Drilling Activity Increases in Wy.

Royal Energy announced that interest in the oil and gas resources in Laramie County, Wyoming appears to be increasing. Specifically, the Wyoming Oil and Gas Conservation Commission has recently approved an application by EOG Resources, Inc. to engage in horizontal well drilling in the Niobrara Formation. EOG Resources, Inc., a Texas-based company listed on the NYSE, is one of the nation's largest oil and gas companies. The area in which EOG Resources proposes to drill is in the vicinity of the area of Laramie County in which Royal Energy Resources holds a mineral interest.

In 2009 Royal Energy Resources acquired a 3% override royalty interest in 1,987 mineral acres in Laramie County from Cirque Resources LP, a Denver-based oil and gas company.

"The decision by EOG Resources to drill horizontal wells in the Niobrara Formation supports our decision to invest in Laramie County," said Jacob Roth, President of Royal Energy Resources.