ROYALE ANNOUNCES OPERATIONS UPDATE ON THE PERMIAN BASIN JOINT DEVELOPMENT AGREEMENT
Royale Announces an initial rate of 1,347 BOPD and 1,649 MCFD
SAN DIEGO, Oct. 04, 2023 (GLOBE NEWSWIRE) — Royale Energy, Inc. (OTCQB: ROYL) is pleased to announce new progress on its Joint Development Agreement (JDA) with Ares Energy LTD, located in the Permian Basin, Texas. This project is a horizontal resource play in the Mississippian interval. Royale and its investors have a 5% Working Interest in the first two wells drilled and 7% Working Interest in the third and fourth wells drilled on the 6,900 net acres project located in Ector County, Texas.
The well encountered porous and permeable zones in both the Strawn and Odom formations. The well was initially completed in the Odom formation where it averaged 85 barrels of oil and 120 thousand cubic feet per day of natural gas. The Upper Strawn formation has 35’ of net pay and will be completed at a later date.
Royale retains a 40% working interest in the V.T. McCabe #70.
To date there have been four wells drilled on this acreage. The first well that was completed in March 2023 demonstrated an initial production rate of 818 BOPD & 1,100 MCFD with expected reserves exceeding 1,400,000 barrels of oil equivalent.
The second well was completed in August 2023, and has demonstrated an initial rate of 1,347 BOPD & 1,649 MCFD with expected reserves exceeding 1,500,000 barrels of oil equivalent.
The third and fourth wells have been drilled and are currently being completed with production expected to begin in early October 2023.
As used in this press release, “BOPD” means barrels of oil per day, “MCFD” means thousand cubic feet per day.
We anticipate drilling one more well in 2023 and three to six more wells in 2024 on this project.
About Royale Energy. Inc.
Royale Energy, Inc. (OTCQB: ROYL) is an independent exploration and production company based in San Diego, California, focused on the acquisition, development, and marketing of oil and natural gas. The Company has its primary operations in California’s Los Angeles Basin and Texas’s Permian Basin.
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.
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