Royale Energy to Develop Rio Bravo Field
Royale Energy has signed a letter agreement with Matris Exploration Company, LP to acquire 50% of their current interest in the future development of the Rio Bravo field in Kern County, California.
In a move to increase exposure to oil reserve potential, Royale has reached an agreement to fund the future development of the historic Rio Bravo field. The agreement gives Royale the right to develop and drill in the undeveloped portions of the existing field, specifically the unconventional play in the shallower Monterey shale, as well as more conventional deeper reservoirs.
This field fits into Royale's strategy to expand oil reserves within its core area of operations and is situated within five miles from one of the company's primary pipeline delivery points.
The first order of operation will be to complete the Weber 27-27 well in the Monterey shale interval. The Weber well encountered significant oil and gas shows in several intervals within its vertical wellbore prior to being horizontally drilled to test the lowest show.
The Monterey shale is the primary source rock for most of the San Joaquin basin's prolific fields including Elk Hills, Midway/Sunset and Belridge. It has also recently been targeted as a proved unconventional producing horizon. In the North Shafter field, the closest analog to Rio Bravo, Texas Crude, EOG Resources and Cheveron have produced in excess of 7 million barrels of light sweet oil reserves from the Monterey shale to date.
Royale plans to begin work on the Weber 27-27 by May 31, 2007.
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.