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 | ) | |||||||