Royale Energy Adds More Gas in the Denverton Creek Field

Royale Energy, Inc.

Royale Energy has performed a number of workovers aimed at increasing production ahead of the summer cooling load, in its continuing effort to adjust to the current economic climate. As a result, the company successfully perforated new zones in the Victor Ranch 9-16, 1-9, and Federal 3-2 wells.

The Federal 3-2 perforations were conducted at depths below 8,900 feet in the McCormack sand and tested gas at a stabilized rate of 1.12 Million Cubic Feet (MMcf) per day. The well was put into production yesterday at a startup rate of 200 Thousand Cubic Feet (Mcf) per day and will be increased slowly to its maximum efficient rate.

The Federal 3-2 well was first put into production in June 1986 and has produced a total of 1.7 Billion Cubic Feet (BCF) of gas to date from deeper zones. The shut-in pressure of 3070 psi indicates a fully charged new zone which has not been depleted by any nearby wells. After 23 years of production, the addition of this previously untapped zone may lead to additional exploration opportunities in the area.