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Royale
Energy Doubles 2000 Earnings In 3rd Quarter
San Diego, CA - November 13, 2000 - Royale Energy (NASDAQ: ROYL ) earned
$527,930.00 or $0.14 per basic share for the third quarter 2000
compared to $57,896.00, or $0.02 per basic share in the third quarter
1999. This doubles the company's nine-month earnings for the year
2000 to $1,065,099, or $0.28 per basic share from $537,079, or $0.14
per basic share in the first six months of 2000. Total revenues
in the third quarter were $2,962,880, up 27% from revenues of $2,335,352
in the third quarter of 1999. Total revenues of $7,356,359 for the
first nine months of 2000 were 17% higher than total revenues of
$6,286,990 recorded in the first nine months of 1999.
Higher product prices of natural gas along with higher production
from new wells and workovers on existing wells contributed to the
improved results. Historically, low storage inventories of natural
gas combined with soaring demand are bringing the highest prices
in a decade. The company has drilled a total of seven new wells
in 2000, with only one dry well. A total of four new wells have
been drilled and completed on the Victor Ranch 3D Survey. Two of
the new wells are producing and two will be connected in November.
The last well that was drilled in September, Victor Ranch 2-8, has
been completed in one of two formations for 1,700 mcf per day. The
first well was drilled on the McCormick 3D Survey in August and
is producing 500 mcf per day from only one of the three productive
intervals. A second McCormick well is being permitted. Workovers
on existing wells in the Bowerbank field have increased production
to over 3,000 mcf per day. Royale has several wells in the process
of connection, and is scheduling four more wells to be drilled in
the 4th quarter.
Commenting on these results, Don Hosmer, President & CEO stated:
"We are very pleased with our results in the 3rd quarter. With continued
strength in natural gas prices, we believe that we could continue
to experience very strong results in the 4th quarter of 2000. In
part, our aggressive drilling schedule is allowing the Company to
bring new production in rather quickly. At the same time we continue
to experience strong sales of our DWI projects which should allow
us to maintain this current pace of activity well into 2001."
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