Rus News Journal

“ Imperial “ prospects

Imperial Energy declared losses

the Oil and gas company Imperial Energy working in the Tomsk region and Kazakhstan, has published the first accounting reporting on MSFO for 2006. Following the results of a year the company which has shaken the market by the message on sharp increase of own petrostocks, has shown dead loss. However, analysts explain it investments into investigation and an estimation and recommend to buy its papers.

in the end of March Russian - the British holding Imperial Energy (IE) has informed that according to estimation DeGolyer and MacNaugh­ ton stocks of the company of 15 basic deposits in the Tomsk region on a category 2P have grown on 150 %, to 802,6 million barr., 1P - to 159,3 million barr., 3P - to 3,372 mlrd barr. The head of the company Peter Livajn asserts that the gain was provided with realisation of the program of prospecting drilling, and also revision of current stocks. “ Now we should concentrate on extraction and realisation of these stocks “ - he has added. Results of work DeGolyer and MacNaugh­­ ton have induced a number of citizens of the Tomsk region to write the reference to the State Duma with the requirement to check up conclusions of auditors.

IE did not begin to make comments on prospect of deputy check. But one of these days the company has published the reporting on MSFO for 2006 which can testify to the validity of the sizes of stocks of oil. Following the results of a year dead loss IE has made 14,47 million dollars, essentially having exceeded forecasts of analysts. In particular, IK “ the Three Dialogue “ promised this indicator slightly more low - 9,69 million dollars Experts explain absence have arrived investments to geoinvestigation and an estimation of stocks, and also smaller, than it was expected, volume of a gain and higher administrative costs. Also the company has lost on falling of the prices for oil. The growth of commodity stocks reflected in balance IE has made 148 %, from 6,94 million dollars In January - June, 2006 to 17,23 million dollars it is probable, the part the extracted company of oil remained on its balance in the form of commodity stocks, possibly, with calculation to realise them at higher prices in January-June, 2007.

according to analysts IK “ Aton “ IE shows good prospects, despite a loss. Manufacture on six new chinks has increased by the end of the year to 2,5 thousand barr. A day, the gain has made 3 million dollars - basically from realisation of the oil received during test extraction. Experts “ Atona “ warn, as following the results of 2007 the profit at IE can not appear. In April the company has involved the credit for 200 million dollars at ABN Amro Bank N V., means plans to spend for arrangement of deposits and building of pipelines for access to system AK “ Transneft “. Earlier Peter Livajn declared that by the end of 2007 IE intends to increase volume of output from present 2,5 thousand barr. A day to 10 thousand

However, some experts do not exclude that after 2008 IE will continue to occupy means. According to analyst Bridgewell Group of Nejtana Pajpera, at the company practically is not present spare cash (its gross output small, in comparison with large oil industry workers), term of working out of a deposit on the average makes about 20 years so money IE still will be necessary.

nevertheless recommendations about securities IE remain at former optimistical level: to buy. “ the predicted price of actions Imperial Energy for the end of 2007 will make 42,3 dollars for the action that on 10 % below the previous level (46,8 dollars), but on 44 % above current market quotations “ - the analyst " promises; Atona “ artem Deaths. “ financial indicators IE can sharply improve after the beginning of industrial extraction “ - the analyst of Alpha bank Konstantin Batunin agrees.