Imperial Resources, Inc. and Imperial Oil and Gas, Inc. announced an update on the production from a well in which Imperial owns a nominal interest and is producing from the same formation targeted in the company's Area of Mutual Interest in Oklahoma. The company has recently updated its reserve analysis for the Test Well based on the history of the well since production began. The Test Well came onto production in November 2011 and achieved flow rates in excess of 360 barrels of oil and 850 McF of gas per day.

After predicted initial production declines the well has continued to produce in line with expectations with cumulative production through July 31, 2012 of 42,539 barrels of oil and 152,586 McF of gas. Based on that historical production the Company is able to establish a better idea as to the ultimate recovery of the well. The results of this analysis indicates that the Test Well will have an ultimate recovery of 182,213 barrels of oil and over 2 billion cubic feet of gas with a productive life of approximately 25 additional years.

To be conservative, the analysis was performed using July prices assuming a cost of $85.69 per barrel of oil and $3.67 an McF for gas over the life of the well, with no escalation. This means that if the prices rise above those numbers the productive life of the well will be extended.