2008-06-23 15:24 ET - News Release
CALGARY, AB -- (MARKET WIRE) -- 06/23/08
Royal Quantum Group, Inc. (OTCBB: RYQG) -- The company is pleased to update its Shareholders on recent developments relating to its acquisition of the Ohio Oil and Gas property.
The land owner has granted the company an extension on the closing date of the Ohio Oil & Gas project to July 31, 2008 to allow for the completion of an updated lenders reserve report and final legal documents. The 6,000+ acre property located in eastern Ohio includes 171 producing wells and lies within the emerging Marcellus Shale play of the Appalachian region. The Marcellus shale runs from the southern tier of New York, through the western portion of Pennsylvania into the eastern half of Ohio and through West Virginia.
As per the terms of the extension, the company has paid a non refundable cash deposit to the land owner which includes a commitment to re-work up to 6 wells on the property. The funds to satisfy the requirements of the extension were generated from a loan to the company by a private lender in the amount of $500,000. The company has retained the services of an independent third party engineering firm to update the Geological Asset Appraisal Report dated June 2007 and is working closely with them to ensure timely completion. This will be the second review of the original report, which is a condition required by the lending institution prior to the release of funds for the closing of the acquisition. The report will focus on the change in economics due to the increase in oil and gas prices since the original report was first written in June of 2007.
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.
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
