Royale Announces Positive Operating Income

SAN DIEGO, Oct. 28, 2015 (GLOBE NEWSWIRE) — Royale Energy, Inc. (NASDAQ:ROYL) today announced its third quarter 2015 results, in which it posted $21,372 in operating income for the three months ending September 30, 2015 despite the worst energy market in recent history.  This accomplishment overcomes a sharp decline in natural gas prices and declining production.

In response to the deterioration of the sector, Royale has been able to reduce General and Administrative expenses by over 17% from the same quarter last year, and has achieved an 11% reduction in Lease Operating expenses for the three months ending September 30, 2015 when compared to the same period in 2014.

The company is optimistic that it can overcome this phase of the industry cycle and emerge stronger and better positioned to capitalize on the future. 

“We plan to sell non-core assets and raise additional equity to provide the capital necessary to drill new wells and acquire producing properties,” said Stephen Hosmer the company’s CFO.  “This plan is expected to allow us to regain NASDAQ compliance, in the coming months, and become consistently profitable into the foreseeable future.”

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.  
STATEMENTS OF OPERATIONS  
FOR THE PERIODS ENDED SEPTEMBER 30, 2015 AND 2014  
   
    Three Months Ended September 30,     Nine Months Ended September 30,  
    2015     2014     2015     2014  
    (Unaudited)     (Unaudited)     (Unaudited)     (Unaudited)  
                         
Revenues:                        
Sale of Oil and Gas   $ 255,179     $ 507,784     $ 831,472     $ 2,077,750  
Supervisory Fees and Other     186,616       169,475       529,082       497,379  
                                 
Total Revenues     441,795       677,259       1,360,554       2,575,129  
                                 
Costs and Expenses:                                
General and Administrative     710,239       858,137       2,397,434       2,280,268  
Lease Operating     218,953       248,028       803,549       969,390  
Delay Rentals     0       2,400       49,565       34,192  
Lease Impairment     83,755       37,494       96,436       37,494  
Well Equipment Write Down     0       0       19,000       0  
Legal and Accounting     130,037       39,030       453,935       307,433  
Marketing     94,861       133,047       240,608       263,365  
Depreciation, Depletion and Amortization     70,018       62,880       209,238       241,015  
                                 
Total Costs and Expenses     1,307,863       1,381,016       4,269,765       4,133,157  
                                 
Gain (Loss) on Turnkey Drilling Programs     887,440       562,885       903,677       959,339  
Gain (Loss) on Sale of assets     0       369,977       10,070       335,376  
                                 
Income (Loss) From Operations     21,372       229,105       (1,995,464 )     (263,313 )
Other Income (Expense):                                
Interest Expense     (21,766 )     (22,792 )     (64,495 )     (60,085 )
                                 
Income (Loss) Before Income Tax Expense     (394 )     206,313       (2,059,959 )     (323,398 )
                                 
Net Income (Loss)   $ (394 )   $ 206,313     $ (2,059,959 )   $ (323,398 )
                                 
Basic Earnings Per Share   $ 0.00     $ 0.01     $ (0.14 )   $ (0.02 )
                                 
Diluted Earnings Per Share   $ 0.00     $ 0.01     $ (0.14 )   $ (0.02 )
 

The notes to unaudited financial statements are an integral part of this financial statement.

CONTACT: Contact:
Royale Energy, Inc.
Chanda Idano 
Director of Marketing & PR 
619-383-6600 
chanda@royl.com 
http://www.royl.com

Left Menu Icon
Right Menu Icon