Imperial Energy

Capex

Future Plans

2008 Outlook

• The completion of Imperial’s 72-well drilling programme
• The commissioning of Imperial’s third pipeline in the Autumn
• Significant increase in Russian Registered Reserves
• Strategic action in relation to Rus Imperial Group
• The development of a strategy to utilise Imperial’s gas reserves
• Delivery on Imperial’s end of year production target rate
• Continuing technical evaluation of the Kazakh prospect

In 2008, Imperial plans to drill 69 production wells. The Directors are targeting an increase in production to 25,000 bopd by the end of 2008, 35,000 bopd by the end of 2009; 60,000 bopd by the end 2010 and 80,000 bopd by the end 2011. The targeted production is expected to come from at least five of Imperial’s fields: Snezhnoye, Maiskoye, Festivalnoye, Kiev-Eganskoye and Dvoinoye.

2008 work programme
Imperial is pursuing an aggressive work programme in 2008, the total expenditure in relation to which is expected by the end of the year including accrued payments to amount to approximately US$350 million. In total, the current programme includes 72 wells, 2D and 3D seismic surveys, pipelines and infrastructure construction. An exploration well is also being drilled currently at Imperial’s Torgai Block in Kazakhstan.

Imperial’s exploration programme for the Tomsk region in 2008 includes drilling three exploration wells: wells 361 and 362 at Kiev-Eganskoye and well 6 at Glukhovskoye.

In total, approximately 69 production wells are planned to be drilled on Maiskoye, South Maiskoye, Kiev-Eganskoye, Festivalnoye and Snezhnoye fields in 2008.

At Snezhnoye, drilling is expected to continue strongly through the year with some 24 wells drilled, hydraulically fractured on the Vasyugan reservoir, and put into operation.

At Maiskoye, Imperial plans to further develop the facilities and plans to drill 16 wells. Having successfully drilled and tested its first well at the South Maiskoye field, Imperial plans to drill a further 3 wells in 2008 under a pilot production scheme.

On Block 80, Kiev-Eganskoye, Imperial plans to drill the first production well in H1 2008. 3D seismic on that structure and the 2D seismic on other potential targets in this Block have been obtained ahead of schedule. Based on the results of these surveys, Imperial will drill two exploration wells on the north of the structure by the end of H1 2008 with an option to drill another appraisal/production well under a pilot production scheme. Pending further technical appraisal, over 2008, Imperial plans to drill some 15 production wells expected to be at Kiev-Eganskoye.

Festivalnoye will continue to be developed with approximately 10 production wells expected to be drilled during 2008.

Kazakhstan
Drilling still continuing at Imperial’s North Torgai property, Kazakhstan, with promising signs of oil already identified. Results of the exploration well are expected to be available by the end of May 2008.

Production

Imperial reached the 10,000 bopd 2007 year-end target production rate before the end of 2007. The total production in 2007 was 833,799 bbls. Approximately, 80% of production came from the Maiskoye field and 20% from the Snezhnoye field with a total number of producing wells reaching 25 by the end of 2007. 

Imperial Energy are forecasting production of 25,000 bopd by end 2008

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