Royale Continues Upward Momentum

Earns $979,079 YTD

Oct 28, 2010, 13:00 ET from Royale Energy, Inc.

SAN DIEGO, Oct. 28 /PRNewswire-FirstCall/ -- Royale Energy, Inc. (Nasdaq: ROYL) today announced 3rd quarter Net Income of $276,200, bringing 2010 earnings to $979,079, compared to a loss of $2,014,612 for the same period in 2009. This represents an improvement of $2,993,691 from the prior year, exceeding, in nine months, all full-year results since 2005.

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The company's Basic Earnings per share (EPS) totaled 10 cents for the year and 3 cents for the quarter ended September 30, 2010 compared to a loss of 23 cents and 10 cents for 2009 respectively.  Fully diluted EPS amounted to 2 cents for the quarter and 9 cents for the year to date in 2010.

Revenue growth was a key factor, increasing by 101% for the quarter, from $1,211,718 in 2009 to $2,435,856 in 2010. For the 9 months ended September 30, 2010, revenue rose 71.5% to $8,200,022 from $4,780,283 in 2009.

"These results reflect our commitment to overcome the flagging economy through insightful cost control, and targeted development," said Stephen Hosmer. "Recent drilling has resulted in increased production, and positions shareholders to benefit from the anticipated recovery."

Company production has increased by more than 50% in recent weeks.  Three new wells are underway, which are expected to double daily production by year-end. Royale anticipates an increasing pace of exploration through additional development, drilling and seismic acquisition in coming months.

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.

http://www.royl.com

ROYALE ENERGY, INC.

STATEMENTS OF OPERATIONS




Three Months Ended September 30,


Nine Months Ended September 30,



2010


2009


2010


2009



(Unaudited)


(Unaudited)


(Unaudited)


(Unaudited)










Revenues:









   Sale of Oil and Gas


$618,282


673,916


$2,043,693


$2,135,421

   Turnkey drilling


1,646,971


395,879


5,625,535


2,205,253

   Supervisory Fees and Other


170,603


141,923


530,794


439,609










     Total Revenues


2,435,856


1,211,718


8,200,022


4,780,283










Costs and Expenses:









   General and Administrative


917,033


905,168


2,866,841


2,663,151

   Turnkey Drilling and Development


760,816


6,842


1,864,420


893,386

   Lease Operating


279,098


358,553


874,107


1,138,425

   Lease Impairment


87,835


82,716


201,883


98,075

   Geological and Geophysical Expense


0


0


0


0

   Bad Debt Expense


0


172,839


0


202,404

   Legal and Accounting


275,718


128,862


530,278


657,281

   Marketing


154,279


269,166


457,680


650,186

   Depreciation, Depletion and Amortization


252,685


515,980


731,307


1,574,104










       Total Costs and Expenses


2,727,464


2,440,126


7,526,516


7,877,012










Gain (Loss) on Sale of assets


(3,310)


0


(3,310)


(4,833)










     Income (Loss) From Operations


(294,918)


(1,228,408)


670,196


(3,101,562)

Other Income (Expense):









   Interest Expense


(8,691)


(38,528)


(19,235)


(79,624)

   Gains/(Loss) on Marketable Securities


743,296


(91,620)


907,679


(120,269)










Income Before Income Tax Expense


439,687


(1,358,556)


1,558,640


(3,301,455)

Income tax provision (benefit)


163,487


(529,731)


579,561


(1,286,843)










Net Income Before Cumulative Effect of Accounting Chg


276,200


(828,825)


979,079


(2,014,612)

Cumulative Effect of Accounting Change


0


0


0


0










Net Income (Loss)


$276,200


($828,825)


$979,079


($2,014,612)



















Basic Earnings Per Share


$0.03


($0.10)


$0.10


($0.23)



















Diluted Earnings Per Share


$0.02


($0.10)


$0.09


($0.23)



















Other Comprehensive Income (Loss)









   Unrealized Gain (Loss) on Equity Securities


($1,452,967)


$1,258,596


($1,907,999)


$1,400,465

   Less: Reclassification Adjustment for Losses









       (Gains) Included in Net Income


(743,296)


91,621


(907,679)


120,269










Other Comprehensive Income (Loss), before tax


(709,671)


1,166,975


(1,000,320)


1,280,196

Income Tax Expense (Benefit) Related to Items of









   Other Comprehensive Income


(263,998)


453,953


(323,757)


499,619










Other Comprehensive Income (Loss), net of tax


(445,673)


713,022


(676,563)


780,577



















Comprehensive Income (Loss)


($169,473)


($115,803)


$302,516


($1,234,035)










The above is selected financial information that should be read in conjunction with the notes, and disclosures available in the company’s 10K filing.



SOURCE Royale Energy, Inc.



RELATED LINKS

http://www.royl.com