Royale Energy Inc. Completes the First Two Wells of 2016
May 17, 2016 at 06:35 pm IST
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Royale Energy Inc. reported that it has recently completed two new wells, a natural gas well in Northern California and an oil well in South Louisiana. The first well, the Royale Strain 11-2 was drilled to 8,670 ft. and discovered two natural gas sands. The well was completed in the upper portion of one of the gas sands. The open flow rate stabilized at 1,015 MCF per day during testing. The well is now on production at a steady rate of 520 MCF per day on a 5/64 choke with 2825/3050 psi. This was the first well completed under the development agreement announced in October 2015. The oil well along with the salt water disposal well were completed and put into production in March at a rate of 50 barrels of oil per day and 350 MCF per day on a 9/64 choke. The choke will be gradually increased over the next 30 days with an anticipated rate of 75 barrels of oil and 500 MCF per day. These are the first two wells of the six wells that will be drilled by the end of this year.
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.