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Royale Energy Reports Operational Update

SAN DIEGO, CA--(BUSINESS WIRE)--March 26, 2002--Royale Energy, Inc. (NASDAQ: ROYL ) today announced drilling and production results for its exploration activities.

The company has drilled 10 natural gas wells and completed 10 wells at its Victor Ranch natural gas field in the Sacramento Basin in California. Based on a proprietary 3D seismic survey, 11 prospects were identified with bright spot/AVO analysis. The four most recent wells, Victor Ranch 1-7, Victor Ranch 2-7, Victor Ranch 4-8 and Victor Ranch 1-9 are producing 5,500,000 cubic feet per day. One more well has been tested with a flow rate of 1,500,000 cubic feet per day and will begin producing in April. At least one more Victor Ranch prospect will be drilled later in the year.

A total of three natural gas wells were drilled and all three were completed in the McCormack field. A non-proprietary 3D seismic survey was acquired that identified left behind reserves in this older established field in the Sacramento Basin. Total company field production is two million cubic feet per day.

A proprietary 3D seismic survey has resulted in a new pool discovery in the Lonestar natural gas field. The Lonestar #1 has been tested with a stabilized flow rate of 2,900,000 cubic feet per day and will begin producing in April. Two more wells will be drilled in the second quarter. The first well will test another look alike seismic anomaly nearby and the second well will be a developmental well to the Lonestar #1 discovery well.

The company completed a 26-mile proprietary 3D seismic survey over its Bowerbank natural gas field in January 2002. The data has been processed and is currently being interpreted. At this time, several new prospects have been identified and drilling will begin in the second quarter of 2002. The company began drilling the Bowerbank field in 1994 based upon 2D seismic data and has drilled 18 wells with an 80% success rate.

These state of the art 3D surveys have better illustrated the nature of our current production and provided development well targets and new pool exploration prospects with significant natural gas reserve potential. The seismic amplitudes and AVO technology from the 3D surveys is used to detect trapped gas, helping to reduce the risk to the company and to our drilling participants.

At the company's Dunnigan Hills new pool discovery well, production will begin soon. All of the pipeline easements have been obtained and construction will begin in the second quarter. When completed, this should add another one million cubic feet per day.

Company net production is over seven million cubic feet per day with an additional two million cubic feet per day waiting on pipeline.

All produced natural gas is being sold on a Gas Daily Index currently priced at $3.59 per MCF.

Royale Energy is also participating for a 50% working interest in five oil prospects in the Permian Basin of West Texas. The first well began drilling this week and will take approximately 25 days to drill.

Royale Energy is an independent producer of natural gas and oil primarily in California. With headquarters 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.

Contact:

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


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