2010-09-15-2010-09-13

Stalking horse bidder on 5,000 acres with 25 producing wells targeting the Devonian shale, gaining 400,000 Cf/d, several miles of gathering system.

Imperial Petroleum Inc., Evansville, Ind., (OTCBB: IPMN) is the stalking horse bidder on the Heartland properties in eastern Kentucky from the Heartland entities and partnerships with a $4.95-million offer in cash and other consideration.

The assets include 5,000 acres in the Devonian shale gas play that features 25 producing wells. Production is approximately 400,000 cubic feet of gas per day. and several miles of gathering system.

The remainder of the wells are cased and perforated but have not been fracture stimulated.

The sale is subject to approval by the U.S. Bankruptcy Court and the U.S. District Court for the Western District of Kentucky.

Imperial president Jeffrey T. Wilson says, "We took over operations of the Heartland assets a few months ago on behalf of the court-appointed Receiver, posted plugging bonds, began clearing up well violations with the state of Kentucky and have negotiated a new compressor site lease to prepare to re-start production."

The deal is expected to close by Dec. 31.