2011-03-02-2011-02-23-2011-02-23

Bought 97.5% WI in gas pipeline that services Coquille Bay Field, 97.5% WI in transportation agreements on sales from field and an additional 26% WI in the field in exchange for the issuance of approximately 1.29 million shares of its restricted common stock.

Imperial Petroleum Inc., Evansville, Ind., (OTCBB: IPMN) has closed the acquisition of a 97.5% interest in the gas pipeline that services its Coquille Bay Field in Louisiana; a 97.5% interest in the transportation agreements governing oil and gas sales from the field; and the purchase of an additional 26% working interest in the field in exchange for the issuance of approximately 1.29 million shares of its restricted common stock.

Imperial president Jeffrey T. Wilson says, "The purchase of the pipeline and transportation agreement eliminates a gathering fee associated with the sale of crude oil and natural gas for the company's interest equal to $3 per barrel and $1 per thousand cubic feet over the life of the field and gives the company control of the physical pipeline. In addition we purchased additional interests to consolidate our position in the production assets."

Imperial plans to return the field to full production this week and expects to produce between 70 to 100 barrels of oil and between 100,000 to 200,000 cubic feet per day by the end of February, according to Wilson. "Numerous additional workover opportunities exist in these wells, which, subject to available capital, will allow us to further enhance production," he adds.