California Discoveries Lead to Opportunity
Royale Energy, Inc. (NASDAQ: ROYL) earned $1,540,924 or 19 cents per
share in “Cash flow from Operations” for year end 2008, bolstered by
discoveries in California. While investing heavily in the development of
new opportunities, the company continued to add reserves from drilling
and cash flow from its core area of operation in California's Sacramento
Basin.
The capital requirements used in development of Texas Gulf Coast and
Rocky Mountain operations were most affected by the sharp decline in the
broader energy markets. With oil & natural gas prices falling by over
70% from mid 2008, many companies including Royale, adjusted the cost
basis of their assets. The non-cash impairment charges of $15,691,348
resulted in a net loss of $8,777,614. Total revenue for the year ended
2008, rose to $19,174,114 from $16,557,399 in 2007 or 15.8%.
Stephen Hosmer said, “The industry today is reminiscent of 1986 when the
company was founded. In challenging times opportunities abound.
Investment decisions on the use of capital must be carefully weighed to
correctly position the company for future growth.”
Royale will continue to focus investment in areas such as the Sacramento
Basin Lonestar Field, where the company drilled 3 wells and increased
production by 7.5% in 2008. Plans for 2009 include the drilling of 7 new
wells in the field.
About Royale Energy
Headquartered in San Diego, Royale Energy, Inc. is an independent energy
company. The company is focused on development, acquisition,
exploration, and production of natural gas and oil in California, Texas
and the Rocky Mountains. It has been a leading independent producer of
oil and natural gas for over 20 years. The company's strength is
continually reaffirmed by investors who participate in funding over 50%
of the company's new projects. Additional information about Royale
Energy, Inc. is available on its web site at www.royl.com.
Forward-Looking Statements
In addition to historical information contained herein, this news
release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, subject to various
risks and uncertainties that could cause the company's actual results to
differ materially from those in the "forward-looking" statements. While
the company believes its forward-looking statements are based upon
reasonable assumptions, there are factors that are difficult to predict
and that are influenced by economic and other conditions beyond the
company's control. Investors are directed to consider such risks and
other uncertainties discussed in documents filed by the company with the
Securities and Exchange Commission.
Royale Energy, Inc.
Chanda Idano
Director of Marketing
& PR for Royale Energy, Inc.
619-881-2800
chanda@royl.com
http://www.royl.com
