Imperial Resources, Inc. and Imperial Oil and Gas, Inc. announced that it is progressing its key Oklahoma resource play. As announced in January 2012, the Company has entered into a new 144 square mile Area of Mutual Interest ("AMI") in Oklahoma with its prospect generator. Under the terms of the AMI agreement Imperial will retain a 90% working interest. In early 2012 the Company commenced working with a geologist who has extensive experience in the area to identify the most productive sections within the large AMI. Using that information, the Company will develop a leasing plan to accumulate as much productive acreage as possible within the AMI. Imperial believes that the resource play formation within the AMI provides substantial drilling opportunities and excellent potential for uplift in acreage prices, as demonstrated by Imperial's purchase and sale of nearby similar acreage in 2011/early 2012, for a profit of over 250% in just 10 months. Imperial has a nominal interest in a test well targeting exactly the same formation The test well came onto production in November 2011 and has achieved flow rates in excess of 360 barrels of oil and 850 McF of gas per day. After predicted initial production declines, flow rates continue to be strong with daily production averaging in excess of 150 barrels of oil and 650 McF of gas per day (up to the latest production receipt for February, 2012). Imperial estimates that this well will "pay out" (cover all of its drilling and completion costs) in less than 1 year. This rapid pay out is at the very end of industry performance. With its decline curve flattening, Imperial believes that the test well has the potential to produce for many years to come after pay out and this excellent performance is very relevant as to what could be achieved in the resource play within the Company's new Oklahoma AMI.