SAN DIEGO, May 6, 2015 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today announced that it has reached an agreement to drill up to 30 wells in the Ballinger Oil Field in Runnels County, TX with three initial wells to be drilled immediately into the Ellenberger formation.
Current production in the field comes from the Palo Pinto North formation and the current interval of oil production is at 3,400 ft. which is a limestone with both primary, secondary and fracture porosity zones. From an estimated 4.75 million barrels of oil in place only 350,000 have been produced to date. Existing well spacing points to a significant potential for infill drilling by either vertical or horizontal wells, to produce the proven oil accumulation that was not accessed by the initial field development.
Additional potential estimated at over 6 million barrels of oil and 7.6 BCF of gas with an estimated 20% recovery exists in other formations below the Palo Pinto North that include the Cross-cut sandstone at 3,500 ft., the Upper Capps Fm., at 3,700 ft., the Jennings Fm. at 4,000 ft. and the Gardner Fm. at 4,100 ft., that are all potentially prospective sandstone or limestone lithofacies that either lie behind pipe in the existing wells or have not been penetrated over most of the acreage. All these formations have produced oil at various locals in the surrounding acreage and will be targeted in all of Royale's future drilling.
The deepest prospective target in the area is the Ellenberger formation at approximately 4,400 ft. It was not targeted for development in the surrounding leases but was penetrated by a 1947 well that lies 1.5 miles NE of the acreage and drill stem tested 580 ft. of oil show and 40 MCFG/D but was completed as an oil producer from a shallower target.
There are also shallower prospective formations at around 2,900 ft. that are not quantified such as the Serratt Sandstone and the Canyon Sands but have produced oil from two wells in the vicinity.
The company's Nugget well went into production on April 30, 2015, flowing on a 4/64th's choke at 600 Mcf/day and 1,500 psi. Subsequently, the choke was opened to 6/64th's for 800 Mcf/day and 1,650 psi. Three additional zones remain behind pipe and will be completed at a later date.
The PG&E Citygate daily price for 5-5-15 flow date is $3.13 per Mcf making it the highest North American price for natural gas.
Royale has permitted five additional wells to be drilled in the Sacramento Basin.
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.