Royale Energy Announces Positive Operating Income for the 4th Quarter 2015

SAN DIEGO, March 15, 2016 -- Royale Energy, Inc. (OTCQB:ROYL) announced today its second consecutive quarter of positive operating income. For the 4^th Quarter of 2015, Royale reported an operating profit of $70,736 compared to an operating profit of $21,372 for the 3^rd Quarter of 2015. This improvement quarter over quarter comes despite a 14% decline in natural gas prices during the period. Additionally, Royale improved its quarterly operating income by $1,877,674 when compared to the 4^th quarter operating loss of $1,806,938 in 2014. For the year ended December 31, 2015, Royale reported an improvement of $141,040 in its net loss from $2,151,856 in 2014 to $2,010,816 in 2015, or a $0.13 loss per share basic and diluted. Despite declining production and commodity prices, Royale was able to turn its operations around by decreasing expense, increasing turnkey drilling activities, and selling certain non-core operational assets.

As Royale moves forward in this challenging oil and gas price environment, it remains focused on reducing its operating and administrative costs while continuing to strengthen its balance sheet. Management continues to pursue joint ventures that complement and expand Royale’s drilling opportunities. These joint ventures allow Royale to acquire oil and gas properties with low-cost developments and long term upside potential.

Royale is currently in the process of completing a well in California’s Sacramento Basin, and it anticipates drilling an additional five wells in 2016.

Forward Looking Statements

In addition to historical information contained herein, this news release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, subject to various risks and uncertainties that could cause the company’s actual results to differ materially from those in the “forward-looking” statements. While the company believes its forward looking statements are based upon reasonable assumptions, there are factors that are difficult to predict and that are influenced by economic and other conditions beyond the company’s control. Investors are directed to consider such risks and other uncertainties discussed in documents filed by the company with the Securities and Exchange Commission.

ROYALE ENERGY, INC.
STATEMENTS OF COMPREHENSIVE LOSS
FOR THE YEARS ENDED DECEMBER 31, 2015, AND 2014

	2015			2014
Revenues:
Sale of Oil and Gas	$	1,018,928		$	2,598,297
Supervisory Fees and Other		694,160			623,201

Total Revenues		1,713,088			3,221,498

Costs and Expenses:
General and Administrative		3,181,571			3,162,113
Lease Operating		1,000,769			1,427,673
Delay Rentals		448,313			616,806
Lease Impairment		424,163			268,093
Well Equipment Write Down		60,960			-
Bad Debt Expense		536,538			653,133
Legal and Accounting		558,471			401,160
Marketing		326,143			430,779
Depreciation, Depletion and Amortization		400,813			315,574

Total Costs and Expenses		6,937,741			7,275,331

Gain on Turnkey Drilling Programs		2,330,969			1,640,731
Gain on Sale of Assets		968,956			342,851

Loss from Operations		(1,924,728	)		(2,070,251	)

Other Expense:
Interest Expense		(86,088	)		(81,605	)

Loss Before Income Tax Expense		(2,010,816	)		(2,151,856	)

Provision for Income Taxes		-			-
Net Loss		(2,010,816	)		(2,151,856	)

Basic Loss Per Share		(0.13	)		(0.14	)

Diluted Loss Per Share		(0.13	)		(0.14	)

Other Comprehensive Income (Loss)
Unrealized Loss on Equity Securities		-			16,448
Less: Reclassification Adjustment for Losses Included in Net Income		(6,503	)		-

Other Comprehensive Gain (Loss) before tax		6,503			(16,448	)

Other Comprehensive Gain (Loss), net of tax		6,503			(16,448	)

Comprehensive Loss		(2,004,313	)		(2,168,304	)

ROYALE ENERGY, INC.
STATEMENTS OF OPERATIONS
FOR THE FOUR QUARTERS ENDED DECEMBER 31, 2015

	Three Months Ended												YTD
	March 31,			June 30,			September 30,			December 31,			December 31,
		2015			2015			2015			2015			2015
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Audited)

Revenues:
Sale of Oil and Gas	$	294,309		$	281,984		$	255,179		$	187,456		$	1,018,928
Supervisory Fees and Other		175,760			166,706			186,616			165,078			694,160

Total Revenues		470,069			448,690			441,795			352,534			1,713,088

Costs and Expenses:
General and Administrative		828,944			858,251			710,239			784,137			3,181,571
Lease Operating		314,792			269,804			218,953			197,220			1,000,769
Delay Rentals		29,128			20,437			-			398,748			448,313
Lease Impairment		12,681			-			83,755			327,727			424,163
Well Equipment Write Down		19,000			-			-			41,960			60,960
Bad Debt Expense		-			-			-			536,538			536,538
Legal and Accounting		224,476			99,422			130,037			104,536			558,471
Marketing		76,988			68,759			94,861			85,535			326,143
Depreciation, Depletion and Amortization		74,791			64,429			70,018			191,575			400,813

Total Costs and Expenses		1,580,800			1,381,102			1,307,863			2,667,976			6,937,741

Gain (Loss) from Turnkey Drilling Programs		-			16,237			887,440			1,427,292			2,330,969
Gain (Loss) from Sale of Assets		-			10,070			-			958,886			968,956

Income (Loss) From Operations		(1,110,731	)		(906,105	)		21,372			70,736			(1,924,728	)

Other Income (Expense):
Interest Expense		(21,185	)		(21,544	)		(21,766	)		(21,593	)		(86,088	)

Income Before Income Tax Expense		(1,131,916	)		(927,649	)		(394	)		49,143			(2,010,816	)
Income tax provision		-			-			-			-			-

Net Income (Loss)	($	1,131,916	)	($	927,649	)	($	394	)	$	49,143		($	2,010,816	)

Basic Earnings Per Share	($	0.08	)	($	0.06	)	$	0.00		$	0.00		($	0.13	)

Diluted Earnings Per Share:	($	0.08	)	($	0.06	)	$	0.00		$	0.00		($	0.13	)

Contact:
Royale Energy, Inc.
Chanda Idano 
Director of Marketing & PR 
619-383-6600 
[email protected] 
http://www.royl.com

Royale Energy Announces Positive Operating Income for the 4th Quarter 2015

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