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Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: warren harris who wrote (72412)	9/6/2000 10:57:44 AM
From: Wowzer	Read Replies (1) \| Respond to of 95453

I do and I think this is a great little company that has slipped under the radar of most investors. Bought like crazy in the 2 7/8 to 3 range and have sold some on the recent run, but plan to hold the rest and see what happens. Nice press release today as well.. Wednesday September 6, 9:31 am Eastern Time Press Release Royale Energy Finds Oil in California and Several New Natural Gas Discoveries SAN DIEGO--(BUSINESS WIRE)--Sept. 6, 2000--Royale Energy Inc. (Nasdaq:ROYL - news) today released an operational update on activities currently underway by the company, in addition to recent exploration results. Royale announced that it has now successfully drilled and completed two new wells in its Victor Ranch/East Rice Creek field which are now producing at a cumulative rate of 3,800 mcf per day. A third well was logged on September 2nd and has over 30 net feet of natural gas-filled sands. These wells were drilled on proprietary seismic data generated by the company in 1998/1999. The company is currently drilling a fourth well in the field, with anticipated results expected in the 1st half of September. Royale intends to drill another three wells in the field before year end. Royale also announced a successful natural gas well in its McCormick field, identifying a new fault block based upon seismic acquired by the company in 1999. This success creates additional locations within the field that are currently being evaluated. Royale acquired a seismic and acreage position in June within the Pleasant Valley field of Fresno County, Calif. to define and drill a step-out oil well based upon regional well control targeting known oil producing zones. Royale has now drilled its 88-20 well that encountered a minimum of 40 feet of potential oil pay and will bring the well into production in September. Initial flow rates have not yet been determined. Royale plans to drill a second well in the field in the 4th quarter of 2000, and continues to evaluate two more locations. Royale also has acquired a 3D seismic acreage block in Jackson County, Okla. The wells in this area will target Mississippian carbonate mounds that have been identified with 3D seismic data and local well control. The initial wells will be drilled updip of wells with strong oil shows and/or proven oil production. If successful, Royale believes that another 8 to 12 oil wells could be drilled in the field targeting similar seismic features. Don Hosmer, president of Royale Energy commented, ``We are currently experiencing record natural gas prices in California. Our September natural gas is being sold at $6.55 per mcf. We are taking advantage of the current strength in commodity prices and the resulting cash flow generated to increase our capital expenditures and drilling schedule through the remainder of the year.'' He further commented, ``Our recent success in our Victor Ranch/East Rice Creek Field has validated our exploration strategy, and the investment that we made into the seismic data in 1998 and 1999. We plan to increase our oil reserves through some of our recent activities and continue to explore options to increase our rates of growth including potential acquisitions and exploration projects.'' Royale Energy is an independent producer of natural gas and oil primarily in California. Headquartered in San Diego, the company applies modern computer-aided exploration technologies in the exploration and development of oil and/or natural gas. 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.