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cyril

Imperial Energy Exploration Update


RNS Number:2073D
Imperial Energy Corporation PLC
04 September 2007

IMPERIAL ENERGY CORPORATION PLC
("Imperial Energy" or "Imperial")

EXPLORATION UPDATE

TWO NEW DISCOVERIES
and
TWO NEW SPUDDINGS

Imperial, the energy company, today announces two new exploration discoveries
and a further exploration drilling update in relation to its Tomsk, Western
Siberia, Russian Federation interests.

North Chertalinskoye Field, Block 70

The new exploration well North Chertalinskoye 403 has successfully identified
potentially substantial oil deposits.

The reservoirs are in the Bajenov, Jurassic and Tyumen sections with net oil pay
in aggregate estimated at 68 metres identified through logs and cores. It is
anticipated that the Tyumen section be flow-tested by fraccing later this month
with the other sections to be tested during the winter period.

As at 31 December 2006, DeGolyer and MacNaughton estimated SPE 2P reserves at
North Chertalinskoye at 46 mmbbls which only took into account 33 metres of net
oil pay.

Subject to satisfactory testing, application will be made as soon as possible,
and in any event during the course of this year, for registration of Russian
Registered Reserves in this field. There are currently no Russian Registered
Reserves for North Chertalinskoye.

Nyulginskoye Field, Block 85

The new exploration well Nyulginskoye -2, having been spudded in July, has
successfully identified promising intervals of oil in the Cretaceous and Tyumen
sections.

Net oil pay is estimated in aggregate to be 7 metres through logs and cores.
It is anticipated that this well will be flow-tested later this month.

There are currently neither SPE based reserves nor Russian Registered Reserves
for the Nyulginskoye field. Subject to satisfactory testing application will
be made as soon as possible and in any event later this year, for registration
of new Russian Registered Reserves on this field.

Tamratskoye-3, Block 85

This new exploration well was spudded on 27 August 2007 and is currently beyond
1000 metres depth with a targeted depth of some 3000 metres. DeGolyer and
MacNaughton estimated SPE 2P reserves at Tamratskoye at 3.4 mmbbls. There are no
current Russian Registered Reserves in respect of this prospect.

Buranovskoye-2, Block 74

This new exploration well was spudded on 30 August and is currently at 800
metres depth with a targeted depth of some 3000 metres. There are no current
SPE 2P reserves nor Russian Registered Reserves in respect of this prospect.

South Maiskoye 395, Block 70

This new exploration well is projected to be spudded later this month. There
are no current SPE 2P reserves nor Russian Registered Reserves for this
prospect.

Peter Levine, Chairman, commented:

"The continued major exploration works we are carrying out and its large
concomitant financial investment, in parallel to all the efforts we are making
in production, infrastructure and pipelines is now being realised and is
concrete evidence of Imperial's ability and success in its endeavours".

Date: 4 September 2007

Enquiries:
Imperial Energy Corporation PLC

Inga Jarkikh +44(0) 207 758 9658
Pelham PR

James Henderson +44(0) 207 743 6673/ +44(0) 777 4444 163

Gavin Davis +44(0) 207 743 6677/ +44(0) 791 0104 660

Evgeniy Chuikov +44(0) 203 008 5506/ +44(0) 789 4608 606



Christopher Hopkinson, Chief Executive of Imperial Energy, a member of the
Society of Petroleum Engineers who holds a BSC Hons from St Andrews University
in Applied Physics, is the qualified person that has reviewed and approved the
technical information contained in this announcement.

NOTES TO EDITORS

(1) SPE reserves are reserves calculated in accordance with the rules set
out by the internationally recognized Society of Petroleum Engineers.

(2) SPE 2P reserves are generally recognized as incorporating Russian
Registered Reserves classification C1, C2 and some C3.

(3) Imperial Energy is an independent oil exploration and production
company listed on the Main Market of the London Stock Exchange with operations
in the Russian Federation and Kazakhstan. The Company is targeting 10,000 bopd
production by end of 2007, 25,000 bopd by end of 2008 and 35,000 bopd by the end
of 2009. Imperial has an extensive programme in 2007 including some 30
production, appraisal wells and exploration wells, the completion of the
construction of 208km of pipeline, oil processing facilities and the development
of its own rig company.




