As promised to you THX, the management of IMP have responded to...

As promised to you THX, the management of IMP have responded to my email of questions ...just this moment.

Here below is what IMP has to say:

"Few comments as per discussion below. All are derived from publically available info:

1. Debt – IMP has approx $4.5m in debt and $4.25m in Con Notes

2. The $4.5m in debt relates to BMX shares currently valued at around $14.5m under current BMX takeover.

3. The $4.25m in Con Notes relates to (i) development of Carrolltown JV with 15 operating wells; and (ii) a 75% shareholding in Empire Energy which acquired and now operates 130 wells, drilling rig, dirt moving equipment (for building locations etc), pipe laying equipment and other gas well servicing equipment. Total cost US$9.35m.

4. Con Notes are held by existing long term IMP shareholders.

5. Empire Energy has the US$100m credit facility with Macq Bank. This is or will be utilised for acquisitions (production and 1P reserves) and development drilling. Currently undertaking an 18 well drilling program.

6. The Macq Bank credit facility is a typical energy lending facility, in two components, one at a cheaper margin to fund production and the second at a slightly higher margin to fund development and other opportunities. Specific lending criteria are defined, which are common for facilities of this nature.

7. All future IMP USA operations will be through Empire

8. All Empire leases are within a few metres of existing pipelines. Usually takes around 60 days from the commencement of drilling until a well is on line.

9. Around 60% of Empire gas is hedged at around US$8.20 / Mcf, the remainder is at spot prices. Empire policy is to hedge around 60% to 80% of production. Currently have around 50 locations for drilling so will continue a hedging program.

10. To date IMP/Empire has drilled 23 wells, all commercial.

In essence the difference between IMP and EGO is significant. IMP is building up production and the strategy is to buy 1P assets and utilise the Macq Bank facility to develop low risk wells in areas where there is easy access to existing pipelines.

EGO appears to be staking acreage and having someone spend money wild-catting.

Only time will tell on who performs the best.

Hope this answers your questions."

END OF QUOTE

Now ...how good is that!!!

Heh heh,
Mr Muzz