AUSTIN, Texas, June 2, 2011 /PRNewswire/ — Imperial Resources, Inc. (OTCBB: IPRC) today is pleased to announce that its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the “Company”, “Imperial”) has completed the Agreement announced on April 28, 2011 and has acquired the Salt Water Disposal Facility (“Facility”) located in the heart of the Barnett Shale in Texas.

Highlights:

• Very high demand location
• Projected strong cashflow even at conservative assumptions
• Facility operating breakeven projected at just 15% of permitted capacity
• Facility ready to restart operations, subject only to deepening well
• Significant capital value uplift expected on restart

The Facility

The Facility is conveniently located for the disposal of large volumes of salt water generated from essential fracture stimulation operations on Barnett Shale gas wells. There are approximately 6,000 such wells within 20 miles of the Facility.

It consists of a relatively new, completed surface plant on approximately 41 acres of freehold land well located by a State highway, and an existing shallow well bore. The Facility has an existing permit for the disposal of up to 15,000 barrels of salt water per day, conditional only upon deepening the well bore into the Ellenberger formation. The investment in the Facility by its original owner is estimated by the Company to be in excess of $5,000,000.

Imperial plans to deepen the well and reopen the Facility to dispose of up to 15,000 barrels of salt water a day. Disposal rates in the area range from approximately $0.40 to $0.60 per barrel of water, even at less attractive, generally more distant facilities. The Company also expects to benefit from the recovery and re-sale of “skim oil” generally contained in disposed water. The Facility operating break even point is estimated at around only 2,225 barrels of water per day (around 15% of permit capacity), even assuming low end $0.45 per barrel disposal rates and excluding any skim oil revenues.

The total development cost to Imperial to bring the Facility on stream is expected to be up to $1,200,000. If it can be brought back on line as the Company expects, the Company anticipates that capital value of the Facility will be very considerably uplifted, in addition to the ongoing, non-depleting cashflow the Company expects to generate from it.

The Facility is one of two key projects identified as transformational for Imperial (the other being the Company’s Oklahoma project).

Tom Barr, Director of Imperial, said; “I look forward, subject to financing, to Imperial bringing the Facility on line later this year to take advantage of the buoyant disposal demand in the Barnett Shale area.”

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.

Source: Imperial Resources, Inc.
Contact:
Rob Durbin, CEO
Telephone:
512 322-5740

http://www.imperialresourcesinc.com/pages/contact

SOURCE Imperial Resources, Inc.