Royale Earns $1,905,595 in 2nd Quarter
Achieves 14 Cents a Share
SAN DIEGO, Aug. 5, 2013 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL)
today announced financial results for second quarter 2013, reporting a Net
Income of $1,905,595 or 14 cents per basic and fully diluted share. The
favorable results are highlighted by comparison to a loss of $1,316,724 for
the same period in 2012, representing a turnaround of $3,222,319.
The quarterly results bring the full year to a positive result of $549,798 in
Net Income compared to a loss of $2,683,579 in the first half of 2012, a
"We are pleased that the progress we have made on the Alaska North Slope oil
shale property has strengthened our financial position significantly," said
Stephen Hosmer, "We are looking forward to ongoing contribution of this
property to our overall strategy and financial results."
Royale is currently engaged in drilling two natural gas wells in California's
Sacramento Basin and expects to drill three additional wells in the fourth
quarter. With the success of the company's Dorset and Zodiac wells, which are
now on production, total gas production is on the rise at the same time
city-gate gas prices are climbing.
In other areas, the company has reached an agreement for the drilling of
several oil wells on its property in the Fuhrman-Mascho field of the Permian
basin of Texas. Royale will receive an Overriding Royalty and a portion of the
Working Interest in up to eight wells, with the commencement of drilling by
the end of this year.
Alaska North Slope acreage is continuing to advance with the expectation that
an agreement will be signed within the month to acquire seismic data over both
the Western and Central Blocks, with all costs to be borne by Rampart Energy.
Executive from both companies meet with key state officials last month and are
encouraged by the welcome environment the state offers.
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
ROYALE ENERGY, INC.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Three Months Ended June 30, Six Months Ended June 30,
2013 2012-restated 2013 2012-restated
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Sale of Oil and Gas $ 457,101 $ 370,950 $ 787,996 $ 867,844
Turnkey drilling 893,667 0 893,667 0
Supervisory Fees and 184,267 164,863 325,038 369,547
Total Revenues 1,535,035 535,813 2,006,701 1,237,391
Costs and Expenses:
General and 696,201 991,495 1,556,214 2,011,447
Turnkey Drilling and 498,700 119,758 541,843 190,158
Lease Operating 241,128 310,821 533,950 606,331
Lease Impairment 0 181,627 0 181,627
Geological and 0 63,657 0 422,686
Inventory Write Down 0 0 0 62,744
Legal and Accounting 80,833 149,572 252,464 419,875
Marketing 65,095 171,922 102,721 326,141
Depreciation, Depletion 239,904 373,657 461,264 737,119
Total Costs and Expenses 1,821,861 2,362,509 3,448,456 4,958,128
Gain on Sale of Assets 2,294,920 430 2,294,920 1,737
Income (Loss) From 2,008,094 (1,826,266) 853,165 (3,719,000)
Other Income (Expense):
Interest Expense (102,499) (35,624) (303,367) (68,362)
Income (Loss) Before
Income Tax Expense 1,905,595 (1,861,890) 549,798 (3,787,362)
Income tax provision 0 (545,166) 0 (1,103,783)
Net Income (Loss) $ 1,905,595 $ (1,316,724) $ 549,798 $ (2,683,579)
Basic Earnings (Loss) $ 0.14 $ (0.12) $ 0.04 $ (0.24)
Diluted Earnings (Loss) $ 0.14 $ (0.12) $ 0.04 $ (0.24)
Unrealized Gain on $ 0 $ 0 $ 0 $ 342
Other Comprehensive 0 0 0 342
Income, before tax
Income Tax Expense
Related to Items 0 0 0 99
Other Comprehensive 0 0 0 243
Income, net of tax
Comprehensive Income $ 1,905,595 $ (1,316,724) $ 549,798 $ (2,683,336)
See notes to unaudited financial statements
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