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  • Royale Energy, Inc. (ROYL) Update: Production Coming Online In California As Prices Soar, 3D Seismic On Alaska's North Slope Commences 0 comments
    Feb 5, 2014 6:02 PM | about stocks: ROYL

    Royale Energy, the CA-based oil and gas developer with a solid footprint in the state's San Joaquin and Sacramento basins, in addition to their growing nationwide footprint spanning several key locations in Utah's Uinta Basin (where they have imaged over 22 square miles of 3Dseismic) and the Bayou Bengal JV project with Brigham Exploration down in Texas, gladly announced today that they have begun drilling on their Victor Ranch 3-20 well in the Sacramento Basin.

    The 3-20 is the latest well for ROYL in this superb field, whose production track record stretches back to 1993 with the Victor Ranch 12 (3B cubic feet to date produced and still running). This latest well being drilled is the first in a new four-well series to be put in during Q1 here and the company's success in the past on the site drilling seismic amplitude-supported targets speaks for itself really. Two more gas wells at Victor Ranch are also being brought into production this week according to ROYL, one of which (The Cardiff) was actually completed last quarter in 2013 (reported Dec 13, flowed at 1.78M cubic feet/day), the ninth completed by ROYL in 2013. The second gas well, the Memento, while originally completed for a lower zone identified via the company's proprietary 3D seismic survey, has been set up for production from the main target.

    Accelerating the production envelope in the Sacramento Basin is partially a response to a sharp jump in CA natural gas prices, which have risen to a four-year high, with 2013 having been the driest year in recorded history for many areas of the state as hydro is scaled back due to the oppressive drought conditions. At California's last nuclear plant, Diablo Canyon, Unit 1 was announced by PG&E in September as having production halted this spring for planned maintenance. Overall the picture in CA is very clear and ROYL is wasting no time responding to the situation. Most of the state is in D4/D3 category drought (exceptional/extreme) and the combination of reduced hydro and nuclear inputs has sent natgas-fired generation soaring, up 33%, as PG&E city gate prices hit $8.04 per Mcf.

    Also in the news today from ROYL was a data burst regarding commencement of their ambitious 120 square mile 3D seismic program for the extremely rich North Slope of Alaska (announced Jan 7) with partner Rampart Energy (SAE Exploration awarded 3D Seismic Acquisition contract). Considerable conventional, as well as unconventional, oil and gas targets are in the sights here and Rampart has announced a $50M commitment for exploration costs just this week (Feb 3), signaling the start of major activity that will broaden ROYL's overall footprint nicely.

    More info on Royale Energy, Inc. is available at ROYL.com

    MissionIR provides investor relations services to publicly traded companies in exchange for compensation. This article may be part of our efforts to widen a client's exposure. To read our full disclaimer, visit http://disclaimer.missionir.com

    Stocks: ROYL
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