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Royale Energy Begins Drilling Operations on High Potential V-Canyon 20-2 Well in Utah

Posted on: Wednesday, 24 September 2008, 09:00 CDT

Royale Energy, Inc. (NASDAQ:ROYL) announces it has begun drilling operations on the V-Canyon 20-2 well in the Northern edge of the Company's natural gas field in Utah. The objective depth is 12,000 ft. to the Entrada formation. The Company expects it will encounter multiple potentially productive zones including the Mesa Verde, Sego, Castlegate, Mancos shale, Dakota, Brushy Basin and the Wingate. The V-Canyon 20-2 is believed to be a high impact, low risk well to drill with a significant upside potential in terms of both long life production and total reserves of natural gas.

The V-Canyon 20-2 is being drilled directionally to the north from the V-Canyon 20-1 pad. Using the V-Canyon 20-1 pad reflects Royale's commitment to reduce the environmental impact of drilling in a wilderness area. Royale's acreage position for the V-Canyon 20-2 offsets a well that recently began production at over 5,000,000 cubic ft per day in the Flat Rock field.

Drilling will be completed by November and the pipeline infrastructure is in place, allowing production to be sold and transported.

In 2007, Royale's focus was to test its 20,000 acre block in the Uintah basin to determine the prospectivity of multiple potentially productive formations within its entire acreage block and building the infrastructure to transport its natural gas production to the markets.

In 2008, after the completion of multiple discoveries and the diversity in productive formations in Utah, Royale has increased the prospects of additional locations on the remaining 20,000 acre block.

The Moon Canyon #2 has established production in the Morrison and Dakota formations and the Ten Mile Canyon to the south has now been fraced and tested in the Dakota. Additional Mancos potential remains behind pipe.

Once the V-Canyon 20-2 is completed, the drilling rig will be moved to drill another Dakota/Buckhorn well in the Company's Moon Canyon field to complete the drilling of its initial four well test project, wrapping up this year's Utah drilling schedule.

About Royale Energy

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.

Source: Business Wire

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