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Imperial Resources Tests the SWDF

Source: www.gulfoilandgas.com 7/27/2012, Location: North America

Imperial Resources, Inc. and its wholly owned subsidiary, Imperial Oil & Gas, Inc. (together the ‘Company’, ‘Imperial’) is pleased to announce that testing of the rebuilt Green Tide Salt Water Disposal Facility (‘SWDF’) is progressing well.

On Tuesday July 24, 2012 the SWDF recirculated approximately 360 barrels of water through most of the system to test the integrity of the new plumbing. The Company was able to test all but the final flow lines to the main pumps and with one exception (the offloading lines) all leaks were located and corrected. The two offloading lines were found to be structurally deficient and have been re-engineered using replacement components and will now be tested.

The main disposal pump was run and as expected found to not have been damaged by the lightning strike and fire. The transfer pumps, damaged during the lightning strike last year and subsequently repaired, were tested and ran very well.

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.

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