SAN DIEGO, Oct. 28, 2015 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (NASDAQ:ROYL) today announced its third quarter 2015 results, in which it posted $21,372 in operating income for the three months ending September 30, 2015 despite the worst energy market in recent history. This accomplishment overcomes a sharp decline in natural gas prices and declining production.
In response to the deterioration of the sector, Royale has been able to reduce General and Administrative expenses by over 17% from the same quarter last year, and has achieved an 11% reduction in Lease Operating expenses for the three months ending September 30, 2015 when compared to the same period in 2014.
The company is optimistic that it can overcome this phase of the industry cycle and emerge stronger and better positioned to capitalize on the future.
“We plan to sell non-core assets and raise additional equity to provide the capital necessary to drill new wells and acquire producing properties,” said Stephen Hosmer the company’s CFO. “This plan is expected to allow us to regain NASDAQ compliance, in the coming months, and become consistently profitable into the foreseeable future.”
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.
STATEMENTS OF OPERATIONS
FOR THE PERIODS ENDED SEPTEMBER 30, 2015 AND 2014
Three Months Ended September 30,
Nine Months Ended September 30,
2015
2014
2015
2014
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Revenues:
Sale of Oil and Gas
$
255,179
$
507,784
$
831,472
$
2,077,750
Supervisory Fees and Other
186,616
169,475
529,082
497,379
Total Revenues
441,795
677,259
1,360,554
2,575,129
Costs and Expenses:
General and Administrative
710,239
858,137
2,397,434
2,280,268
Lease Operating
218,953
248,028
803,549
969,390
Delay Rentals
0
2,400
49,565
34,192
Lease Impairment
83,755
37,494
96,436
37,494
Well Equipment Write Down
0
0
19,000
0
Legal and Accounting
130,037
39,030
453,935
307,433
Marketing
94,861
133,047
240,608
263,365
Depreciation, Depletion and Amortization
70,018
62,880
209,238
241,015
Total Costs and Expenses
1,307,863
1,381,016
4,269,765
4,133,157
Gain (Loss) on Turnkey Drilling Programs
887,440
562,885
903,677
959,339
Gain (Loss) on Sale of assets
0
369,977
10,070
335,376
Income (Loss) From Operations
21,372
229,105
(1,995,464
)
(263,313
)
Other Income (Expense):
Interest Expense
(21,766
)
(22,792
)
(64,495
)
(60,085
)
Income (Loss) Before Income Tax Expense
(394
)
206,313
(2,059,959
)
(323,398
)
Net Income (Loss)
$
(394
)
$
206,313
$
(2,059,959
)
$
(323,398
)
Basic Earnings Per Share
$
0.00
$
0.01
$
(0.14
)
$
(0.02
)
Diluted Earnings Per Share
$
0.00
$
0.01
$
(0.14
)
$
(0.02
)
The notes to unaudited financial statements are an integral part of this financial statement.
Contact:
Royale Energy, Inc.
Chanda Idano
Director of Marketing & PR
619-383-6600
chanda@royl.com
http://www.royl.com
Royale Energy Funds, Inc. is an independent oil and gas producer. The Company also performs turnkey drilling operations. The Company owns wells and leases in various geological basins located primarily in California, Texas, Oklahoma, and Utah, and offers fractional working interests. The Company also owns an overriding royalty interest in discovery in Alaska. It usually sells a portion of the working interest in each well it drills or participates with third-party participants and retains a portion of the prospect for its own account. The Company generally sells working interests in its prospects to accredited investors in exempt securities offerings. The prospects are typically bundled into multi-well investments, which permit third-party investors to diversify their investments by investing in several wells at once instead of investing in single-well prospects. The Company owns an interest in approximately 70 producing oil and natural gas wells.