Press Release Source: Royal Quantum Group, Inc.
Royal Quantum Plans Drilling in Oklahoma
Wednesday March 18, 1:03 pm ET
CALGARY, AB--(MARKET WIRE)--Mar 18, 2009 -- Royal Quantum Group, Inc. (OTC BB:RYQG.OB - News) (the "Company") intends to complete a funding of up to USD $1 million through the issuance of up to 400 units at a price of USD $2,500 per unit ("Unit"). The funds will be used for participation in the drilling of up to three wells for oil & gas in the state of Oklahoma. Each Unit consists of 5,000 restricted common shares of the Company and will pay a dividend to the unit holder on a portion of the revenue received from the wells. In addition, each unit will carry an option to purchase shares in the Company at $0.25 per share for a period of 18 months. Drilling is expected to commence in April.
The prospect is located on the Nemaha Ridge in north central Oklahoma approximately 8 miles southwest of the city of Perry. The Nemaha Ridge is characterized by multiple pay zones at relatively shallow depths. The company's prospect has potential for hydrocarbon production from eight zones. The main objective of the prospect is the Lower Skinner Sandstone with numerous secondary potential pay zones. Production from Lower Skinner Sandstone is well documented in the prospect area, the more notable being the South Gansel Field. The South Gansel Field began production in 1957 and lies approximately 2.5 miles to the northeast of the prospect acreage. Cumulative production from the Lower Skinner Sandstone in the South Gansel Field is over 1.25 million barrels of oil. Provided a successful completion is achieved a number of offset wells could be drilled.
Management will continue to review additional opportunities for participation in the drilling of oil and gas wells in the area with the intention of building a strong cash flow operation.
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.
Contact:
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
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Source: Royal Quantum Group, Inc.
