SAN DIEGO, March 11, 2014 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq: ROYL ) today announced the filing of its annual financial report (form 10K), in which the company reported Net Income of $1,149,153 or 8 cents per basic (and fully diluted) share for the year ended December 31, 2013. Oil & Natural Gas Revenue increased year over year from $1,673,538 in 2012 to $1,913,364 in 2013 or 14% mainly due to increased Natural Gas prices.
As a result of the company's ongoing cost cutting efforts, total expenses decreased by $1,503,792 or 20% from 2012 to 2013. During the same period, Royale drilled 6 wells compared to drilling only 2 in 2012, and successfully completed 4 wells. In addition to cutting costs, the company also paid off all of its outstanding reserve based debt.
"We have been monitoring the relative weakness of Natural Gas in the larger energy market, and timed our increased drilling activity to correspond with the strengthening trend in the sector," said Stephen Hosmer, the company's Co-CEO.
The company will drill three more Natural Gas wells over the next 90 days in California's Sacramento basin based upon existing proprietary 3D seismic data acquired in 2012.
With the recent announcement of it completed Alaska 3D seismic data acquisition, the company is on schedule to commence drilling in Alaska in January 2015.
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 INCOME (LOSS) | ||
| FOR THE YEARS ENDED DECEMBER 31, 2013, AND 2012 | ||
| 2012- | ||
| 2013 | Restated | |
| Revenues: | ||
| Sale of Oil and Gas | $ 1,913,364 | $ 1,673,538 |
| Supervisory Fees and Other | 659,697 | 692,344 |
| Total Revenues | $ 2,573,061 | $ 2,365,882 |
| Costs and Expenses: | ||
| General and Administrative | 3,279,505 | 3,640,336 |
| Lease Operating | 936,631 | 1, 090,948 |
| Delay Rentals | 457,554 | 48,802 |
| Lease Impairment | 70,203 | 145,461 |
| Geological and Geophysical | 50,145 | 423,459 |
| Inventory Write Down | 39,185 | 62,744 |
| Bad Debt Expense | 146,704 | 263,767 |
| Legal and Accounting | 326,270 | 518,511 |
| Marketing | 332,482 | 594,118 |
| Depreciation, Depletion and Amortization | 309,806 | 664,131 |
| Total Costs and Expenses | $ 5,948,485 | $ 7,452,277 |
| Gain on Turnkey Drilling Programs | 2,008,734 | 763,461 |
| Gain on Sale of Assets | 2,820,315 | 8,100 |
| Income (Loss) from Operations | 1,453,625 | (4,314,834) |
| Other Income (Expense): | ||
| Interest Expense | (304,472) | (195,009) |
| Gain on sale of Marketable Securities | 0 | 7,048 |
| Income Before Income Tax Expense | 1,149,153 | (4,502,795) |
| Income Tax Provision (Benefit) | 0 | (9,187,821) |
| Net Income (Loss) | $ 1,149,153 | $ (13,690,616) |
| Basic Earnings (Loss) Per Share: | $ 0.08 | $ (1.23) |
| Diluted Earnings (Loss) Per Share | $ 0.08 | $ (1.23) |
| Other Comprehensive Income (Loss) | ||
| Unrealized Gain on Equity Securities | $ 9,945 | $ 0 |
| Less: Reclassification Adjustment for Gains Included in Net Income | 0 | (3,035) |
| Other Comprehensive Income (Loss) , before tax | 9,945 | (3,035) |
| Other Comprehensive Income (Loss), net of tax | 9,945 | (3,035) |
| Comprehensive Income (Loss) | $ 1,159,098 | $(13,693,651) |
The accompanying notes are an integral part of these financial statements.
Royale Energy, Inc. Chanda Idano, Director of Marketing & PR 619-881-2800 http://www.royl.com
