Royal Makes Discovery on the Ten Mile Canyon 22-1 Well in the Unitah Basin

Royale Energy has successfully drilled the Ten Mile Canyon 22-1 well in section 22 of its Moon Canyon Field located in the Uintah Basin, Utah. The Ten Mile Canyon well was drilled to a depth of 11,274 feet through all prospective formations.

Electric logs as well as other tools indicate potentially productive gas in the Wingate, Entrada, Dakota, Castlegate, and Mancos formations. In addition to these formations came the discovery of a shallow oil zone. The company plans to immediately commence completion operations to establish production from the deepest (Wingate) objective before the onset of winter snow.

Discovery of the Wingate gas at this location is of a particular significance. The Wingate has been highly productive in the Wolf Point and Flat Rock Fields approximately 10 miles north of this location; however, no Wingate production was known to exist south of the Hill Creek Fault Zone. This discovery raises the prospects of a number of additional locations on the remaining 15,000 net acres held by the company.

In the Dakota formation, the company logged over 20 feet of net pay with porosity in the range of 8-14%. This compares favorably to the Dakota production three miles north in which the NFC 31-15 well encountered approximately 25 feet of net pay, and has produced in excess of 2 BCF of gas to date.

Over 3,000 feet of Mancos shale was present in the well, with strong indications that over 600 feet may prove productive. The company expects to test the Mancos to determine the significance of this horizon as a primary target in its drilling plans for 2008.

The company expects to move the rig directly to its next drilling location in the field and commence drilling the second of four wells by August 20th.