Imperial Resources Raising Up To $3M

By Austin Business Journal

Imperial Resources Inc. has signed a deal with a sole investor to raise up to $3 million.

The Austin-based oil and gas company is in the midst of preparing for growth and will use the funds to lease land in a low-risk exploration project. The securities purchase agreement deal will initially raise about $500,000 through the subscription of stock with a discounted 68 cents per share price.

The unnamed investor will be issued about 737,041 new shares of common stock, with the potential of up to another $2.5 million worth by Dec. 31.

â¿¿I am delighted that we have conducted this placing, which allows us to immediately get on with our leasing acreage in our Oklahoma Prospect," CEO Robert Durbin said.

The deal follows a previously-announced $900,000 debt conversion. Through its subsidiary Imperial and Oil and Gas Inc., the company entered a letter of intent with debtor Coach Capital LLC to extinguish debt in exchange for shares. It was the company's only debt.

Imperial said the shares are expected to jump in value following a strategic growth plan announced Nov. 24. The company used the money to buy working interest in a producing Texas gas well and exploration site.

Imperial has built a substantial portfolio of low-risk, onshore oil and gas assets. Just before Christmas, the company signed a deal for a 35-acre mineral lease in North Texas. Officials said the property is low risk and has promising conditions for rapid payback.

Copyright 2011 American City Business Journals

http://www.bizjournals.com/austin/news/2011/01/03/imperial-resources-raising-up-to-3m.html?ana=thestreet

Copyright bizjournals.com 2010

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