SAN DIEGO, Dec. 13, 2011 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today announced that the State of Alaska has posted the results of the North Slope lease sale 2011 in which the company successfully acquired more than 100,000 acres. Out of 13 companies bidding on 178 tracts, Royale won 60 tracts in the heart of the oil window. The company's 100,480 acre position represents 30% of the 334,969 acres leased in this sale.
The company selected the targeted acreage based upon optimal thermal maturity for oil generation in the Shublik shale, known to have sourced the Prudhoe Bay oil field. Additional potential exists in the Kingak and HRZ shale sections. Based upon existing well penetrations through the Shublik, Royale quantified the selection criteria for the desired acreage. "This well control demonstrates the capacity of the Shublik to generate and flow oil," said Mohamed Abdel-Rahman, Royale's VP Exploration. "Our acreage spans over 88 miles east and west of the Trans-Alaska oil pipeline route and is 22 miles south of giant Prudhoe Bay oil and gas field, in the heart of the thermal maturity fairway for oil generation."
Royale's position consists of three separate blocks of contiguous tracts. The western block is adjacent to the Colville River and holds potential for both conventional as well as shale development. The central block is in the midst of an active test program being conducted by a joint venture between Halliburton and Great Bear Petroleum and is near the Trans-Alaska pipeline. The eastern block consists of 40,320 acres known to sit on the migration path of the oil that filled Prudhoe Bay.
"This acquisition has the potential of being a continuous accumulation of oil produced from shale," said Donald Hosmer, Royale's Co-CEO, "providing a large number of repeatable drilling opportunities that can lead to significant and extended reserve growth for Royale Energy."
About the Company
Headquartered in San Diego, Royale Energy, Inc. is an independent energy company. The company is focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains. It has been a leading independent producer of oil and natural gas for over 20 years. The company's strength is continually reaffirmed by investors who participate in funding over 50% of the company's new projects. Additional information about Royale Energy, Inc. is available on its web site at www.royl.com.
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.