This information is provided by RNS
The company news service from the London Stock Exchange
END

Could be a good day today me thinks

blanche; the market does not like uncertainty, so until the reserve issue is sorted their will imo be no worthwhile rise in the SP. I feel on reading Aton's report,
we will have production from the pipelines and also the answer to the $64,000
question(reserves) via the interims?
We could also have the results of the 2 wells recently spudded.
Tamratskoye-3 possible 20th Sept
Burovskoye-2 possible 23rd Sept
Thats if present rate of progress is maintained,slightly optomistic perhaps?
But back to the question of the reserves, their seems to be a different way
of presenting the information, and i believe we will have some sort of compromise which will allow IEC to get on and do what its suppose to be doing, and that of course is producing oil. Must be to the benefit of the Russians as they have very favourable tax agreement, which is much needed revenue for them.

blanche; the market does not like uncertainty, so until the reserve issue is sorted their will imo be no worthwhile rise in the SP. I feel on reading Aton's report,
we will have production from the pipelines and also the answer to the $64,000
question(reserves) via the interims?
We could also have the results of the 2 wells recently spudded.
Tamratskoye-3 possible 20th Sept
Burovskoye-2 possible 23rd Sept
Thats if present rate of progress is maintained,slightly optomistic perhaps?
But back to the question of the reserves, their seems to be a different way
of presenting the information, and i believe we will have some sort of compromise which will allow IEC to get on and do what its suppose to be doing, and that of course is producing oil. Must be to the benefit of the Russians as they have very favourable tax agreement, which is much needed revenue for them.

market unimpressed ....end of, at least for the moment

Niceonecyril, I agree, just very frustrating for me this is one of about six shares in my current portfolio which should be double their current price (min).We just need more positive rns and soon, (get that oil pumping) then it will kick back into life.20 by end of 2007 imho 8-)

Imperial Energy Corporation - BUY Price: 907p Target price: 1400p Code: IEC.L Analyst: Tim Heeley | 020 7776 6933

Further exploration next step has to be production through the pipelines
Imperial has announced continued success on its acreage in Western Siberia.
New discoveries have been announced on Block's 70 and 85, the former having the potential to double the reserves on the North Chertalinskoye field as the net pay encountered is twice the size as used in determining the 2P reserve of 46mmbboe.
Two new exploration wells have commenced and will reach target depths by October/November
Imperial has consistently shown it can add to its reserves base and the prospectivity of the region is without question. The next step for Imperial is to commence production through its completed pipelines and show it can produce the oil it is finding. This will be aided by the completion of the transfer with Transneft and is expected by the company to take place in September /October.
We maintain our buy recommendation and target of 1400p.

Imperial Energy, a London-listed oil producer with assets in Russia, is in talks with other oil companies to build a refinery in the Tomsk region
Imperial may own up to 10 percent of the project.

The refinery may have an initial capacity of 1 million tons per year, or 20,000 barrels per day, RBK Daily said, citing Yury Zelvensky, the head of Imperial's Tomsk operations. (Bloomberg)

certainly sp looks to have found its bottom, so to speak! ...... i would also agree that on the recent news etc, it ought to be a damn sight higher, but the same thing could equally be said about POG ...... my guess is that if sp ever gets back in gear, and i suppose it will eventually, then it could race upwards certainly to about 1025 where 200 dma currently resides

Surely IEC should be focussed on oil production before getting involved in oil refinery construction projects which will take years. Chicken and the egg springs to mind!!

would not disagree, but certainly a strong buy note even if the source is not too apparent and they also made another good discovery just the other day

The reality is whether IEC is producing the 6000 barrels per day promised in the year end results statement issued in April 2007. Interims due in next 3-4 weeks.

www.imperialenergy.com/investor_files/Imperial_Presentation_05_09_07.pdf

I wonder by considering a refinery they are making a statement of intent?
cyril

Once again i can't get it up(now,now)referring to the presentation? Works if you
do it manually.
cyril

Forecast production yr 2009 35000 bopd, does that justify spending hundreds of millions of dollars on an oil refinery? Is IEC upstream or downstream or merely up the creek?

At the moment the refinery are just discussions,it to me would look bad on Mitvol
to continue his campaign against a company that is investing so much in the
country. This will not look good to other would be investors and could be a clever ploy to put pressure on the man? Mitvol is at present in the USA meeting
institutions,probably trying to explain his actions,with D&M being a well
respected US company he will be under some pressure thats for sure.
It is in the interest of Russia to encourage Western technolgy so i feel(hope)
he will see things differently, and he is after all only a 2nd in command.
All my own thoughts?
cyril

i have dwelt on this overnight, and despite my puzzlement and minor misgivings about IEC buying up to 10% (plesae note small stake) of a proposed refinery, i have bought this morning at 902.5

blanche will be in for a good smacked bottom if she has seduced me wrongly, and a share of bottle of bubbly if right .... think she may prefer that to a kiss!

You know it makes sense cynic! Time will see this back where it should be, after all 35000 bopd not to be sniffed at. Many oil explorers out there would be happy with that as a long term forecast. (P.S. ooh i say!)

what makes sense? ..... smacking your bottom or buying some decent champagne to share? .... lol!

slightly more seriously, for i think i am almost incapable of being totally so, IEC's sp has bounced around this 900 mark for a little while ...... there was already indicated support at that level, and this has been reinforced ..... the additional find was scarcely negative, and though it would be good to know if the BUY note came from a source of high repute, a modest investment did not look unduly rash in any case.

btw, take a look at PFC - one of my faves in an associated sector

Abn Amro has raised its buy target to 14.35