Imperial Resources, Inc. and its subsidiary, Imperial Oil and Gas, Inc. announced that a well in which Imperial owns a nominal interest in the same blanket formation as in the company's Area of Mutual Interest in its key Oklahoma resource play, is currently producing at flow rates of around 167 Barrels of Oil per day and in excess of 650 MCF of gas per day. The Test Well was put onto production in November 2011 and has achieved flow rates in excess of 360 BO and 850 MCF of gas per day. Cumulative gross production to date is in excess of 20,431 BO and 52,483 MCF of gas. In line with the company's conservative strategy, Imperial took a nominal position in the Test Well to obtain partner level access to the results of an optimized fracture protocol, at minimal risk. The Test well has validated the recovery technique applicable to potential wells in a new AMI of 144 square miles (92,000 acres), entered into with its Test Well partner on January 10, 2012. This is seen as a potential "Company Maker" for Imperial. Subject to funding, the company intends to commence a leasing program in the new AMI as soon as possible. Imperial believes that the value of acreage positions in the resource play will continue to climb, as demonstrated by Imperial's purchase of similar acreage in 2011 which generated an uplift in value of over 350% in less than 9 months. The new AMI also increases Imperial's potential working interest ownership from 50% to 90%. The Oklahoma resource play is one of two key projects identified as transformational for Imperial.