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Royale Energy Announces Positive Operating Income for the 4th Quarter 2015

SAN DIEGO, March 15, 2016 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (OTCQB:ROYL) announced today its second consecutive quarter of positive operating income. For the 4th Quarter of 2015, Royale reported an operating profit of $70,736 compared to an operating profit of $21,372 for the 3rd Quarter of 2015. This improvement quarter over quarter comes despite a 14% decline in natural gas prices during the period. Additionally, Royale improved its quarterly operating income by $1,877,674 when compared to the 4th quarter operating loss of $1,806,938 in 2014. For the year ended December 31, 2015, Royale reported an improvement of $141,040 in its net loss from $2,151,856 in 2014 to $2,010,816 in 2015, or a $0.13 loss per share basic and diluted. Despite declining production and commodity prices, Royale was able to turn its operations around by decreasing expense, increasing turnkey drilling activities, and selling certain non-core operational assets.

As Royale moves forward in this challenging oil and gas price environment, it remains focused on reducing its operating and administrative costs while continuing to strengthen its balance sheet. Management continues to pursue joint ventures that complement and expand Royale’s drilling opportunities. These joint ventures allow Royale to acquire oil and gas properties with low-cost developments and long term upside potential.

Royale is currently in the process of completing a well in California’s Sacramento Basin, and it anticipates drilling an additional five wells in 2016.

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 LOSS
FOR THE YEARS ENDED DECEMBER 31, 2015, AND 2014
2015 2014
Revenues:
Sale of Oil and Gas $1,018,928 $2,598,297
Supervisory Fees and Other 694,160 623,201
Total Revenues 1,713,088 3,221,498
Costs and Expenses:
General and Administrative 3,181,571 3,162,113
Lease Operating 1,000,769 1,427,673
Delay Rentals 448,313 616,806
Lease Impairment 424,163 268,093
Well Equipment Write Down 60,960 -
Bad Debt Expense 536,538 653,133
Legal and Accounting 558,471 401,160
Marketing 326,143 430,779
Depreciation, Depletion and Amortization 400,813 315,574
Total Costs and Expenses 6,937,741 7,275,331
Gain on Turnkey Drilling Programs 2,330,969 1,640,731
Gain on Sale of Assets 968,956 342,851
Loss from Operations (1,924,728) (2,070,251)
Other Expense:
Interest Expense (86,088) (81,605)
Loss Before Income Tax Expense (2,010,816) (2,151,856)
Provision for Income Taxes - -
Net Loss (2,010,816) (2,151,856)
Basic Loss Per Share (0.13) (0.14)
Diluted Loss Per Share (0.13) (0.14)
Other Comprehensive Income (Loss)
Unrealized Loss on Equity Securities - 16,448
Less: Reclassification Adjustment for Losses Included in Net Income (6,503) -
Other Comprehensive Gain (Loss) before tax 6,503 (16,448)
Other Comprehensive Gain (Loss), net of tax 6,503 (16,448)
Comprehensive Loss (2,004,313) (2,168,304)


ROYALE ENERGY, INC.
STATEMENTS OF OPERATIONS
FOR THE FOUR QUARTERS ENDED DECEMBER 31, 2015
Three Months Ended YTD
March 31, June 30, September 30, December 31, December 31,
2015 2015 2015 2015 2015
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Audited)
Revenues:
Sale of Oil and Gas $294,309 $281,984 $255,179 $187,456 $1,018,928
Supervisory Fees and Other 175,760 166,706 186,616 165,078 694,160
Total Revenues 470,069 448,690 441,795 352,534 1,713,088
Costs and Expenses:
General and Administrative 828,944 858,251 710,239 784,137 3,181,571
Lease Operating 314,792 269,804 218,953 197,220 1,000,769
Delay Rentals 29,128 20,437 - 398,748 448,313
Lease Impairment 12,681 - 83,755 327,727 424,163
Well Equipment Write Down 19,000 - - 41,960 60,960
Bad Debt Expense - - - 536,538 536,538
Legal and Accounting 224,476 99,422 130,037 104,536 558,471
Marketing 76,988 68,759 94,861 85,535 326,143
Depreciation, Depletion and
Amortization
74,791 64,429 70,018 191,575 400,813
Total Costs and Expenses 1,580,800 1,381,102 1,307,863 2,667,976 6,937,741
Gain (Loss) from Turnkey Drilling
Programs
- 16,237 887,440 1,427,292 2,330,969
Gain (Loss) from Sale of Assets - 10,070 - 958,886 968,956
Income (Loss) From
Operations
(1,110,731) (906,105) 21,372 70,736 (1,924,728)
Other Income (Expense):
Interest Expense (21,185) (21,544) (21,766) (21,593) (86,088)
Income Before Income Tax Expense (1,131,916) (927,649) (394) 49,143 (2,010,816)
Income tax provision - - - - -
Net Income (Loss) ($1,131,916) ($927,649) ($394) $49,143 ($2,010,816)
Basic Earnings Per Share ($0.08) ($0.06) $0.00 $0.00 ($0.13)
Diluted Earnings Per Share: ($0.08) ($0.06) $0.00 $0.00 ($0.13)


Contact: Royale Energy, Inc. Chanda Idano Director of Marketing & PR 619-383-6600 chanda@royl.com http://www.royl.com

Source: Royale Energy