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. Last Updated: 07/27/2016

Imperial Stock Up on Reserves Approval

Shares in Russia-focused oil and gas explorer Imperial Energy jumped 15 percent Wednesday on news that a Russian regulator has confirmed reserves for its new field in west Siberia.

London-listed Imperial Energy has recently been accused by the Natural Resources Ministry of inflating estimates of reserve amounts.

Imperial has rejected the accusations.

In a statement Wednesday, Imperial said the State Reserves Committee, a commission responsible for monitoring reserves of natural resources and their exploration, had approved reserves for its Sredneglukhovskoye field in the Tomsk region.

"The State Reserves Committee has now confirmed and approved Russian C1 category reserves of 451,000 tons and C2 category reserves of 4,563,000 tons making an aggregate of Imperial's C1 and C2 reserves equivalent to 39.7 million barrels," Imperial Energy said.

The company also said it would apply for a commercial license for the field later this year.

Imperial said the 39.7 million barrels under reserve classification accepted in Russia was higher compared with an earlier estimate for the Sredneglukhovskoye field by auditors DeGolyer and MacNaughton of 25 million barrels SPE 2P reserves.

"This is further evidence of the clear and deliverable step-by-step increase in our Russian registered reserves and the progressive narrowing of the gap between those and our existing SPE reserves," said Imperial Energy's chairman, Peter Levine.

"Following the registration of reserves on the Golovnoye field, this is yet another definite pointer to the future which supports and underlines the credibility and integrity of our assets," he said.