New Natural Gas Production Begins at Royale Energy’s Gobel Well
Royale Energy, Inc. (NASDAQ: ROYL) began sales of natural gas from its new Gobel 21-1 well in the Company’s Sacramento basin Lonestar field.
Production is from just one of three producing formations. The two remaining zones are behind pipe and will be completed and produced at a later date. Flowing tubing pressure is a strong 1,700 lbs per square inch with a rate of 700,000 cubic ft. per day on an 8/64 choke. The choke will be opened to a 10/64, potentially increasing the rate to approximately 850,000 cubic ft. per day. The Gobel well looks very similar to the nearby Parks well that has been producing at a similar rate and pressure since August 2007.
Permits are being obtained to drill seven new wells in California’s Sacramento Basin during Royale Energy’s second and third quarter.
“We are extremely encouraged by the significant new production in these wells,” notes Royale Energy CEO and President, Donald Hosmer. “This not only expands our current production and revenue levels but also gives us confidence in future production growth with our nearby large inventory of prospects.”
On April 1st, Royale Energy received $10.08 per MCF for its natural gas, up from $5.76 MCF last fall. All of Royale’s natural gas is un-hedged and is sold on a daily cash spot market price at the PG&E City Gate.
The new Weber 25-25 well has been put on production. Fluid levels and oil cut, if any will be monitored to determine if the well produces at economic rates.
Winter weather and heavy snow halted production and completion operations in Utah. With the arrival of spring, the Company is excited to resume operations and will provide updates as available.
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.