SAN DIEGO--(BUSINESS WIRE)--May 24, 2002--Royale Energy Inc. (Nasdaq: ROYL ) announced today the financial results for the 1st quarter ended March 31, 2002.

Revenues for the quarter ended March 31, 2002 were $2,472,486 compared to $5,951,867 in the first quarter of 2001. A net loss for the quarter ended March 31, 2002 of ($233,712), or ($0.05) per share fully diluted, compared with $3,030,505 or $0.68 per share, fully diluted for first quarter of 2001. Significantly lower product prices resulted in the lower earnings.

Net cash flow per share in the first quarter was $1,266,683 or $0.29 per share.

Lower debt borrowings during the first quarter of 2002 led to a decrease in interest expense from $50,312 in the first quarter of 2001 to $4,795 in the first quarter of 2002.

Total operated company production has now been increased by 40% from 10,000 MCF per day in the first quarter to 14,000 MCF as of May 25th.

The company has drilled a total of seven new wells in the first half of 2002, and an operational update will be provided in June.

Donald Hosmer, president & CEO, commented, "We experienced overall growth in company production during this period. The drop in natural gas prices from an average of $11.76 per MCF in the 1st quarter of 2001 to $2.39 per MCF for the same period in 2002, accounts for the change in results. We are currently being paid in excess of $3.00 per MCF on our production and believe that this price, coupled with growth in production, plus recent drilling successes should result in improved cash flow through the remainder of 2002."

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