Royale Energy Announces Positive Operating Income for the 4th Quarter 2015

SAN DIEGO

, March 15, 2016 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (OTCQB:ROYL) announced today its second consecutive quarter of positive operating income. For the 4^th Quarter of 2015, Royale reported an operating profit of $70,736 compared to an operating profit of $21,372 for the 3^rd Quarter of 2015. This improvement quarter over quarter comes despite a 14% decline in natural gas prices during the period. Additionally, Royale improved its quarterly operating income by $1,877,674 when compared to the 4^th quarter operating loss of $1,806,938 in 2014.  For the year ended December 31, 2015, Royale reported an improvement of $141,040 in its net loss from $2,151,856 in 2014 to $2,010,816 in 2015, or a $0.13 loss per share basic and diluted.  Despite declining production and commodity prices, Royale was able to turn its operations around by decreasing expense, increasing turnkey drilling activities, and selling certain non-core operational assets. 

As Royale moves forward in this challenging oil and gas price environment, it remains focused on reducing its operating and administrative costs while continuing to strengthen its balance sheet. Management continues to pursue joint ventures that complement and expand Royale’s drilling opportunities. These joint ventures allow Royale to acquire oil and gas properties with low-cost developments and long term upside potential. 

Royale is currently in the process of completing a well in California’s Sacramento Basin, and it anticipates drilling an additional five wells in 2016.

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 COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2015, AND 2014
		2015				2014
Revenues:
Sale of Oil and Gas		$	1,018,928			$	2,598,297
Supervisory Fees and Other			694,160				623,201
Total Revenues			1,713,088				3,221,498
Costs and Expenses:
General and Administrative			3,181,571				3,162,113
Lease Operating			1,000,769				1,427,673
Delay Rentals			448,313				616,806
Lease Impairment			424,163				268,093
Well Equipment Write Down			60,960				-
Bad Debt Expense			536,538				653,133
Legal and Accounting			558,471				401,160
Marketing			326,143				430,779
Depreciation, Depletion and Amortization			400,813				315,574
Total Costs and Expenses			6,937,741				7,275,331
Gain on Turnkey Drilling Programs			2,330,969				1,640,731
Gain on Sale of Assets			968,956				342,851
Loss from Operations			(1,924,728	)			(2,070,251	)
Other Expense:
Interest Expense			(86,088	)			(81,605	)
Loss Before Income Tax Expense			(2,010,816	)			(2,151,856	)
Provision for Income Taxes			-				-
Net Loss			(2,010,816	)			(2,151,856	)
Basic Loss Per Share			(0.13	)			(0.14	)
Diluted Loss Per Share			(0.13	)			(0.14	)
Other Comprehensive Income (Loss)
Unrealized Loss on Equity Securities			-				16,448
Less: Reclassification Adjustment for Losses Included in Net Income			(6,503	)			-
Other Comprehensive Gain (Loss) before tax			6,503				(16,448	)
Other Comprehensive Gain (Loss), net of tax			6,503				(16,448	)
Comprehensive Loss			(2,004,313	)			(2,168,304	)

ROYALE ENERGY, INC.
STATEMENTS OF OPERATIONS
FOR THE FOUR QUARTERS ENDED DECEMBER 31, 2015
		Three Months Ended																YTD
		March 31,				June 30,				September 30,				December 31,				December 31,
			2015				2015				2015				2015				2015
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Audited)
Revenues:
Sale of Oil and Gas		$	294,309			$	281,984			$	255,179			$	187,456			$	1,018,928
Supervisory Fees and Other			175,760				166,706				186,616				165,078				694,160
Total Revenues			470,069				448,690				441,795				352,534				1,713,088
Costs and Expenses:
General and Administrative			828,944				858,251				710,239				784,137				3,181,571
Lease Operating			314,792				269,804				218,953				197,220				1,000,769
Delay Rentals			29,128				20,437				-				398,748				448,313
Lease Impairment			12,681				-				83,755				327,727				424,163
Well Equipment Write Down			19,000				-				-				41,960				60,960
Bad Debt Expense			-				-				-				536,538				536,538
Legal and Accounting			224,476				99,422				130,037				104,536				558,471
Marketing			76,988				68,759				94,861				85,535				326,143
Depreciation, Depletion and Amortization			74,791				64,429				70,018				191,575				400,813
Total Costs and Expenses			1,580,800				1,381,102				1,307,863				2,667,976				6,937,741
Gain (Loss) from Turnkey Drilling Programs			-				16,237				887,440				1,427,292				2,330,969
Gain (Loss) from Sale of Assets			-				10,070				-				958,886				968,956
Income (Loss) From Operations			(1,110,731	)			(906,105	)			21,372				70,736				(1,924,728	)
Other Income (Expense):
Interest Expense			(21,185	)			(21,544	)			(21,766	)			(21,593	)			(86,088	)
Income Before Income Tax Expense			(1,131,916	)			(927,649	)			(394	)			49,143				(2,010,816	)
Income tax provision			-				-				-				-				-
Net Income (Loss)		($	1,131,916	)		($	927,649	)		($	394	)		$	49,143			($	2,010,816	)
Basic Earnings Per Share		($	0.08	)		($	0.06	)		$	0.00			$	0.00			($	0.13	)
Diluted Earnings Per Share:		($	0.08	)		($	0.06	)		$	0.00			$	0.00			($	0.13	)

Contact:
Royale Energy, Inc.
Chanda Idano
Director of Marketing & PR
619-383-6600
chanda@royl.com
http://www.royl.com

Source: Royale Energy

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Source: Equities.com News (March 15, 2016 - 1:28 AM EDT)

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