Imperial Petroleum buys more wells in La.

EVANSVILLE, Ind., Nov. 5 (UPI) -- Indiana-based Imperial Petroleum Inc. announced it signed a letter of intent to acquire oil wells in Louisiana with estimated reserves of 200,000 barrels.

Imperial announced the stock-and-cash deal with an undisclosed seller includes the acquisition of roughly 20 oil wells located in Louisiana.

Jeffrey Wilson, president of Imperial, said his company would need to spend roughly $550,000 to boost productivity at the oil wells.

"We will need to raise the development capital or leverage our existing production in order to fund the project, however, we believe that purchasing oil reserves at around $3.38 per barrel in today's environment is an excellent acquisition," he said.

Imperial under the terms of the deal pays the seller $350,000 under a sale secured by stocks.

The company engages in natural gas and crude oil exploration and production in Louisiana and Texas.