16FebIMPERIAL PETROLEUM INC Files SEC form 8-K, Completion of Acquisition or Disposition of Assets
16-Feb-2012
Completion of Acquisition or Disposition of Assets
ITEM 2.01 COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS
On February 14, 2012 Imperial Petroleum, Inc. (the “Company”) closed an Asset Purchase Agreement (the “Agreement”) with Eleven Energy Corporation, which finalized the sale of its share of the ownership of the Coquille Bay Field located in Plaquemines Parish, Louisiana. Per the terms of the Agreement, the Company received consideration of $100 cash, and other consideration as set forth in the Agreement, including the assumption of plugging liabilities and the requirement of a bond with the State of Louisiana Department of Natural Resources.
Included in the terms of the Agreement was the sale of 100% of the equity of Hillside Oil and Gas, an Approved Operator which had been operating the Coquille Bay facility as a contract operator for the Company. Prior to the Agreement, Hillside Oil and Gas was owned by Greg Thagard, a member of the Company’s Board of Directors. In consideration for the sale of Hillside Oil and Gas, Mr. Thagard received $100.00.
In determining the amount of consideration to accept, the Company reviewed the current operating costs of maintaining the assets and the estimated costs associated with returning the assets to an acceptable, operational status. The monthly cost of maintaining the assets totaled approximately $60,000. An independent third party estimated the costs of restoring the assets to a level necessary to continue production at approximately $750,000 to $1,000,000.
As a result of this Agreement, the Company will no longer have any business operations related to traditional oil and gas exploration and production.
ITEM 9.01 EXHIBITS
(d) Exhibits
Exhibit
Number Description of Exhibit
Exhibit 99.1 Press Release
Exhibit 99.2 Asset Purchase Agreement
