SOURCE: Royalite Petroleum Company, Inc.

March 08, 2007 09:15 ET

Royalite Petroleum Company Inc. Plans to Drill Initial Utah Exploration Well

Central Utah Hingeline Projects, 100% WI - 87.5% NRI

BLAINE, WA -- (MARKET WIRE) -- March 8, 2007 -- Royalite Petroleum Company, Inc. (OTCBB: RYPE) ("Royalite") has been issued its first drilling permit to drill a 8,500 ft. exploratory well on the Royalite State 16-1 prospect located in northern Piute Co., Utah and anticipates spudding the well on or before March 12, 2007. The well is located approximately 28 miles southwest from the nearest production in the giant Covenant field located in Sevier County. The Covenant field has been reported to be the largest US onshore discovery in the past 32 years.

Royalite State 16 - 1 Well

The Company's first exploratory well is located along the Gunnison fault in the SE/4SW/4 of Section 16, T-28-S, R-3-W, Piute Co., Utah. The Royalite State 16-1 well is permitted to drill an 8,500 ft. wildcat well to test the Jurassic Navajo and Permian Kaibab formations.

The well will be drilled in an alluvium valley between two northeast to southwest faults, both down to the northwest. The prospect is located to the south of a pronounced gravity low. The gravity rapidly increases from the north of the location which suggests a possible structural high against the east fault.

There is a northeast to southwest magnetic high trend apparent through the section combined with magnetic lows in the northwest and southeast. Royalite believes this indicates a structural trap between the faults. The magnetics on this prospect are not as strong as the high magnetics covering the recently drilled Delta Petroleum's Joseph #1 well where an igneous intrusion was discovered.

The Royalite State 16-1 well is located in the south part of a large geochemical anomaly, caused by kaolinite abundance, which is also present at the Covenant field and other potential thrust fault traps found within the Utah Hingeline.

The Company is also conducting iodine geochemical surveys in northern Piute County. Iodine geochemical signatures have been indicators of oil and gas in various producing oil and gas fields.

Royalite has a 100% working interest (87.5% NRI) in all its prospects and will be the operator of the Royalite 16-1 well.

Leasehold Acquisitions

Royalite has secured long term oil and gas leases covering over 68,000 acres south of the Covenant field and has plans to increase its leasehold interests within the Utah Hingeline.

Geophysical Surveys

Royalite continues to conduct geophysical surveys in a five county area and has identified additional drilling prospects within prospective structures on the four main faults located within the central Utah Hingeline trend.

Royalite intends to commence a seismic program in Piute County, Utah during the third quarter of 2007. The program is being designed to integrate the data gathered from the wells drilled in northern Piute County during the first half of this year with the newly acquired seismic data as the Company continues to map and explore the subsurface features both east and south of the town of Marysvale located in the Sevier Valley.

Forward-Looking Statements

This Press Release may contain, in addition to historical information, forward-looking statements. These forward-looking statements are based on management's expectations and beliefs, and may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. In particular there is no assurance that Royalite State 16-1 well will contain any hydrocarbons. There is no assurance that additional exploratory wells will be drilled or that the seismic program will commence. There is no assurance that the Company will increase its leasehold interests. Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.

Contact Information

  • For more information please contact:
    Mr. Michael Cass
    Telephone (512) 402-0910 (direct)