SAN DIEGO, CA--(BUSINESS WIRE)--March 20, 2002--Royale Energy, Inc. (NASDAQ: ROYL ) earned record profits and cash flow for the full year 2001.

For the year ended Dec. 31, 2001, the company reported revenues of $15,858,273, an increase of 35.7 percent over 2000 revenues of $11,687,352. The increased revenues translated into a net income of $3,746,524, a 22.4 percent increase over 2000. Earnings per share increased to $0.90 from $0.73 basic earnings per share, and $0.84 versus $0.68 per share fully diluted. This represents a return on equity of 33.2 percent and a return on assets of 19.1 percent.

The company's cash flow per share climbed to $7,705,142, or $1.85 per basic share, an increase of 125.6 percent over 2000 cash flow of $0.82 per share.

According to the company's Chief Financial Officer Stephen Hosmer, "The 2001 increase in oil and gas sales of 36.5 percent shows growth in exploration and production operations that has continued into the first quarter of 2002 with a 30 percent increase in production from year end 2001."

"The company should be able to maintain or increase earnings in 2002 based on increased cash flow, increased drilling and higher Direct Working Interest sales," according to C.E.O. Donald H. Hosmer. He further stated that strong fundamentals for natural gas, along with the company's increased inventory of oil prospects, should provide stronger growth for the future.

Royale Energy is an independent producer of natural gas and oil primarily in California. Headquartered in San Diego, the company applies modern computer-aided exploration technologies in the exploration and development of oil and/or natural gas.

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.

                                          2001              2000
                                     --------------    --------------

Revenues
  Oil and gas production                8,452,282         6,194,451
  Turnkey drilling                      6,703,452         4,792,151
  Supervisory fees and other              702,539           700,750
                                     --------------    --------------

  Total Revenues                       15,858,273        11,687,352
                                     --------------    --------------
Costs and Expenses
  General and administrative            2,459,758         1,737,201
  Geological and geophysical expense       56,806            22,337
  Turnkey drilling and development      3,065,747         1,975,242
  Lease operating                       1,266,245           936,841
  Lease impairment                      2,062,028         1,540,845
  Legal and accounting                    644,812           635,893
  Marketing                               848,723           686,193
  Depreciation, depletion and
   amortization                         1,282,640           586,907
                                     --------------    --------------

  Total Costs and Expenses             11,686,759         8,121,459
                                     --------------    --------------


Income from Operations                  4,171,514         3,565,893
Other Expense
Interest expense                           54,455           427,304
                                     --------------    --------------

Income Before Income Tax Expense        4,117,059         3,138,589

Income Tax Provision                      370,535            78,454
                                     --------------    --------------

Net Income                              3,746,524         3,060,135
                                     ==============    ==============

Basic Earnings Per Share                    $0.90             $0.73
                                     ==============    ==============

Diluted Earnings Per Share                  $0.84             $0.68
                                     ==============    ==============

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