Imperial Energy oil production target in line

MOSCOW (Reuters) - Russia-focused Imperial Energy IEC.L will produce its target 25,000 barrels per day (bpd) by the end of this year despite a weak first half of the year, the oil firm said on Tuesday.

"Whilst the first six month production levels have... been disappointing, Imperial views with well founded confidence the prospects for material production growth in H2 2008," the London-listed firm said in a statement.

Imperial, which is due to have its annual general meeting (AGM) on Wednesday June 26, has said it would produce 35,000 bpd by the end of 2009 and 80,000 bpd by 2011.

The company also said its operating profit per barrel of oil will increase by $1.30 in 2009 as the industry absorbs the benefits from the oil tax changes.

"Imperial is currently benefiting from net backs substantially higher than envisaged at the end of 2007," it said.

Last month the government cleared a proposal to reduce the mineral extraction tax on oil, which was weighing down on oil's profitability and hampering greenfield projects.

It is expected to allow oil firms to save over $4 billion annually and invest money into new projects and growth.

(Reporting by Amie Ferris-Rotman)