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Imperial Resources (OTCBB: IPRC) $1.14. Announced yesterday that 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.
Fannie Mae (OTCBB: FNMA) $0.56. Announced yesterday the introduction of Fannie Mae Guaranteed Multifamily Structures, or Fannie Mae GeMS, an expanded multifamily mortgage-backed securities (MBS) execution that will include DUS Megas, DUS REMICs and syndicated DUS Megas. Syndicated Mega deals will be managed by broker-dealers and offered in issuance sizes similar to DUS REMIC transactions. This expansion builds on Fannie Mae's successful DUS REMIC issuances, providing additional Fannie Mae GeMS products with similar features and liquidity. Fannie Mae's suite of multifamily MBS products helps to provide a continuous source of stable funding to support the nation's rental housing market.
"Fannie Mae is a leading provider of capital and liquidity for affordable workforce rental housing, and our role is more important now than ever," said Kenneth J. Bacon, Executive Vice President, Multifamily Mortgage Business. "When many financial institutions pulled out of the multifamily financing market during the financial crisis, we stayed and increased our participation to help keep credit flowing."
"The introduction of Fannie Mae GeMS syndicated Mega offerings supports our commitment to provide transparency, consistency and liquidity to multifamily investors in the fixed-income markets," said Kimberly H. Johnson, Vice President, Capital Markets.
Fannie Mae GeMS securities expand the MBS products already offered within Fannie Mae's Multifamily DUS program. Fannie Mae revitalized its multifamily MBS program in 2009, increasing issuance and using the company's portfolio to enhance liquidity for multifamily MBS products.
In addition to $16.4 billion of DUS MBS, Fannie Mae also issued $4.8 billion of DUS structured securities in 2010. The structured products offerings continue to expand under the Fannie Mae GeMS umbrella. There were two Floater/Inverse Interest-Only REMIC structures issued in 2010, a first for Fannie Mae multifamily collateral. Other new structures are expected to join the roster of multifamily structured product offerings in 2011.
What They Do: Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market.
Strategic American Oil Corporation (OTCBB: SGCA) $0.19. Today announced that it has rescheduled the closing of the recently executed Purchase & Sale Agreement to acquire a private Texas oil and gas Company, which owns and operates producing oil and natural gas properties and related facilities located in Galveston Bay, Texas for $9.9 million.
The transaction is subject to completion of financing, as well as customary closing conditions and adjustments. The effective date for the purchase is Jan. 1, 2011, with closing now anticipated to be Feb. 2, 2011.
What They Do: Strategic American Oil Corporation (OTCBB:SGCA) is a growth stage oil and natural gas exploration and production company with operations in Texas, Louisiana, and Illinois.
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