-Imperial Petroleum, Inc. announced today that it has agreed to purchase certain oil and gas assets from Apollo Resources International, Inc. and related subsidiaries located in the four corners area of the United States. Under the terms of the agreement, Imperial will pay Apollo $2.5 million in cash and assume scheduled liabilities of not more than $3.8 million and issue 5 million shares of Imperial's restricted common stock to Apollo. Imperial will become responsible for certain bonding requirements of Apollo affecting the assets and for future payment of certain pipeline rights-of-way affecting the properties. Closing is scheduled for August 1, 2007 and is subject to the normal due diligence requirements.
Jeffrey T. Wilson, President of Imperial said of the sale, "The Apollo purchase will more than double our net production and reserves and will increase our Company's mix of oil reserves. We expect to fund the acquisition through our existing line of credit."
Imperial is an oil and natural gas exploration and production company headquartered in Evansville, Indiana.
This press release may contain "forward-looking statements" as that term is defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties which could cause actual results to differ materially from those described herein. Although the Company believes that the expectations in such statements are reasonable, there can be no assurance that such expectations will prove to be correct.
Contact:
Imperial Petroleum, Inc.
Jeffrey T. Wilson, 812-867-1433
email: jtwilsonx1@aol.com
Source: Imperial Petroleum, Inc.
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