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