Royale Energy Enhances Stake in Pradera Fuego Project
Royale Energy, Inc. (OTCQB: ROYL) recently announced a significant development for its operations, with the completion of a farm-out agreement. This agreement grants Royale an additional 2.5% working interest in the expansive 17,000-acre Pradera Fuego project in Texas, operated by Ares Energy. With this expanded stake, Royale and its direct interest owner investors now hold a total of 7.5% non-operated working interest, which includes both producing and non-producing acreage.
Expansion Details and Benefits
This farm-out agreement, made with an entity controlled by Johnny Jordan, the Chief Executive Officer of Royale Energy, marks a strategic move to bolster the company’s growth potential. The Pradera Fuego asset is emblematic of a solid development pipeline for Royale, featuring a total of 39 future drilling locations in Barnett and 44 in Woodford. This expansion is expected to support long-term growth plans and solidify Royale’s investor-driven drilling programs. In the upcoming 12 months, Royale anticipates drilling four new wells, which could enhance its production capabilities significantly.
Current Production and Performance
Currently, Royale Energy retains an interest in all eight producing Barnett wells located within the Pradera Fuego project. These wells collectively contribute to production figures of approximately 3,583 gross BOEPD (barrels of oil equivalent per day), with 201 net BOEPD attributed to Royale and its direct working interest investors. The most recent of these wells, named the Irma 1H, has exhibited promising early results. It was drilled, completed, and is now flowing at a notable rate of 1,196 BOEPD, all achieved with a 50/64” choke size. These results are in line with the strong performance seen across the project’s other producing wells, showcasing the asset’s consistent productivity.
CEO Commentary on the Project's Prospects
Speaking on the promising results from the Pradera Fuego project, Johnny Jordan expressed confidence about the future. He stated, “The Pradera Fuego project continues to deliver exceptional results and represents a valuable source of long-term growth for Royale and our shareholders.” This sentiment reflects the optimism surrounding the project and its potential to enhance shareholder value moving forward.
Overview of Royale Energy, Inc.
Headquartered in San Diego, California, Royale Energy, Inc. (OTCQB: ROYL) is an independent exploration and production company. The organization is dedicated to the acquisition, development, and marketing of oil and natural gas, predominantly operating within Texas’s Permian Basin. The focus on diverse production opportunities allows Royale to harness the robust market dynamics associated with energy resources.
Frequently Asked Questions
What is the recent development announced by Royale Energy?
Royale Energy has completed a farm-out agreement, acquiring an additional 2.5% working interest in the Pradera Fuego project.
Who operates the Pradera Fuego project?
The Pradera Fuego project is operated by Ares Energy.
What is the total interest Royale Energy holds in the Pradera Fuego project?
Royale Energy, along with its investors, now holds a 7.5% non-operated working interest in the project.
How many future drilling locations are planned in the Pradera Fuego project?
The project includes 39 potential drilling locations in Barnett and 44 in Woodford.
What is the production rate from the Irma 1H well?
The Irma 1H well is currently flowing at 1,196 BOEPD.
