Imperial Resources Inc. (OTC: IPRC) and its wholly-owned subsidiary, Imperial Oil & 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 bbl 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 bbl 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 bbl of oil and over 2 Bcf of gas with a productive life of approximately 25 additional years.
Work has been ongoing with a local geologist to identify prime spots within the Oklahoma AMI. Subject to funding, the company intends to commence a leasing program to purchase an initial 5,000 acres with the aim of commencing a drilling program. The geology confirms that the AMI displays similar characteristics to the geology of the land where the test well is located and the company believes that there is enormous potential to replicate the results of the test well over a large areal extent.
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