Imperial Resources Inc. and Imperial Oil and Gas, Inc. announced that a consistent, better than expected average oil cut has been achieved at its Green Tide Salt Water Disposal Facility. As announced on February 11, 2013 the oil cut recovered from water accepted for disposal, although small in percentage terms, is projected to form a material proportion of overall Green Tide revenues. At that time an oil cut of 0.25% to 0.5% was expected after optimization of the Green Tide plant, with oil sales expected to form less than half of total Green Tide revenues. The company is delighted to report that during the course of the previous calendar quarter the average oil cut recovered for sale has, on average, exceeded the maximum 0.5% expected. This, combined with firm oil prices, has led to oil sales income exceeding water disposal revenues. The company believes that the Green Tide engineering improvements have contributed significantly to this strong oil cut, but there remains a possibility that the plant also received excessively oil rich water during the first calendar quarter. The company continues to monitor and evaluate the situation. As time passes it will be more apparent as to the exact contributions of the factors that could have influenced this improvement. During the course of the first calendar quarter of 2013 the company has sold a total of 6 truck loads of oil, totaling well in excess of 1,000 barrels of oil. A further load is anticipated to be sold in early April. Oil prices remain firm. Daily average water disposal rates steadily increased month on month in the quarter, largely due to the effect of a recent extension of operating hours and the availability of additional personnel. Green Tide achieved substantial operating profitability during the quarter through the combined increase in income from both water disposal fees and oil sales. The company believes sustained profitability will build further value in its primary asset. The company also sees these results as indicative of the potential high net income Green Tide may generate if daily water disposal volumes can be further increased towards the fully permitted levels of 15,000 barrels of water per day.

Imperial Resources Inc. and Imperial Oil and Gas, Inc. announced that the second offloading bay at its Green Tide Disposal Facility (Green Tide) is now operational. The offloading bay has been immediately put into operation to handle traffic more effectively and to reduce instances of queuing. The company estimates that an average oil cut (oil recovered from the delivered disposal water) of 0.25% has been achieved to date, directly in line with expectations. This oil cut has been achieved sooner than expected despite the requirement for the formation of an oil blanket in the gun barrel tank, essential for the capture of oil, which takes time. In an on-going optimization of Green Tide, the company also expects to pursue additional initiatives to improve oil recovery; the company plans to modify the gun barrel tank and the chemical injection site to enhance oil separation and capture relative to storage time. Sales of recovered oil are expected to provide valuable revenue to Green Tide.

Imperial Resources Inc. reported consolidated unaudited earnings results for the second quarter and six months ended June 30, 2012. For the six months, the company reported interest income of PHP 4,563. Loss from operations was PHP 2,919,409 against PHP 3,380,377 a year ago. Total comprehensive loss attributable to equity holdings of the parent entity was PHP 2,890,215 or PHP 0.022 per share against PHP 3,346,573 or PHP 0.026 per share a year ago. Cash flows from operating activities were PHP 2,949,265 against PHP 3,819,947 a year ago. Increase in exploration and evaluation assets was PHP 2,559,300 against PHP 5,183,760 a year ago. For the quarter, the company reported interest income of PHP 2,959. Loss from operations was PHP 1,415,485 against PHP 1,645,280 a year ago. Total comprehensive loss attributable to equity holdings of the parent entity was PHP 1,401,330 or PHP 0.010 per share against PHP 1,628,827 or PHP 0.013 per share a year ago.