imp 4th well success. news of 5th well due

IMP Announced its 4th successful Natural Gas well last Monday 16 June, which the Market missed, due to being distracted by Wall Street's Friday fall in the DOW.

It also missed the fact that IMP has spudded in its 5th Well in this current program of 18 wells ...and we expect news of its success either this Friday or early next week.

Now ...What say you to this reasoning?

The normal gas flow ...as we have seen again from the logging tests of IMP’s successful gas well No.1 this time around is 900Mcfgd.

The last 20 successful wells were also around this same 900Mcfgd figure, so i expect that the results from the very recent other 3 (so far) successful wells will produce similar 900mcfgd flow rates.

We are currently 4 successful wells in this current 18 well drilling program and No.5 well spudded in last Monday 16 June.

IMP’s high speed drill can go down to the usual 3,000+ft in just a few days …so we are expecting news either very late this week or early next week.

Now of course these wells go for 40 years on average, so IMP caps them back (based on previous announcements) to a gas flow rate at 55Mcfgd (ie; 55,000 cubic feet per day per Natural Gas Well).

Currently IMP has about 60% of their 168 commercial wells hedged at $8.45 per Mcf.

That leaves 40% of their wells to enjoy the higher spot market prices, now being achieved.

Gas prices have risen to $12+ just lately in North East USA.

So, if we worked on say $10per Mcf at 55Mcfgd that would be $550 per day for each gas well.

That translates into a $$$return of $550 x 172 (168 current wells + 4 new wells) = $94,600 per day ...or $34,552,650 per year.

Also IMP gains extra money from hiring out its own drilling rig and that brings in (based on previous announcements) around $500,000 per year

IMP is using its own high speed drilling rig and experienced crew ...so the previous Contractor costs of $250K per well should be reduced to say $200K, and no other royalties to the Contractor, etc,.

This low cost of drilling in 95% successful tenements is much better than the much higher costs of wildcat drilling in unproven tenements, which is what most of the Nat Gas companies are doing.

This means that the results of these current 18 wells (4 out of 4 so far 100% successful) combined with the previous 20 successful wells, combined with the 168 wells that IMP have acquired, plus the $14million windfall from sale of BMX shares ...will place IMP in increased gas-flow-cash-flow very positive territory over the next 12 months.

It also means that adding up those figures makes IMP capitalised at around $49 - $50 million.

With 1.6 billion shares on issue, that should make the share price around 0.031 cents.

Sure makes today’s share prices of 0.019- 0.02 cents look like a bargain.

Especially when you take into account there are 14 more highly probable Natural Gas wells to be drilled during this next couple of USA Summer months.

Also, IMP has identified over 120 further drill sites on their acquired very prospective tenements, and have the help of Macquarie Banks $100million line of credit to smooth the speed with which these wells can also be added to the IMP stable.

The other wildcard icing on the cake is that IMP (according to the past 12 months of announcements) are closing in on some other very worthwhile acquisitions of Gas companies in the high energy demand North East of the USA.

These are likely to be announced within the next couple of months.

Warm regards,
Mr Muzz