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

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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.”