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Imperial Resources (OTCBB: IPRC) $1.14. Today announced in conjunction with its wholly owned subsidiary, Imperial Oil & Gas, Inc. that it is pleased to provide an update summarizing and expanding upon recent developments. Significant progress has been made during the last few months;
Oklahoma Resource Play
Imperial has now, through its agent, commenced leasing mineral property related to the Company’s Oklahoma Resource Play prospect. This has the greatest potential, if successful, to transform Imperial’s production and reserve numbers. The Oklahoma Resource Play remains Imperial’s key focus and value driver.
As announced on December 20, 2010, Imperial will take a nominal working interest in a well in the same blanket formation. The well will use a new stimulation methodology. Assessment of the drilling results, particularly the engineering and performance of the stimulation process applied to the formation, is expected to further de-risk the Oklahoma Resource Play.
Imperial believes that the Company will benefit from a recent extension to the Gross Production Tax rebate to the calendar years 2011, 2012 & 2013 and legislation providing for a tax credit for horizontal and deep wells recently passed by the Oklahoma legislature.
Salt Water Disposal Well
Discussions are continuing toward reaching an agreement to acquire a majority participation interest in a Salt Water Disposal Well located in the heart of the Barnett Shale.
Imperial remains of the view that this exciting, low risk opportunity could provide an excellent rate of return, reliable revenues and a near term material asset uplift. Imperial is hopeful that, subject to securing necessary funds, an agreement can be reached in the near future. The Company looks forward to updating stockholders over the coming weeks.
Complementary Opportunities
Contracts for two other low risk opportunities have also been entered into;
On January 25, 2011, Imperial entered into a Farmout Agreement for the right to earn acreage by drilling infill wells (“Stateline”) in the existing Sawyer Field, in Lea County, New Mexico. Planned infill wells in the Stateline project are relatively shallow at < 5,000 feet and are expected to produce primarily oil. The Company anticipates that reserves for the Stateline wells, if successful, to comfortably exceed 30,000 BOE per well. The acreage is sufficient to accommodate 4 vertical infill wells under current 40 acre well spacing, however certain projects in Texas and New Mexico in the same formation are drilling on 20 and even 10 acre spacing. Imperial is currently conducting title review.
On January 21, 2011 Imperial announced it had entered into an agreement with the mineral owner of approximately 35 acres and an existing wellbore in Montague County, Texas. Imperial’s first choice is to re-enter the existing wellbore. If successful the well is expected to provide useful revenues, with analogous wells in the near vicinity having produced cumulative totals in excess of 17,000 barrels of oil without the benefit of modern stimulation technology. Assessment of the existing wellbore is ongoing.
Capital
Management has made excellent progress in efficiently eliminating material indebtedness in readiness for expansion and raising, at a good valuation, a first round of development capital;
On December 13, 2010, a promissory note for $900,000 and accrued interest was converted to 1,625,059 shares of common stock by agreement with the note holder. This eliminated the virtually all of material debt and transformed Imperial’s balance sheet.
On December 31, 2010 Imperial entered into a Securities Purchase Agreement for a subscription for up to $3,000,000 of Imperial’s common stock at a 15% discount to the Volume Weighted Average closing Price, with a floor price set at $0.68. As part of the agreement there was an immediate subscription for $500,000 in cash for 737,041 new shares of common stock.
Imperial, though its advisors is in discussions with a number of funding sources both in North America and Europe with a view to offering equity and/or debt instruments to attract significant financing into the Company’s low risk opportunities.
Rob Durbin, CEO, said; “Our team has made great progress in a very short time. I am confident that 2011 will be a very exciting year for Imperial and our stockholders as we look to build on these recent achievements.”
What They Do: Imperial Resources, Inc., through its wholly owned subsidiary, Imperial Oil & Gas, Inc. has a highly focused, risk-averse strategy of building a substantial portfolio of oil and gas assets through its access to niche, low risk oil and gas opportunities in the onshore U.S. Imperial aims to exploit projects which can deliver cash flows normally associated with higher risk projects but without exposure to high risk failure rates.
Rent-A-Center (Nasdaq: RCII) $29.74. Announced Monday after market close revenues and earnings for the quarter and year ended December 31, 2010. Total revenues for the quarter ended December 31, 2010, were $677.1 million, an increase of $4.2 million from total revenues of $672.9 million for the same period in the prior year. This increase in revenues was primarily due to a $5.5 million increase in rentals and fees revenue driven by the RAC Acceptance business. Same store sales for the quarter ended December 31, 2010, excluding financial services revenue, were flat.
Net earnings and net earnings per diluted share for the three months ended December 31, 2010 were $31.9 million and $0.49, respectively, as compared to $43.7 million and $0.66, respectively, for the same period in the prior year.
What They Do: Rent-A-Center currently operates approximately 3,000 company-owned stores nationwide and in Canada, Mexico and Puerto Rico.
ICU Medical (Nasdaq: ICUI) $39.06. Announced Monday after market close results for the fourth quarter and fiscal year ended December 31, 2010. Fourth quarter of 2010 revenue increased 8.3% to $75.6 million, compared to $69.8 million in the same period last year. Net income for the fourth quarter of 2010 was $10.0 million, or $0.72 per diluted share, as compared to net income of $7.4 million, or $0.50 per diluted share, for the fourth quarter of 2009.
For the fiscal year ended December 31, 2010, revenue increased 22.9% to $284.6 million, compared to $231.5 million in the same period last year. Net income for the fiscal year ended December 31, 2010, was $30.9 million, or $2.23 per diluted share, compared to net income of $26.6 million, or $1.77 per diluted shares, for the same period last year.
What They Do: ICU Medical develops, manufactures and sells innovative medical technologies used in vascular therapy, oncology, and critical care applications.
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