SOURCE: Royalite Petroleum Company Inc.

May 03, 2007 09:15 ET

Royalite Petroleum Company Inc. Well Update

BLAINE, WA -- (MARKET WIRE) -- May 3, 2007 -- Royalite Petroleum Company Inc. (OTCBB: RYPE) has stopped the initial phase of exploratory drilling on its Royalite State 16-1 above the Navajo sandstone formation because the drilling capacity of the current rig has been exceeded. The Company has contracted with Halliburton Logging Services to run logs on the well. DHS Drilling Co., a subsidiary of Delta Petroleum Corp., has successfully drilled to the weight capacity of DHS Rig #11. Royalite intends to, as soon as possible, transition to a larger rig for drilling deeper into the targeted Lower Jurassic Navajo formation. The Company estimates the top of the Navajo sands to be less than 500 ft. below the well's current depth. The geological data gathered on Royalite's initial exploratory wells will assist the Company to more accurately interpret acquired seismic data in northern Piute County and map the structural traps that the Company believes may contain other giant oil fields like the prolific Covenant field discovered in 2004.

Royalite is currently designing a ten well drilling program to be conducted over the next two years with other industry partners. The first well of the program will be the newly permitted Royalite 27-1 well, of which a permit to drill was issued on March 28, 2007 by the Utah Division of Oil, Gas and Mining. The well is located 660 ft. FNL and 1,198 ft. FEL of Section 27, T-27-S, R-3-W, S.L.B. & M, Piute Co., Utah. The well is six miles to the north of the Royalite State 16-1 well location. The Company intends to drill this newly permitted well immediately after reentering and drilling the Royalite State 16-1 well.

Royalite is expanding its exploration personnel to design and implement their future geophysical programs. The newly formed team will be responsible for acquiring seismic, magnetic and gravity surveys on the Company's large acreage blocks in northern Piute County and on four additional lease blocks located in Sanpete, Iron and southern Piute Counties. Royalite has approximately 70,000 acres under long term leases in the central Utah Hingeline trend.

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.

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 decision to suspend operations at any time. 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)