Royale Energy Announces Positive Operating Income for the 4th Quarter 2015


SAN DIEGO, March 15, 2016 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (OTCQB:ROYL) announced today its second consecutive quarter of positive operating income. For the 4th Quarter of 2015, Royale reported an operating profit of $70,736 compared to an operating profit of $21,372 for the 3rd Quarter of 2015. This improvement quarter over quarter comes despite a 14% decline in natural gas prices during the period. Additionally, Royale improved its quarterly operating income by $1,877,674 when compared to the 4th quarter operating loss of $1,806,938 in 2014.  For the year ended December 31, 2015, Royale reported an improvement of $141,040 in its net loss from $2,151,856 in 2014 to $2,010,816 in 2015, or a $0.13 loss per share basic and diluted.  Despite declining production and commodity prices, Royale was able to turn its operations around by decreasing expense, increasing turnkey drilling activities, and selling certain non-core operational assets. 

As Royale moves forward in this challenging oil and gas price environment, it remains focused on reducing its operating and administrative costs while continuing to strengthen its balance sheet. Management continues to pursue joint ventures that complement and expand Royale’s drilling opportunities. These joint ventures allow Royale to acquire oil and gas properties with low-cost developments and long term upside potential. 

Royale is currently in the process of completing a well in California’s Sacramento Basin, and it anticipates drilling an additional five wells in 2016.

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.


ROYALE ENERGY, INC. 
STATEMENTS OF COMPREHENSIVE LOSS 
FOR THE YEARS ENDED DECEMBER 31, 2015, AND 2014 
       
  2015  2014 
Revenues:      
Sale of Oil and Gas $1,018,928  $2,598,297 
Supervisory Fees and Other  694,160   623,201 
         
Total Revenues  1,713,088   3,221,498 
         
Costs and Expenses:        
General and Administrative  3,181,571   3,162,113 
Lease Operating  1,000,769   1,427,673 
Delay Rentals  448,313   616,806 
Lease Impairment  424,163   268,093 
Well Equipment Write Down  60,960   - 
Bad Debt Expense  536,538   653,133 
Legal and Accounting  558,471   401,160 
Marketing  326,143   430,779 
Depreciation, Depletion and Amortization  400,813   315,574 
         
Total Costs and Expenses  6,937,741   7,275,331 
         
Gain on Turnkey Drilling Programs  2,330,969   1,640,731 
Gain on Sale of Assets  968,956   342,851 
         
Loss from Operations  (1,924,728)  (2,070,251)
         
Other Expense:        
Interest Expense  (86,088)  (81,605)
         
Loss Before Income Tax Expense  (2,010,816)  (2,151,856)
         
Provision for Income Taxes  -   - 
Net Loss  (2,010,816)  (2,151,856)
         
Basic Loss Per Share  (0.13)  (0.14)
         
Diluted Loss Per Share  (0.13)  (0.14)
         
Other Comprehensive Income (Loss)        
Unrealized Loss on Equity Securities  -   16,448 
Less: Reclassification Adjustment for Losses Included in Net Income  (6,503)  - 
         
Other Comprehensive Gain (Loss) before tax  6,503   (16,448)
         
Other Comprehensive Gain (Loss), net of tax  6,503   (16,448)
         
Comprehensive Loss  (2,004,313)  (2,168,304)


ROYALE ENERGY, INC.
STATEMENTS OF OPERATIONS
FOR THE FOUR QUARTERS ENDED DECEMBER 31, 2015
           
  Three Months Ended YTD
  March 31, June 30, September 30, December 31, December 31,
   2015   2015   2015   2015   2015 
  (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
           
Revenues:          
  Sale of Oil and Gas $294,309  $281,984  $255,179  $187,456  $1,018,928 
  Supervisory Fees and Other  175,760   166,706   186,616   165,078   694,160 
           
  Total Revenues  470,069   448,690   441,795   352,534   1,713,088 
           
Costs and Expenses:          
  General and Administrative  828,944   858,251   710,239   784,137   3,181,571 
  Lease Operating  314,792   269,804   218,953   197,220   1,000,769 
  Delay Rentals  29,128   20,437   -   398,748   448,313 
  Lease Impairment  12,681   -   83,755   327,727   424,163 
  Well Equipment Write Down  19,000   -   -   41,960   60,960 
  Bad Debt Expense  -   -   -   536,538   536,538 
  Legal and Accounting  224,476   99,422   130,037   104,536   558,471 
  Marketing  76,988   68,759   94,861   85,535   326,143 
  Depreciation, Depletion and
Amortization
  74,791   64,429   70,018   191,575   400,813 
           
  Total Costs and Expenses  1,580,800   1,381,102   1,307,863   2,667,976   6,937,741 
           
Gain (Loss) from Turnkey Drilling
Programs
 -   16,237   887,440   1,427,292   2,330,969 
Gain (Loss) from Sale of Assets  -   10,070   -   958,886   968,956 
           
  Income (Loss) From
Operations
  (1,110,731)  (906,105)  21,372   70,736   (1,924,728)
           
Other Income (Expense):          
  Interest Expense  (21,185)  (21,544)  (21,766)  (21,593)    (86,088)
           
Income Before Income Tax Expense  (1,131,916)  (927,649)  (394)  49,143   (2,010,816)
Income tax provision  -   -   -   -   - 
           
Net Income (Loss) ($1,131,916) ($927,649) ($394) $49,143  ($2,010,816)
           
Basic Earnings Per Share ($0.08) ($0.06) $0.00  $0.00  ($0.13)
           
Diluted Earnings Per Share: ($0.08) ($0.06) $0.00  $0.00  ($0.13)



            

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