SAN DIEGO, May 16, 2013 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today announced financial results for the first quarter of 2013, highlighting increased Cash Flow from Operations. As a result of its efforts to reduce costs during the recent cycle of lower gas prices and production, the company decreased its Net Loss of $1,365,668 or $(0.13) per share for the first quarter of 2012 to $1,355,797 or $(0.11) per share for the same period in 2013. While Total Revenues declined 32.8% from $701,578 in Q1 2012 to $471,666 in Q1 2013, the reduction of bank debt and G&A expenses lifted Cash Flow from Operations from $303,522 in the first quarter of 2012 to $401,190 in 2013. The first quarter's Cash Flow from Operation represents a 77% improvement over the full year's 2012 Cash Flow from Operation of $226,193.
Improvement in the industry has seen natural gas prices rise in recent days to a high of $4.45 per MCF compared to last year's low of $2.27 per MCF. Price strength together with production increases from Royale's Magnum and Pacific 1-3 wells and the recently drilled Dorset discovery, (expected to begin production this month) will add significantly to the company's overall revenue and income in the coming quarters.
Additional production is expected from the upcoming four well drilling program commencing on May 15. The company plans to begin drilling the Zodiac well, followed by two wells located within its recently acquired 3D seismic as well as a follow up well to the Dorset discovery.
Royale's Alaska property is continuing to hold promise as the company readies the agreement it announced on April 10, 2013.
"We are pleased with the progress we have made with our prospective partner," said Stephen Hosmer, "so we can formalize our plans for seismic and drilling for this exciting property."
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.