Royale Energy, Inc. (OTCQB: ROYL) is an exploration and production company focused on the acquisition, development, and marketing of oil and natural gas. Shares surged 32.54% on Wednesday, January 9, 2019. Over the past month, Royale has seen an average daily volume of 26,542 shares. However, on Wednesday, 64,037 shares traded hands, equating to $17,900 in dollar volume.
Shares jumped Wednesday after Royale announced that the production casing was set on a natural gas well recently drilled in Rio Vista Field, California. The well, RVGU #33-1, is estimated to have, “174 net ft. of probable gas zones and 37 net ft. of possible gas zones.” Official testing of the well is expected to commence in the next ten days. With the first well appearing to be a success, Royale plans to drill a total of thirty in conjunction with California Resources Production Corporation (NYSE: CRC). Royale and California Resources are currently operating under a three-year joint venture agreement. Rio Vista Field is “the largest natural gas field in California” and has produced “approximately 4 trillion cubic ft. from more than 15 stacked natural gas reservoirs.” Here is the full press release detailing Royale’s natural gas operation in Rio Vista Field:
Royale Energy, Inc. Press Release:
SAN DIEGO, Jan. 09, 2019 (GLOBE NEWSWIRE) — Royale Energy, Inc., (OTCQB : ROYL) announced today that production casing was set on the recently drilled RVGU #33-1 well in the Rio Vista Field in partnership with California Resources Production Corporation (CRPC). The open hole logs indicate 174 net ft. of probable gas zones and 37 net ft. of possible gas zones. We anticipate testing the well within the next five to ten days.
“We are excited that the first well drilled under the new Joint Venture with CRPC appears to be a strong gas well,” said Johnny Jordan, Chief Executive Officer. “This first well is a good indicator of the potential of the new prospects we have identified in the Rio Vista Field.” The RVGU #33-1 is the first of the 30 wells Royale intends to drill under our three-year Joint Venture arrangement with California Resources Production Corporation in the Rio Vista Field.
The Rio Vista Field is the largest natural gas field in California. It was discovered in 1936 and has produced approximately 4 trillion cubic ft. from more than 15 stacked natural gas reservoirs.
About Royale Energy. Inc.
Royale Energy, Inc. (OTCQB: ROYL) is an independent exploration and production company focused on the acquisition, development, and marketing of oil and natural gas. The Company has its primary operations in California’s Los Angeles and Sacramento Basins.
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.
Article By: Andrew Rego