Imperial Sells Of Share Of Louisiana Field, Will Focus On Biofuels Business

Transaction Type
Sellers
Announce Date
Post Date
Close Date
Estimated Price
0MM
Description

Acquired stake in Coquille Bay Field in Plaquemines Parish, LA.

Imperial Petroleum Inc., Middletown, Ind., (OTCBB: IPMN) has finalized the sale of its share of the ownership of the Coquille Bay Field in Plaquemines Parish, Louisiana, to Eleven Energy Corp. for $100 cash and assumption of plugging liabilities and requirement of a bond with the State of Louisiana Department of Natural Resources.

Along with the cash consideration, the deal also relieves Imperial Petroleum of the monthly cost of approximately $60,000 and enables it to cancel the $1.4-million bond it was required to carry.

Imperial acting chief executive Tim Jones says, “The Coquille Bay field has the potential to generate a meaningful amount of oil and gas but the costs of repairing it after the damage that was caused by Hurricane Katrina and the ongoing costs of operating it, made it a burden that made little sense for a company that was concentrating its efforts on biofuels.”