Royale Energy Inc. (ROYL, Financial) filed Amended Quarterly Report for the period ended 2010-03-31.
Royale Energy Inc. has a market cap of $21.1 million; its shares were traded at around $2.06 with and P/S ratio of 2.4.
In the first quarter of 2010, revenues from oil and gas production decreased $47,796 or 5.7% to $790,781 from the 2009 first quarter revenues of $838,577, due to lower oil and natural gas production, which was partially offset by higher sales prices. The net sales volume of natural gas for the quarter ended March 31, 2010, was approximately 125,826 Mcf with an average price of $5.27 per Mcf, versus 176,928 Mcf with an average price of $4.38 per Mcf for the first quarter of 2009. This represents a decrease in net sales volume of 51,102 Mcf or 28.9%. This decrease was mainly due to the natural declines in production from existing wells. The net sales volume for oil and condensate (natural gas liquids) production was 1,839 barrels with an average price of $69.71 per barrel for the first three months of 2010, compared to 2,002 barrels at an average price of $32.10 per barrel for the three months in 2009. This represents a decrease in net sales volume of 163 barrels, or 8.1%.
For the quarter ended March 31, 2010, turnkey drilling revenues decreased $565,639 or 43.8% to $724,828 from $1,290,467 in the same quarter in 2009. We also had a $766,608 or 62.8% decrease in turnkey drilling and development costs to $454,086 in 2010 from $1,220,694 in 2009. Due to greater than normal rain fall during the first three months of 2010, Royale only finished drilling one well in Northern California, the Vann #1, to which Royale is currently in the
General and administrative expenses increased by $37,263 or 4.1%, from $903,782 for the quarter ended March 31, 2009, to $941,045 for the period in 2010. This was primarily due to a credit recorded in 2009 pertaining to our outside consulting costs. Marketing expense for the quarter ended March 31, 2010, decreased $61,955, or 29.1%, to $150,752, compared to $212,707 for the period in 2009. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.
At March 31, 2010, Royale Energy had current assets totaling $7,799,952 and current liabilities totaling $10,128,359, a $2,328,407 working capital deficit. We had cash and cash equivalents at March 31, 2010, of $2,968,506 compared to $3,835,282 at December 31, 2009.
At March 31, 2010, our accounts receivable totaled $2,255,740, compared to $2,493,108 at December 31, 2009, a $237,368 (9.5%) decrease, primarily due to lower receivables of oil and natural gas revenues. At March 31, 2010, our accounts payable and accrued expenses totaled $4,727,319, a decrease of $401,668 or 7.8% from the accounts payable at December 31, 2009, of $5,128,987, mainly due to paying down our accounts payable.
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Royale Energy Inc. has a market cap of $21.1 million; its shares were traded at around $2.06 with and P/S ratio of 2.4.
Highlight of Business Operations:
For the first quarter of 2010, we had a net loss of $372,515 compared to the net loss of $891,056 during the first quarter of 2009, a $518,541 improvement. Total revenues for the first quarter in 2010 were $1,648,979, a decrease of $619,191 or 27.3% from the total revenues of $2,268,170 during the period in 2009. This decrease in revenues was the result of a reduction in oil and natural gas production compounded by decreased turnkey drilling revenue due to drilling one less well in the first quarter of 2010 than in 2009. However, Royale was able to reduce the company s quarterly net loss by cutting back total expenses.In the first quarter of 2010, revenues from oil and gas production decreased $47,796 or 5.7% to $790,781 from the 2009 first quarter revenues of $838,577, due to lower oil and natural gas production, which was partially offset by higher sales prices. The net sales volume of natural gas for the quarter ended March 31, 2010, was approximately 125,826 Mcf with an average price of $5.27 per Mcf, versus 176,928 Mcf with an average price of $4.38 per Mcf for the first quarter of 2009. This represents a decrease in net sales volume of 51,102 Mcf or 28.9%. This decrease was mainly due to the natural declines in production from existing wells. The net sales volume for oil and condensate (natural gas liquids) production was 1,839 barrels with an average price of $69.71 per barrel for the first three months of 2010, compared to 2,002 barrels at an average price of $32.10 per barrel for the three months in 2009. This represents a decrease in net sales volume of 163 barrels, or 8.1%.
For the quarter ended March 31, 2010, turnkey drilling revenues decreased $565,639 or 43.8% to $724,828 from $1,290,467 in the same quarter in 2009. We also had a $766,608 or 62.8% decrease in turnkey drilling and development costs to $454,086 in 2010 from $1,220,694 in 2009. Due to greater than normal rain fall during the first three months of 2010, Royale only finished drilling one well in Northern California, the Vann #1, to which Royale is currently in the
General and administrative expenses increased by $37,263 or 4.1%, from $903,782 for the quarter ended March 31, 2009, to $941,045 for the period in 2010. This was primarily due to a credit recorded in 2009 pertaining to our outside consulting costs. Marketing expense for the quarter ended March 31, 2010, decreased $61,955, or 29.1%, to $150,752, compared to $212,707 for the period in 2009. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.
At March 31, 2010, Royale Energy had current assets totaling $7,799,952 and current liabilities totaling $10,128,359, a $2,328,407 working capital deficit. We had cash and cash equivalents at March 31, 2010, of $2,968,506 compared to $3,835,282 at December 31, 2009.
At March 31, 2010, our accounts receivable totaled $2,255,740, compared to $2,493,108 at December 31, 2009, a $237,368 (9.5%) decrease, primarily due to lower receivables of oil and natural gas revenues. At March 31, 2010, our accounts payable and accrued expenses totaled $4,727,319, a decrease of $401,668 or 7.8% from the accounts payable at December 31, 2009, of $5,128,987, mainly due to paying down our accounts payable.
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