SAN DIEGO, Oct. 8 /PRNewswire/ -- Royale Energy, Inc. (Nasdaq :ROYL ) today announced that it began increasing the production rate of its Goddard discovery well to over 4,000 MCF per day. The well was placed into production on April 15th 2010, at a rate of 1,000 MCF per day. On September 25th the company began increasing the rate to 4,000 MCF per day, with a target of reaching 5,000 MCF per day by Mid-October.
With over 100,000 MCF produced to date, the reservoir has shown little sign of pressure decline, adding confidence to the company's estimates of the overall size of the accumulation.
Royale has now filed applications for permits to drill up to three additional wells into the accumulation, with two of these wells planned for 4th quarter 2010. The new wells are needed to accelerate the drainage of the reservoir and to reach the distant edge of the accumulation ahead of a 3rd party well that may be capable of drainage.
Information from the drilling of this 3D seismic anomaly has been integrated into the company's interpretation of additional data in the area, resulting in the development of a number of additional prospects.
The Magnum #1 is the next prospect of this kind, which will be drilled approximately one mile north of the Goddard 7-1. The well is scheduled to be drilled by the end of October.
Royale is actively working to increase pipeline capacity to over 20 million cubic feet per day, to handle the anticipated production capabilities of these immediate wells, and has begun planning for additional connection points for its 2011 drilling plans.
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.