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