SAN DIEGO, CA--(BUSINESS WIRE)--March 27, 2002--On March 18, 2002, the Royale Energy Board of Directors approved the issuance of a 15 percent stock dividend to shareholders of record on May 31, 2002.

This is the second annual stock dividend approved by the Board and reflects the profitability of the company.

The company's president, Donald Hosmer, said, "The increase in the return on equity from 32 percent in 2000 to 39 percent in 2001 shows the impact of successful drilling and increased production and allows the Company to further reward the stockholders with additional shares."

The company's CFO, Stephen Hosmer, said, "This will increase the number of outstanding shares providing greater liquidity and giving Royale Energy better exposure in the investment community."

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.

Contact:

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