SAN DIEGO, Feb. 23, 2011 /PRNewswire/ -- Royale Energy, Inc. (Nasdaq: ROYL) today announced it has received regulatory approval to commence production on the Goddard #2 well. Pursuant to a public hearing before the Colusa County Board of Supervisors, Royale was granted a Final Major Use Permit, allowing the company to "open the spigot."
The well was immediately placed into production and is currently producing at a rate of approximately 10,000 MCF per day.
The Goddard #1 has been on-line, producing approximately 5,000 MCF per day since 3rd quarter 2010. The wells together with the newly drilled Goddard #3, which is also expected to commence production later this week, will drive company production totals to the highest levels in over a decade.
"Our forthcoming announcement of profit in 2010 does not reflect production levels achieved with today's announcement. We look forward to our future results as the new gas sales are reflected in the 2011 bottom-line," said Stephen Hosmer.
The 2010 earnings are expected to be released in early March, reflecting an overall positive trend in the company's results.
The construction of the pipeline from the recently drilled Magnum discovery will begin this month, allowing gas to flow from this well and from the Hubbard well if successful. The Hubbard is currently being drilled and total depth is expected to be reached next week.
About the Company
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.
SOURCE Royale Energy, Inc.