Royale Energy Boosts Cash Flow 55%
Royale Energy, Inc. (NASDAQ:ROYL) announced for the first quarter 2008 (ending March 31), the company expanded cash flow from operating activities, improving from $481,584 or 6 cents per share in 2007 to $746,608 or 9 cents per share in 2008.
The company’s oil and gas reserves are up 28%, with an increase in volume and price anticipated in the second quarter of 2008.
Royale Energy continued to bring down costs while improving cash flow and production. General administration expenses were reduced by 15.6% with lease operating expense down 13.5%.
The company’s share price is currently traded at a significant discount to industry average for cash flow per share. Cash flow per share for the four trailing quarters has increased to $4,692,036 resulting in a 5.73 multiple to its 59 cents per share. Generally, the industry sector trades at 7 to 10 times cash flow.
The company’s CFO, Stephen Hosmer commented, “We expect the increase in production together with higher product prices to provide a marked increase in 2008 earnings and cash flow, which will continue to fund our exploration activities.”
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.