Current Royale Operations
Royale Energy Inc. is a development oil and gas production Company. Royale owns and operates wells in California and Texas and markets oil and natural gas to its customers.
Royale maintains a commitment to providing investment products, which seek to minimize investor risk while providing maximum return. We have accomplished this through the use of joint investment in multiple wells. This commitment allowed the Company to grow from a small beginning to its current stature as a publicly traded independent producer.
The Company currently owns interest in over 70 producing oil and natural gas wells. Royale Energy is focused on building prospect inventory through acquisitions of property, 3D seismic surveys and field development over some of the most prolific natural gas and oil producing fields.
Royale Energy provides direct management of company properties as needed to monitor and maintain a high level of productivity. We are focused today to identify and develop low risk drilling opportunities wells drilled in known oil and gas fields.
On March 1, 2018, Royale merged with Matrix Oil Management. This strategic transaction created a high-growth California and Texas focused operating company with an extremely experienced technical team and more than 80 proved undeveloped drilling locations. Royale and Matrix both have been successful low-cost finders of oil and natural gas. Today we are focused on the Permian Basin (North Jameson) and Pradera Fuego in Texas.
RIO VISTA GAS FIELD
On October 22, 2018, Royale Energy and California Resources Corporation (CRC) announced that the two companies had entered into a new joint venture agreement to develop wells throughout the Rio Vista field, the biggest gas field in California. The joint venture agreement was to drill and develop multiple, stacked productive formations in this prolific and historic property.
The agreement expanded the joint venture development area to the entire Rio Vista field. Royale has access to a larger area, more formations and significantly larger reservoirs to drill lower risk infill development wells than had been available under the prior agreement. Royale’s ability to drill low risk underdeveloped reserves has increased substantially in a very prolific, undeveloped gas field.
Royale evaluates drilling, development wells that target Eocene and/or Upper Cretaceous-age strata in the Eastern part of the field plus the Capay, Midland Sand and Mokelumne River formations in each well. Target depths are between 4,000 and 7,200 ft. Initial production rates are expected to range between 1,500 MCF to 2,000 MCF per day, with potential for wells with reserves of several billion cubit feet (BCF).
To date, Royale has drilled twelve commercially productive Rio Vista wells in the Capay, Martinez and McCormack formations with the original agreement. Royale has an opportunity to evaluate drill locations through 2022.
The Rio Vista field was discovered in 1936 and had produced approximately 4 trillion cubic ft. from more than 15 stacked reservoirs.
PRADERA FUEGO OIL FIELD
Located in the Permian Basin (West of the city of Odessa, Ector County, Texas), the Pradera Fuego Project is drilling horizontal wells in the Mississippian section of the Barnett Shale. In Black Gold VI, we will be drilling three horizontal wells in the same area as the Sweet Melissa 1H well which is one of the best wells in the entire play.
Royale Energy has been able to acquire an interest in the Pradera Fuego Project operated by Ares Energy. Pradera Fuego is a 20,200 acre shale play in the heart of one of the most active horizontal shale plays in the Permian Basin. The Permian Basin produces 4.1 million barrels of oil per day contributing 38% of total U.S. supply.
The Royale /Ares acreage position is surrounded by four of the largest operators in Texas, that includes XTO, the subsidiary of Exxon, with 6,500 acres to our North and recently purchased an additional 2,880 acres just to the southeast, OXY USA with 53,000 acres adjacent to us on the East, where Continental Resources is also developing 12,160 acres, and Diamondback Energy developing 31,000 acres adjacent to us on the South.
Reserve analysis indicates the “Ultimate Recoveries” for these wells to range from 965,000 to 1,500,000 barrels of oil and 1,750,000 to 2,500,000 MCF of natural gas.
At this time, this project is receiving a premium over WTI for the 42 API gravity oil and an additional premium for its 1,450 MMBTU of natural gas.
SANSINENA OIL FIELD
The Sansinena oil field is located in the NE portion of the Los Angeles Basin along the southern edge of the Puente Hills and is located immediately east of the Whittier Field also along the Whittier fault trend. The Puente Hills are a positive feature formed by left transcurrent movement on a NW-SE complex of faults including the Brea-Olinda, Whittier and Montebello faults and associated sub-faults. These faults form a series of anticlinal fault-blocks and compound stratigraphic structural traps resulting in the trapping of Miocene oil that was generated either deeper in the Los Angeles Basin or in deeper fault blocks along the fault trend.
Oil and gas productive intervals in the Sansinena field consist of stacked hydraulically independent reservoir sands in the Miocene Yorba, Soquel (Miocene C and D respectively), Sycamore Canyon (Miocene A) and Pliocene Fernando (Repetto 7-6) intervals.
Oil and gas are the dominant pore-filling fluids in Sansinena over more than 4,500 vertical feet, with a prolific hydrocarbon sourcing system. The field has offered numerous infill drill targets. Today Royale works with RMX Energy, LLC to identify and develop infill locations. As of October, 2020, five of these infill wells have been successfully drilled and all have exceeded our expectations.
