SOURCE: Royalite Petroleum Company Inc.

March 15, 2007 08:00 ET

Royalite Petroleum Company Inc. Spuds Initial Utah Hingeline Well

Royalite State 16-1 Well Update

AUSTIN, TX -- (MARKET WIRE) -- March 15, 2007 -- Royalite Petroleum Company Inc. (OTCBB: RYPE) has commenced drilling a Jurassic Navajo wildcat well in northern Piute County, Utah. The Company has moved in DHS Rig #11 and has spud the Royalite State 16-1 well located in the SE/4SW/4 of Section 16, T-28-S, R-3-W, Piute Co., Utah. The well is a projected 8,000 ft. Jurassic Navajo and Permian Kaibab test. The estimated time to drill and test the well is 35 days.

Oil and gas exploration has been extremely sparse in Piute Co., Utah. To date, there have been only two oil and gas exploration wells drilled with both wells located within two miles of the southern border of the county.

The closest well to the Royalite State 16-1 was drilled 14 miles to the south in 1984 by ARCO Exploration Company. The Rocky Ford #1 well was located in Section 27, T-30-S, R-3-W, Piute Co., Utah. The well encountered an estimated 1,287 ft. of Jurassic Navajo Sandstone beginning at a depth of 5,269 ft. and drilled into the Permian Kaibab formation at a depth of 8,938 ft. ARCO cored a Kaibab interval from 8,999 ft. to 9,008 ft. that did not contain any hydrocarbons. No tests were conducted in the Jurassic Navajo formation according to the Utah Division of Oil, Gas and Mining records. The well was subsequently plugged and abandoned.

The Royalite State 16-1 is the Company's first well to commence its exploration program in northern Piute County. The primary objectives of this tight hole are the Jurassic Twin Creek and Navajo formations and the secondary target is the Permian Kaibab formation. The well is being drilled along the Gunnison fault in the newly discovered central Utah Hingeline trend. The closest production is approximately 28 miles to the northeast of the prospect in the Covenant field discovered in late 2004 by Wolverine Gas and Oil Corp. The 830 acre Covenant field is currently producing at restricted rates of approximately 7,000 barrels of oil per day. The ten active wells in the field are producing from a thick Jurassic Navajo sandstone.

ROYALITE PERMITTING NEW ROYALITE FEDERAL 27-1 WELL

The Company has filed for a second drilling permit with the Utah Division of Oil, Gas and Mining. The Royalite Federal 27-1 well is located two miles southeast of the city of Marysvale in the NE/4NE/4 of Section 27, T-27-S, R-3-W, Piute Co., Utah. The 8,500 ft. exploratory well will test the Jurassic Navajo formation as its primary target at an estimated depth of 5,300 ft.

Royalite Petroleum Company Inc. is a publicly traded oil and gas exploration company focused exclusively within 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 obtain additional financing in the future. 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
    President
    (512) 402-0910 (direct)
    e-mail : Email Contact