SAN DIEGO, Aug. 26, 2013 (GLOBE NEWSWIRE) -- Royale Energy Inc. (Nasdaq:ROYL) has released a third-party estimate of its North Slope acreage.
At an average recovery rate of nearly 5 percent and mean oil-in-place of some 80,473 barrels per acre, the three source rock intervals underlying the 96,882-acre leasehold would yield 3,995 barrels per acre, according to Netherland, Sewell & Associates, Inc.
The global consulting firm provided an oil-in-place range of 14,288 to 167,220 barrels per acre for the acreage, which would yield recovery of 632 to 8,473 barrels per acre.
With spacing at 160 acres per well, the mean estimate would yield an average estimated ultimate recovery rate of 639,119 barrels per well. By comparison, the U.S. Energy Information Administration Annual Energy Outlook 2012 provided average EURs of 550,000 barrels for a Bakken formation well and 280,000 for an Eagle Ford shale well.
The San Diego-based Royale Energy is developing its acreage with Australia-based Rampart Energy Ltd. The farm-in deal initially calls for Rampart to fund two wells with horizontal laterals in the 39,539-acre Western Block of the acreage by March 31, 2015.
The report estimates this block contains a mean EUR of nearly 158 million barrels.
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.