John... Royale's six month reporting is out, more quiet progress. They had another good report with production up, earnings up and with more 3D prospects in store, they should outperform again for the rest of the year..
Wayne (report follows..)
Thursday August 13, 9:29 am Eastern Time
Company Press Release
Royale Energy Continues to Increase Earnings
SAN DIEGO--(BUSINESS WIRE)--Aug. 13, 1998--Royale Energy Inc. (NASDAQ:ROYL - news) announced today a net income for the first six months of 1998 of $674,239 or 18 cents per share basic, compared to net income of $516,371 or 13 cents per share reported in 1997, a 30.6% increase.
Total revenues were $4,517,090 compared to $4,063,828 for the first half of 1997, an 11.2% increase.
The company reported a net income of $567,944 or 15 cents per share for the second quarter of 1998 ending June 30, 1998, compared to second quarter 1997 income of $448,332 or 11 cents per share. Second quarter revenues in the 3 months ending June 30, 1998, were $3,025,311 compared to $2,520,193 for the second quarter of 1997.
The first half of 1998 has been the most productive year for the company. Company operated natural gas sales averaged more than 20,000 MCF per day. Natural gas prices have stayed above $2.00 per MCF and are currently over $2.30 for August deliveries. Additional production has just been put on line at Bowerbank 9 and 10 wells and production has been increased at Bowerbank 5B, 6 and 7, following the company's installation of a new 4 1/2 mile pipeline. The recently drilled Bowerbank 12 will be hooked up next week and the Snowbird and North Lathrop wells should begin production in September after completion of the gathering lines.
The 33 square miles of proprietary 3-D seismic has been acquired at Arbuckle in Colusa County, and processing is currently being done. Three locations are being permitted.
A 3-D seismic survey is being conducted on Hastings Ranch and Denverton Creek acreage and should be processed this fall, giving the company a solid inventory of drillable prospects going into the second half of 1998.
Statements concerning future financial results, production, expenditures and other items are forward-looking statements. These statements are based on assumptions concerning commodity prices, drilling results and other factors that management believes are reasonable based on currently available information; however, management's assumptions and the company's future performance are both subject to a wide range of business risks, and there is no assurance that these goals and projections can or will be met. Further information is available in the company's filings with the Securities and Exchange Commission, copies of which are available upon request from the company's investor relations department.
Royale Energy Inc.
Statements Of Income
Six Months Ended June 30,
1998 1997
(Unaudited) (Unaudited)
Revenues:
Sale of oil and gas $2,183,887 $916,123
Gas distribution 0 46,925
Turnkey drilling 2,121,902 2,907,923
Supervisory fees and other 211,301 192,857
Total Revenues 4,517,090 4,063,828
Costs and Expenses:
General and administrative 827,462 668,732
Turnkey drilling and development 1,052,706 1,675,291
Cost of gas distribution sales 0 23,741
Lease operating 574,021 209,826
Lease impairment 200,000 100,000
Legal and accounting 362,979 301,050
Marketing 188,227 247,313
Depreciation, depletion and
amoritization 488,891 237,054
Total Costs and Expenses 3,694,286 3,463,007
Income From Operations 822,804 600,821
Other Expense:
Interest 143,524 23,300
Income Before Income Tax
Expense 679,280 577,521
Income tax expense 5,041 61,150
Net Income $674,239 $516,371
Diluted Earnings Per Share $0.17 $0.13
Basic Earnings Per Share $0.18 $0.13 |
