SAN DIEGO, Oct. 28, 2015 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (NASDAQ:ROYL) today announced its third quarter 2015 results, in which it posted $21,372 in operating income for the three months ending September 30, 2015 despite the worst energy market in recent history. This accomplishment overcomes a sharp decline in natural gas prices and declining production.
In response to the deterioration of the sector, Royale has been able to reduce General and Administrative expenses by over 17% from the same quarter last year, and has achieved an 11% reduction in Lease Operating expenses for the three months ending September 30, 2015 when compared to the same period in 2014.
The company is optimistic that it can overcome this phase of the industry cycle and emerge stronger and better positioned to capitalize on the future.
“We plan to sell non-core assets and raise additional equity to provide the capital necessary to drill new wells and acquire producing properties,” said Stephen Hosmer the company’s CFO. “This plan is expected to allow us to regain NASDAQ compliance, in the coming months, and become consistently profitable into the foreseeable future.”
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 OPERATIONS | ||||||||||||||||
| FOR THE PERIODS ENDED SEPTEMBER 30, 2015 AND 2014 | ||||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Revenues: | ||||||||||||||||
| Sale of Oil and Gas | $ | 255,179 | $ | 507,784 | $ | 831,472 | $ | 2,077,750 | ||||||||
| Supervisory Fees and Other | 186,616 | 169,475 | 529,082 | 497,379 | ||||||||||||
| Total Revenues | 441,795 | 677,259 | 1,360,554 | 2,575,129 | ||||||||||||
| Costs and Expenses: | ||||||||||||||||
| General and Administrative | 710,239 | 858,137 | 2,397,434 | 2,280,268 | ||||||||||||
| Lease Operating | 218,953 | 248,028 | 803,549 | 969,390 | ||||||||||||
| Delay Rentals | 0 | 2,400 | 49,565 | 34,192 | ||||||||||||
| Lease Impairment | 83,755 | 37,494 | 96,436 | 37,494 | ||||||||||||
| Well Equipment Write Down | 0 | 0 | 19,000 | 0 | ||||||||||||
| Legal and Accounting | 130,037 | 39,030 | 453,935 | 307,433 | ||||||||||||
| Marketing | 94,861 | 133,047 | 240,608 | 263,365 | ||||||||||||
| Depreciation, Depletion and Amortization | 70,018 | 62,880 | 209,238 | 241,015 | ||||||||||||
| Total Costs and Expenses | 1,307,863 | 1,381,016 | 4,269,765 | 4,133,157 | ||||||||||||
| Gain (Loss) on Turnkey Drilling Programs | 887,440 | 562,885 | 903,677 | 959,339 | ||||||||||||
| Gain (Loss) on Sale of assets | 0 | 369,977 | 10,070 | 335,376 | ||||||||||||
| Income (Loss) From Operations | 21,372 | 229,105 | (1,995,464 | ) | (263,313 | ) | ||||||||||
| Other Income (Expense): | ||||||||||||||||
| Interest Expense | (21,766 | ) | (22,792 | ) | (64,495 | ) | (60,085 | ) | ||||||||
| Income (Loss) Before Income Tax Expense | (394 | ) | 206,313 | (2,059,959 | ) | (323,398 | ) | |||||||||
| Net Income (Loss) | $ | (394 | ) | $ | 206,313 | $ | (2,059,959 | ) | $ | (323,398 | ) | |||||
| Basic Earnings Per Share | $ | 0.00 | $ | 0.01 | $ | (0.14 | ) | $ | (0.02 | ) | ||||||
| Diluted Earnings Per Share | $ | 0.00 | $ | 0.01 | $ | (0.14 | ) | $ | (0.02 | ) | ||||||
The notes to unaudited financial statements are an integral part of this financial statement.