Royal Quantum Group today updated its shareholders on recent developments regarding its acquisition of the Ohio oil and gas property. The 6,000+ acre property lies within the emerging Marcellus Shale play of the Appalachian region in Eastern Ohio, and includes 171 producing wells.
In order to allow the completion of an updated lender’s reserve report and final legal documents, the landowner has extended the closing date of the Ohio oil and gas project to July 31, 2008. In adherence to the terms of the extension, Royal Quantum Group has paid a non-refundable cash deposit to the landowner, including a pledge to re-work up to 6 wells on the property.
Royal Quantum Group stated that it has retained the services of an independent, third-party engineering firm to update the Geological Asset Appraisal Report dated June, 2007, and is working towards seeing a timely completion. The updated report will accommodate the increased prices for oil and gas from the time when the original report was first written.
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