RusEnergy

24 July 2007 - Upstream OnLine - Imperial Energy said today its reserves and resources estimates which were signed off by DeGolyer & MacNaughton (D&M) are credible, adding that that it sees no valid ground for a Russian government working group to report to London Stock Exchange and Financial Services Authority. Reports published yesterday said a working group formed by Russia's Natural Resources Ministry to examine the differences between the D&M and the GKZ reserve estimates has sought a revision to Imperial Energy's estimates, Thomson Financial reported. The explorer said today that two wells, not one, have been tested at the Kiev-Eganskoye field and that both showed oil at the equivalent of commercial flow rates. Imperial added that only five wells seem to have been taken into account at the Snezhnoye field, but that it has nine wells on the field, all fracced with good commercial oil flows, Thomson reported. The company said it is confident that all concerns regarding its reserves can be answered satisfactorily and that it will be writing to the FSA on "certain matters regarding its share trading and share price". In a separate statement, Imperial said its new Zavyalova pipeline is processing all production from the Snezhnoye field and that it has spudded the Nulginskoye 403 well on Block 85. The company added its drilling and exploration prospects are in line with expectations and that it is on track for key production targets and further material progress in the fourth quarter of 2007.