(Source: Business Wire)
Royale Energy, Inc. (NASDAQ: ROYL), today announced that since the onset of economic downturn in 2008, it has continued to adjust to the current market cycle. These belt tightening moves have resulted in an improvement of the company's net-loss from $891,056 to $294,731, a 66.9% improvement from first quarter 2009.
ROYALE ENERGY, INC. STATEMENTS OF OPERATIONS Three Months Ended June 30, Six Months Ended June 30, 2009 2008 2009 2008 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Revenues: Sale of Oil and Gas $ 622,928 $ 2,373,783 $ 1,461,505 $ 4,090,175 Turnkey drilling 518,907 2,156,440 1,809,374 3,252,636 Supervisory Fees and Other 158,560 180,344 297,686 358,013 Total Revenues 1,300,395 4,710,567 3,568,565 7,700,824 Costs and Expenses: General and Administrative 867,901 1,033,349 1,787,548 2,024,553 Turnkey Drilling and Development -334,150 83,896 886,544 1,078,582 Lease Operating 332,934 587,612 779,872 1,271,674 Lease Impairment 15,359 50,104 15,359 50,104 Legal and Accounting 161,908 474,134 528,419 1,005,784 Marketing 168,313 311,526 381,020 539,020 Depreciation, Depletion and Amortization 515,349 950,881 1,058,124 1,805,725 Total Costs and Expenses 1,727,614 3,491,502 5,436,886 7,775,442 Loss on Sale of assets -33,482 0 -33,482 -27,823 Income (Loss) From Operations -460,701 1,219,065 -1,901,803 -102,441 Other Expense: Interest expense 22,135 66,686 41,096 150,109 Income Before Income Tax Expense -482,836 1,152,379 -1,942,899 -252,550 Income tax provision -188,105 392,149 -757,112 -85,320 Net Income (Loss) ($294,731 ) $ 760,230 ($1,185,787 ) ($167,230 ) Diluted Earnings Per Share ($0.03 ) $ 0.09 ($0.14 ) ($0.02 ) Basic Earnings Per Share ($0.03 ) $ 0.09 ($0.14 ) ($0.02 ) Other Comprehensive Income Unrealized Gain (Loss) on Equity Securities $ 110,855 $ 0 $ 141,869 $ 0 Less: Reclassification Adjustment for Losses (Gains) Included in Net Income 28,648 0 28,648 0 Other Comprehensive Income (Loss), before tax 82,207 0 113,221 0 Income Tax Expense (Benefit) Related to Items of Other Comprehensive Income 31,978 0 45,666 0 Other Comprehensive Income, net of tax 50,229 0 67,555 0 Comprehensive Income (Loss) ($244,502 ) $ 760,230 ($1,118,232 ) ($167,230 ) -------------------------------------------------------------------------------
Royale's reduced costs allowed it to minimize shareholder dilution while increasing its working capital.
The Company is now on track to expand drilling in its core areas of the Sacramento Basin in California. Royale expects this to add low cost reserves of a valuable commodity to be produced out over many years.
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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