Improves 1st Quarter Results over 2008
SAN DIEGO--(Business Wire)--
During this period of sustained economic downturn, Royale Energy, Inc.
(NASDAQ:ROYL) anticipated and acted on the need for cost containment. These
measures resulted in a 13.6% reduction in total expenses for first quarter 2009
compared to the same period in 2008. A net loss of $891,056 was an improvement
over the loss of $927,460 a year ago.
"While the industry saw a 70% drop in product prices, we experienced only a 51%
decline in oil & gas revenue," notes Stephen Hosmer. "The cost containment
measures that we began in 2nd quarter 2008 resulted in an improvement in our
operating margins, positioning us to capitalize on the emerging market recovery
later 2009."
As noted in the latest Operational Update, Royale`s plans for upcoming activity
have the potential to more than double production in time for sale into the
expected improved price environment.
"As we have experienced from our 23 year history, we have always been able to
act upon the opportunity during the low point of market cycles," Don Hosmer
points out. "The lower current drilling cost presents ideal timing to develop
our inventory of quality drilling prospects."
About Royale Energy
Headquartered in San Diego, Royale Energy, Inc. is an independent energy
company. The company is focused on development, acquisition, exploration, and
production of natural gas and oil in California, Texas and the Rocky Mountains.
It has been a leading independent producer of oil and natural gas for over 20
years. The company's strength is continually reaffirmed by investors who
participate in funding over 50% of the company's new projects. Additional
information about Royale Energy, Inc. is available on its web site at
www.royl.com.
Forward-Looking Statements
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.
Royale Energy, Inc.
Chanda Idano, Director of Marketing & PR
619-881-2800
chanda@royl.com
http://www.royl.com
Copyright Business Wire 2009
