SAN DIEGO--(BUSINESS WIRE)--Nov. 20, 2001--Royale Energy (Nasdaq: ROYL ) today announced third-quarter 2001 net income of $513,216, or $0.11 per diluted share, on revenues of $3,470,768.

For the same period a year ago, the Company earned $527,930, or $0.11 per share on revenues of $2,962,880.

Net income for the first nine months of 2001 was $5,321,798, or $1.14 per diluted share versus earnings of $1,065,009, or $0.23 per share, in the year earlier. Revenues for the first nine months of 2001 were $13,372,972, an 81.8 percent increase compared to $7,356,359 during the same period last year. Cash flow from operations for the first nine months of 2001 totaled $8,818,705, or $2.02 per share, compared with $1,729,323, or $0.40 per share for the same nine months of 2000.

The fact that the Company was able to maintain earning levels of a year ago despite lower oil and gas prices is the result of successful drilling in our Sacramento and San Joaquin Basin fields in California. The recent new discoveries at Victor Ranch, Lonestar and McCormack will add over 5 million cubic feet of natural gas per day and also gives the Company additional inventory of high quality development drilling locations for next year.

During the first nine months of 2001, the Company drilled 11 wells and completed 8 for a 73 percent success rate.

Royale Energy has been recognized by the Oil and Gas Journal as one of the fastest growing companies with a 46.4 percent growth in stockholders equity from year ending 1999 to year ending 2000. For just the first nine months of 2001, the Company has already grown stockholders equity by 56.2 percent.

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.

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 INCOME
	Three Months		Nine Months
	Ended		Ended
	September 30,		September 30,
	----------------------		----------------------
	2001	2000	2001	2000
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
	-----------	-----------	-----------	-----------
Revenues:
Sale of oil and gas	$1,047,184	$1,513,896	$7,639,243	$3,034,560
Turnkey drilling	2,213,667	1,290,594	5,195,055	3,758,152
Supervisory fees
and other	209,917	158,390	538,674	563,647
	-----------	-----------	-----------	-----------
Total Revenues	3,470,768	2,962,880	13,372,972	7,356,359
	-----------	-----------	-----------	-----------
Costs and expenses:
General and
administrative	523,023	411,156	1,576,314	1,232,552
Turnkey drilling and
development	1,068,694	664,678	2,200,800	1,568,529
Lease operating	313,696	254,181	940,387	724,284
Lease impairment	0	260,211	266,802	311,088
Legal and accounting	167,101	92,644	513,701	405,387
Marketing	220,032	199,833	740,211	507,211
Depreciation,
depletion and
amortization	428,402	439,657	1,107,189	1,207,527
	-----------	-----------	-----------	-----------
Total Costs and
Expenses	2,720,948	2,322,360	7,345,404	5,956,578
	-----------	-----------	-----------	-----------
Income From
Operations	749,820	640,520	6,027,568	1,399,781
Other expense:
Interest	0	112,590	51,029	334,772
	-----------	-----------	-----------	-----------
Income Before Income
Tax Expense	749,820	527,930	5,976,539	1,065,009
Income tax expense	236,604	0	654,741	0
	-----------	-----------	-----------	-----------
Net Income	$513,216	$527,930	$5,321,798	$1,065,009
	===========	===========	===========	===========
Diluted Earnings
Per Share	$0.11	$0.11	$1.14	$0.23
	===========	===========	===========	===========
Basic Earnings
Per Share	$0.12	$0.12	$1.22	$0.24
	===========	===========	===========	===========

Contact:

     Royale Energy Inc., San Diego
     619/881-2800