SAN DIEGO, Aug. 5, 2013 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today announced financial results for second quarter 2013, reporting a Net Income of $1,905,595 or 14 cents per basic and fully diluted share. The favorable results are highlighted by comparison to a loss of $1,316,724 for the same period in 2012, representing a turnaround of $3,222,319.
The quarterly results bring the full year to a positive result of $549,798 in Net Income compared to a loss of $2,683,579 in the first half of 2012, a $3,233,377 improvement.
"We are pleased that the progress we have made on the Alaska North Slope oil shale property has strengthened our financial position significantly," said Stephen Hosmer, "We are looking forward to ongoing contribution of this property to our overall strategy and financial results."
Royale is currently engaged in drilling two natural gas wells in California's Sacramento Basin and expects to drill three additional wells in the fourth quarter. With the success of the company's Dorset and Zodiac wells, which are now on production, total gas production is on the rise at the same time city-gate gas prices are climbing.
In other areas, the company has reached an agreement for the drilling of several oil wells on its property in the Fuhrman-Mascho field of the Permian basin of Texas. Royale will receive an Overriding Royalty and a portion of the Working Interest in up to eight wells, with the commencement of drilling by the end of this year.
Alaska North Slope acreage is continuing to advance with the expectation that an agreement will be signed within the month to acquire seismic data over both the Western and Central Blocks, with all costs to be borne by Rampart Energy. Executive from both companies meet with key state officials last month and are encouraged by the welcome environment the state offers.
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.
| Contact: |
| Royale Energy, Inc. |
| Chanda Idano, Director of Marketing & PR |
| 619-881-2800 |
| chanda@royl.com |
| http://www.royl.com |
|
ROYALE ENERGY, INC. STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
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| Three Months Ended June 30, | Six Months Ended June 30, | |||
| 2013 | 2012-restated | 2013 | 2012-restated | |
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |
| Revenues: | ||||
| Sale of Oil and Gas | $ 457,101 | $ 370,950 | $ 787,996 | $ 867,844 |
| Turnkey drilling | 893,667 | 0 | 893,667 | 0 |
| Supervisory Fees and Other | 184,267 | 164,863 | 325,038 | 369,547 |
| Total Revenues | 1,535,035 | 535,813 | 2,006,701 | 1,237,391 |
| Costs and Expenses: | ||||
| General and Administrative | 696,201 | 991,495 | 1,556,214 | 2,011,447 |
| Turnkey Drilling and Development | 498,700 | 119,758 | 541,843 | 190,158 |
| Lease Operating | 241,128 | 310,821 | 533,950 | 606,331 |
| Lease Impairment | 0 | 181,627 | 0 | 181,627 |
| Geological and Geophysical Expense | 0 | 63,657 | 0 | 422,686 |
| Inventory Write Down | 0 | 0 | 0 | 62,744 |
| Legal and Accounting | 80,833 | 149,572 | 252,464 | 419,875 |
| Marketing | 65,095 | 171,922 | 102,721 | 326,141 |
| Depreciation, Depletion and Amortization | 239,904 | 373,657 | 461,264 | 737,119 |
| Total Costs and Expenses | 1,821,861 | 2,362,509 | 3,448,456 | 4,958,128 |
| Gain on Sale of Assets | 2,294,920 | 430 | 2,294,920 | 1,737 |
| Income (Loss) From Operations | 2,008,094 | (1,826,266) | 853,165 | (3,719,000) |
| Other Income (Expense): | ||||
| Interest Expense | (102,499) | (35,624) | (303,367) | (68,362) |
| Income (Loss) Before Income Tax Expense (Benefit) | 1,905,595 | (1,861,890) | 549,798 | (3,787,362) |
| Income tax provision (benefit) | 0 | (545,166) | 0 | (1,103,783) |
| Net Income (Loss) | $ 1,905,595 | $ (1,316,724) | $ 549,798 | $ (2,683,579) |
| Basic Earnings (Loss) Per Share | $ 0.14 | $ (0.12) | $ 0.04 | $ (0.24) |
| Diluted Earnings (Loss) Per Share | $ 0.14 | $ (0.12) | $ 0.04 | $ (0.24) |
| Other Comprehensive Income | ||||
| Unrealized Gain on Equity Securities | $ 0 | $ 0 | $ 0 | $ 342 |
| Other Comprehensive Income, before tax | 0 | 0 | 0 | 342 |
| Income Tax Expense Related to Items of Other Comprehensive Income | 0 | 0 | 0 | 99 |
| Other Comprehensive Income, net of tax | 0 | 0 | 0 | 243 |
| Comprehensive Income (Loss) | $ 1,905,595 | $ (1,316,724) | $ 549,798 | $ (2,683,336) |
See notes to unaudited financial statements