sir eddies statement 2009 ann.report yesterday

1
Chairman’s Letter 2
Review of Operations 4
Directors’ Report 12
Auditor’s Independence Declaration 19
Independent Auditor’s Report 20
Directors’ Declaration 22
Balance Sheet 23
Income Statement 24
Cash Flow Statement 25
Statements of Changes in Equity 26
Notes to the Financial Statements 27
ASX Additional Information 54
Tenement Schedule 56
Corporate Governance Statement 57
CHAIRMANS LETTER
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Dear Shareholder,
This last year has been one of tremendous import for your Company. Not only have we weathered the substantial fall in world oil prices that accompanied the collapse in equity markets, but Impress is on track to meet the plan presented to shareholders in 2007. By year end, gross production from our “Western Oil Fairway” permits PELs 104 and 111 and PRL15 should be close to 2,000 barrels of oil a day (BOPD) and the company will have embarked on a new drilling campaign to further boost reserves and production using our newly processed 3D seismic data. Our stated aim is to increase production from the fairway to 3,000 BOPD by the end of 2011.
Hopefully the emergence of Impress as a successful independent Cooper Basin oil producer will soon be reflected in the share price!
The significant events for the year, which are covered more completely in the Annual Report which accompanies this letter are:
Impress’ share of production increased 275% to 113,328 barrels of oil compared to 30,254 barrels in 2007/08 due to the full ƒƒimpact of the Growler Field production. Revenue from oil sales increased 144% to $8,837,345 from $3,627,146 in the previous year, despite the dramatic fall in oil prices in the first half of 2009.
Completion of two successful capital raisings in combination with greatly increased production revenue has placed the company ƒƒin a strong end of year cash position with just over $7 million cash at hand. The continuing growth in cash flow from production operations at Growler and the planned future production from Snatcher now sees the Company well positioned to internally fund future foreseeable growth.
Extremely successful three well appraisal/development drilling program at the Growler Field proved good quality reservoir systems ƒƒexist in the Birkhead Formation and substantially upgraded reserves resulting in an expansion to the capacity of surface facilities.
Multi well exploration drilling program in PEL 104 and PEL 111 resulted in oil discoveries at Warhawk-1, Tigercat-1, Snatcher-1 and ƒƒSnatcher-2. The latter three discoveries will be brought on-stream in the second half of 2009, potentially boosting overall production to around 2,000 BOPD.
Expansion of the Growler surface facilities in June 2009 to 2,000 BOFD. The works included additional storage and fluid separation, ƒƒadditional water handling capacity, an upgraded oil loading facility and additional accommodation capacity.
Snatcher-2 is particularly significant as the well proved that traps in the Western Oil Fairway can have a stratigraphic component. ƒƒThe field extent is ‘open’ to the northwest.
Investment in the areally extensive Mollichuta 3D seismic survey which was specifically designed to image channel sandstones ƒƒwithin the Birkhead Formation such as those intersected by the Growler and Snatcher wells. The survey will provide a strong platform for future drilling in the Western Oil Fairway.
The Mirage and Ventura Fields, our first source of cashflow, are now at a mature stage of production from the existing wells, which ƒƒwill not recover the reserves previously ascribed to the fields. As the Joint Venture has no immediate plans for additional drilling in the near term, concentrating instead on the much more rewarding western fairway, the Board has deemed it prudent to make an impairment of $6.66 million relating to the fields which is reflected in the balance sheet.
CHAIRMANS LETTER
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Unfortunately, a recent illness has meant that I have had to step back from day-to-day involvement in the Company’s affairs. ƒƒHowever, in my temporary absence, the Board have taken a number of steps to ensure that Impress’ emergence as a significant oil producer remains on track. These include appointment of Greg Smith as Acting Chief Executive Officer and Alternate Director to me, Mr Les Longden, an existing non-executive director as Executive Director Corporate, assisting the Chief Executive Officer and a new independent director, Bernard Crawford. I believe the appointments significantly add to the expertise available to the company to help it face the challenges that will inevitably arise during our growth phase.
Greg Smith has provided technical services to Impress since the end of 2005 through his consultancy firm, Tanglin Exploration ƒƒPty Ltd, and has been extensively involved in the exploration of the western fairway. Les is a petroleum engineer and will add considerable depth to the management of the field development programs. Bernard, a Chartered Accountant, will also provide crucial support to manage the company’s commercial and financial challenges.
Finally I would like to thank our staff for their persistence in what have been difficult circumstances at times over the last twelve months. I would also like to thank you, our shareholders, for your patience and I look forward to our next twelve months with qualified optimism that you will finally see some rewards.
Yours sincerely
Eddie Smith
Chairman