Royale Energy Announces the Sale of the Rio Bravo Fieldadmin
Royale Energy, Inc. announced that it has concluded the sale of its interest in the Monterey shale play. The transaction is the culmination of the Company’s efforts to enhance the value of the historic Rio Bravo oil field by exploration in a previously undeveloped Monterey zone.
These exploration efforts over the past year, have seen mixed results as the completion of the Webber 27-27 and re-drilling of the Webber 27-27x, resulted in underperforming wells. While the Company remained encouraged enough to commence the drilling of a new exploratory test in the Webber 27-27y, the expected capital needed to unlock the full potential of the property was expected to surpass that which the Company was willing to commit.
As a result the decision was made to sell the property and redeploy capital to its Moon Canyon property, further strengthening Royale’s long-term commitment to domestic natural gas.
Stephen Hosmer, the Company’s CFO, said, “The $4.75 million in proceeds from the sale will better serve the company and its shareholders by allowing us to accelerate the development of a larger 22,000 acre gas shale play in the Uintah basin. The Mancos shale has the potential to yield the same return [as Rio Bravo] with a significantly lower capital requirement.”
Headquartered in San Diego, Royale Energy, Inc. is an independent energy company. The company is focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains. It has been a leading independent producer of oil and natural gas for over 20 years. The company’s strength is continually reaffirmed by investors who participate in funding over 50% of the company’s new projects. Additional information about Royale Energy, Inc. is available on its web site at www.royl.com.