SOURCE: Royalite Petroleum Company Inc.

May 22, 2007 12:11 ET

Royalite Petroleum Company Inc. Reports Initial Well Analysis

BLAINE, WA -- (MARKET WIRE) -- May 22, 2007 --Royalite Petroleum Company Inc. (OTCBB: RYPE) has completed logging on its first exploration well located in Piute Co., Utah after drilling through Middle Jurassic sands above the targeted Lower Jurassic Navajo formation. The Royalite State 16-1 well logs show neutron-density crossover effects in several Middle Jurassic sandstones indicating gas saturation. An analysis of the resistivity log shows prospective zones with high deep resitivity indicative of potential hydrocarbon formations. No cores or formation tests were made during the initial phase of exploration drilling on the well. The Company will continue to determine if any of the prospective sand intervals contain commercial quantities of gas.

Royalite penetrated in excess of 500 ft. of a Lower Middle Jurassic sandstone before suspending operations due to limited rig capacity. This quartzitic, tight gas sandstone formation generally exhibited a low porosity. However, the density-neutron log indicated crossover gas effect covering 48 net (164 gross) feet in the contiguous sand. Density porosities in the crossover intervals range from 4% to 19% with an average density porosity of 9%. The Company divided the sands with crossover gas effect into three sections and reported average density porosities of 9.5% (upper 22 net ft.), 11.3% (middle 6 net ft.) and 7.4% (lower 20 net ft.).

The indication of tight gas sands in the Royalite State 16-1 well increases the potential for Royalite to discover gas in commercial quantities on its large lease block in northern Piute County. "We are encouraged by the initial results from our first exploratory well in this area since it is generally recognized that hydrocarbons trapped in Jurassic intervals within the Utah Hingeline have originated and migrated up faults from deeper source rocks," stated Michael Cass, President of Royalite. The Company believes the Lower Jurassic Navajo formation should exhibit superior porosity and permeability as compared to the Middle Jurassic sands penetrated to date and could provide more favorable reservoirs for commercial production of hydrocarbons, especially natural gas.

Royalite is moving a rig, as soon as possible, to the Royalite State 16-1 that is capable of drilling 16,000 ft. through the Permian to test the deeper Jurassic Navajo and Permian Kaibab formations. The Company will also drill the Royalite Federal 27-1 that has been recently permitted to test the Lower Jurassic Navajo formation. Royalite plans to acquire seismic surveys in Piute and Iron counties in the fall of this year and begin exploring other prospective core areas the Company currently has under lease.

Royalite Petroleum Company Inc. is a publicly traded oil and gas exploration company focused exclusively within the central Utah Hingeline trend. The Company currently owns 100% working interest (87.5% NRI) in all of its leasehold acreage and has approximately 70,000 acres under long term leases in the central Utah Hingeline trend.

Forward-Looking Statements

Statements contained herein that are not historical facts may be forward-looking statements within the meaning of the Securities Act of 1933, as amended. Forward-looking statements include statements regarding the intent, belief or current expectations of the Company and its management. Such statements reflect management's current views, are based on certain assumptions and involve risks and uncertainties. Actual results, events, or performance may differ materially from the above forward-looking statements due to a number of important factors, and will be dependent upon a variety of factors, including, but not limited to Royalite Petroleum Company's ability to raise addition capital and secure suitable drilling rigs capable of drilling to the Company's objectives. Royalite Petroleum Company undertakes no obligation to publicly update these forward-looking statements to reflect events or circumstances that occur after the date hereof or to reflect any change in Royalite Petroleum Company's expectations with regard to these forward-looking statements or the occurrence of unanticipated events. Factors that may impact Royalite Petroleum Company's success are more fully disclosed in Royalite Petroleum Company's most recent public filings with the U.S. Securities and Exchange Commission.

Contact Information

  • For information contact:
    Royalite Petroleum Company Inc.
    Michael Cass
    (512) 402-0910 (direct)