Imperial Resources, Inc. and Imperial Oil and Gas, Inc. announced an update on developments at its rebuilt Green Tide Salt Water Disposal Facility. The company has been rigorously testing the SWDF to ensure that once commercial operations commence customer interruptions are kept to an absolute minimum. This process has been somewhat hampered by storms and significant amounts of rain.

However the testing has demonstrated the mechanical modifications made to the gun barrel tank appear to have been successful. The main pump has tested positive. The transfer pumps are working as designed.

The sump system has worked better than expected, being tested by the heavy rains. As a result of the testing, the vompany has made a decision to install all metal fittings to the first shut off valve coming out of each tank. The vompany has been transferring its test water from place to place to retrofit each shut off valve.

While this process is time consuming it is faster than pumping current test water down hole and having to obtain more water. However, the vompany reported that the retrofits will be completed this week. Additionally, a few PVC connections were found to leak and those will be sealed or contained over the next week as well.

While this step by step testing process and tweaking of the system has caused some unexpected and unwanted delays in bringing the plant online, the company felt now was the time to complete the strengthening of these vital connections rather than open prematurely. To have to shut down to make these changes once the SWDF is open and operating would cause disruption to customer's schedules, which the company considers it is paramount to avoid. Demand for water disposal remains strong and the company is pleased to note a surprising amount of activity in the Barnett Shale despite the recent low gas prices.

The company is confident it can attract disposal business up to the full operational limit of the SWDF once it is functioning, which the company believes will provide substantial cashflow.