Royale Posts 120% Improvement Over 2010
First Q1 profit in 5 years
SAN DIEGO, May 6, 2011 /PRNewswire/ -- Royale Energy, Inc. (NASDAQ: ROYL) today announced first quarter 2011 net income of $76,853 compared to a loss of $372,515 for the same period in 2010. This result represents an improvement of $449,368 or 120.6%. Cashflow provided by Operating Activities increased to $460,532 for the first quarter 2011, an improvement of $677,629 or 312% over 2010.
Natural Gas production increased 172% in the first quarter, climbing to 342,092 MCF compared to 125,826 MCF in the same period 2010. The increased production was due to development drilling in the California's Sacramento basin, following up on the Company's prolific Goddard discovery.
This increase in production together with stronger turnkey drilling sales resulted in an improvement of 34% in net income on the four most recent quarters. Yearend net income of $1,308,028 for 2010 rose to $1,757,395 or 16 cents per share on a fully diluted basis over the four trailing quarters.
"We are pleased to recognize the results of the careful planning and development of our natural gas reserves," said Stephen Hosmer, the company's Co-CEO. "We have successfully navigated through a challenging regulatory and price environment, and feel that the outlook for the industry and the Company hold promise of increased profitability."
The Company remains committed to utilized planned capital expenditures in the ongoing development of its available inventory of natural gas prospects, developing this important domestic energy resource.
ROYALE ENERGY, INC. |
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STATEMENTS OF OPERATIONS |
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FOR THE QUARTER ENDED MARCH 31, 2011 AND 2010 |
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2011 |
2010 |
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(Unaudited) |
(Unaudited) |
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Revenues: |
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Sale of Oil and Gas |
$1,437,559 |
$790,781 |
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Turnkey drilling |
1,195,871 |
724,828 |
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Supervisory Fees and Other |
201,726 |
133,370 |
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Total Revenues |
2,835,156 |
1,648,979 |
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Costs and Expenses: |
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General and Administrative |
1,047,794 |
941,045 |
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Turnkey Drilling and Development |
951,014 |
454,086 |
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Lease Operating |
306,108 |
258,409 |
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Geological and Geophysical Expense |
41,909 |
0 |
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Legal and Accounting |
403,211 |
191,997 |
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Marketing |
180,604 |
150,752 |
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Depreciation, Depletion and Amortization |
529,447 |
239,685 |
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Total Costs and Expenses |
3,460,087 |
2,235,974 |
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Gain on Sale of Assets |
785,132 |
0 |
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Income (Loss) From Operations |
160,201 |
(586,995) |
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Other Income (Expense): |
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Interest expense |
(38,218) |
(5,509) |
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Income (Loss) Before Income Tax Expense |
121,983 |
(592,504) |
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Income Tax Provision (Benefit) |
45,130 |
(219,989) |
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Net Income (Loss) |
76,853 |
(372,515) |
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Basic Earnings Per Share: |
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Net Income available to common stock |
0.01 |
(0.04) |
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Diluted Earnings Per Share |
0.01 |
(0.04) |
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Other Comprehensive Income |
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Unrealized Gain (Loss) on Equity Securities |
0 |
$156,480 |
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Other Comprehensive Income (Loss), before tax |
0 |
156,480 |
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Income Tax Expense (Benefit) Related to Items of |
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Other Comprehensive Income |
0 |
105,416 |
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Other Comprehensive Income, net of tax |
0 |
51,064 |
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Comprehensive Income (Loss) |
76,853 |
(321,451) |
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The above is selected financial information that should be read in conjunction with the notes, and disclosures available in the company's 10K filing.
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.
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