(Source: Business Wire)
During this period of sustained economic downturn, Royale Energy, Inc. (NASDAQ:ROYL) anticipated and acted on the need for cost containment. These measures resulted in a 13.6% reduction in total expenses for first quarter 2009 compared to the same period in 2008. A net loss of $891,056 was an improvement over the loss of $927,460 a year ago.
"While the industry saw a 70% drop in product prices, we experienced only a 51% decline in oil & gas revenue," notes Stephen Hosmer. "The cost containment measures that we began in 2nd quarter 2008 resulted in an improvement in our operating margins, positioning us to capitalize on the emerging market recovery later 2009."
As noted in the latest Operational Update, Royale's plans for upcoming activity have the potential to more than double production in time for sale into the expected improved price environment.
"As we have experienced from our 23 year history, we have always been able to act upon the opportunity during the low point of market cycles," Don Hosmer points out. "The lower current drilling cost presents ideal timing to develop our inventory of quality drilling prospects."
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.
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