SAN DIEGO, Feb. 5, 2014 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today announced that it has begun drilling operations on its Victor Ranch 3-20 well in California's Sacramento Basin. This is the first of four new wells that will be drilled in the 1st quarter of 2014. Two additional natural gas wells are being brought into production this week.
The Cardiff well was drilled in 4th quarter 2013 with a flow rate of 1,700,000 cubic ft per day and the Memento well that was originally completed in a lower zone will now be producing from the main target formation.
California natural gas prices have climbed to a four-year high amid its drought. As the state faces a drought emergency, Pacific Gas and Electric Company has cut hydropower generation in efforts to save water. The lower hydro and nuclear power supplies boosted natural gas-fired generation by 33 percent as the PG&E citygate price has jumped to $8.04 per Mcf. PG&E also said in September that Unit 1 at Diablo Canyon Plant, now California's only nuclear station, will be shut for planned maintenance this spring.
On Alaska's North Slope, the company commenced seismic acquisition operations on 120 square miles over its western acreage block where Royale Energy and Rampart are exploring for both conventional and unconventional oil and natural gas. Rampart announced this week a commitment of $50,000,000 for exploration costs on the project.
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.