SOURCE: Royal Quantum Group, Inc.

October 19, 2009 13:37 ET

Royal Quantum Update to Shareholders

CALGARY, AB--(Marketwire - October 19, 2009) - Royal Quantum Group, Inc. (OTCBB: RYQG) (the "Company") intends to complete a funding of up to USD $200,000 through the issuance of up to 80 units at a price of USD $2,500 per unit ("Unit"). The funds will be used for participation in the drilling of an oil & gas well in the state of Oklahoma. Each Unit consists of 10,000 restricted common shares of the Company and will pay a dividend to the unit holder on a portion of the revenue received from the well. In addition, each unit will carry an option to purchase shares in the Company at $0.25 per share for a period of 18 months. Drilling is expected to commence in November.

The prospect is located on the Nemaha Ridge in north central Oklahoma approximately 1.5 miles north of the town of Lucien. The Nemaha Ridge is characterized by multiple pay zones at relatively shallow depths. The main objectives of the prospect are the 1st Wilcox Sandstone and the Crews Sandstone. A drill depth of 5500 ft would be required for production of the 1st Wilcox Sandstone. Secondary zones include the Mississippi Limestone Chat, Simpson Dolomite, Misener Sandstone, Red Fork Sandstone, Skinner Sandstone, Oswego Limestone and several "shallow" formations, which produce in the immediate area, and all have strong possibilities. There are at least ten different formations productive in the prospect area. This location is interpreted to have the potential to exceed 80,000 BO (Barrels of Oil) recoverable, plus associated gas valued at 20 to 30 percent of oil reserves.

The Gleason #4-16 well has now been completed and is on production at a rate of 6 barrels per day plus associated gas at 10McF per day. Management considers this well a success as it provides a stream of cash flow. The company has a 36% working interest in this well.

Royal Quantum is a North American-based exploration and development Company, focusing on the acquisition and development of cash flow or near term cash flow producing properties in the resource sector. Royal Quantum is a fully reporting public company trading on the OTCBB market under the symbol RYQG.

Statements released by Royal Quantum Group, Inc. that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, including statements regarding the company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the company's business prospects and performance. The company's actual results could differ materially from those in such forward-looking statements. Risk factors include but are not limited to general economic, competitive, governmental, and technological factors as discussed in the company's filings with the SEC on Forms 10-K, 10-Q, and 8-K. The company does not undertake any responsibility to update the forward-looking statements contained in this release.

Visit the Royal Quantum Group, Inc. web site at www.royalquantum.com. Information included on the Company's website is not incorporated herein by reference or otherwise.

Contact Information

  • For additional information please contact:

    Royal Quantum Group, Inc.
    Suite # 145, 251 Midpark Blvd S.E.
    Calgary, AB T2X 1S3
    Tel: 403-288-4321
    Fax: 403-201-5792