SAN DIEGO, April 12, 2011 /PRNewswire/ -- Royale Energy, Inc. (NASDAQ: ROYL) today announced that it has placed the Goddard 3 and Magnum wells into production. Magnum was drilled and tested in 4th quarter 2010 in its deepest objective, while the main zone remains "behind pipe" to be produced at a later time. Following the completion of a pipeline extension, the well was placed online and began selling gas at a rate of 330 MCF per day. It will be systematically raised toward a target rate of 750 MCF per day.
Goddard 3 was placed online at a current rate of 500 MCF per day, and will be increased to a target rate of 1,000. The well is the third in Royale's highly prolific Goddard reservoir, deepening the limits of productive Forbes gas sands within the company's Lonestar field area.
"Our continued success in adding production here encourages us to expand our exploration efforts," notes Stephen Hosmer Co-CEO, "We are currently planning to drill several additional wells, and conduct a new proprietary seismic survey to extend the field."
Royale remains committed to the development of domestic natural gas production, currently priced at $4.25 per MCF. "While gas has not kept pace with the rise in oil prices," adds Hosmer, "we believe the sector will see a rapid upward correction as the economy improves. Historically, natural gas prices have tracked oil at a ratio of 10 to 1, so with oil approaching $110 per barrel, gas prices could rebound to nearly $11 per MCF."
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.