Royale Energy Begins Drilling Program in Utah

Royale Energy, Inc. begins drilling operations on the southern flank of the Uintah basin, Utah. Appropriate permits have been secured from the Bureau of Land Management and the Utah State Division of Oil and Gas to drill three wells in the Moon Canyon area. A permit for a fourth well is being processed.

The first well, Ten Mile Canyon, is currently drilling at a depth of 4,000 feet with Nabor's Rig #124, and drill site preparations have begun at the V Canyon and Trail Canyon locations. Royale Energy is the operator of the project.

The Ten Mile Canyon is 1.5 miles south-southeast of the opener for Moon Ridge Field, which was completed in 1962 flowing 9 million cubic feet of gas a day. It was re-completed in 1963 for 6.7 million cubic feet of gas a day and is still producing. Royale's Ten Mile Canyon well will target a total depth of 11,500 feet to evaluate the Mancos Shale potential between 6,000-9,000 feet, Dakota Sand at 9,127 feet, Entrada at 10,064 feet and Wingate formation at 10,280 feet.

The 19,000 acre Moon Canyon lease block is in a prolific natural gas producing area and has been tested by Royale's Moon Canyon #2 well that has produced 159.9 million cubic feet of gas between July 2005 and June 2007 and is currently producing 800,000 cubic feet per day of natural gas from only one of three producing zones.

Questar has recently installed new pipeline capacity with a twelve-inch pipeline very close to Royale's acreage.