SAN DIEGO, Oct. 3, 2012 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) announced today that it will resume drilling operations at its Sacramento Basin Natural Gas field where the company has drilled 20 producing wells.
Following the acquisition of a new 3D seismic survey that extended its data earlier this year, Royale has identified up to 14 new prospects. The new wells will be drilled on both the existing data and the new 3D seismic.
Permits have been filed and approval is expected by October 17th for the Garnet and Dorset prospects in Colusa County, California where Royale drilled its successful Goddard wells.
"The timing of the wells approval could not be better since natural gas prices have risen 27% since September 1st," said Stephen Hosmer the company's Co-CEO. "We plan to have these wells on production in time for peak winter demand." Current PG&E Citygate prices, the index where the majority of Royale's gas is sold, have risen from $3.06 per MCF on September 1st to $3.89 per MCF on October 2nd, allowing the company to increase cash flow and future earnings with new productive wells.
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.