Royale Energy Inc. (ROYL, Financial) filed Quarterly Report for the period ended 2009-03-31.
ROYALE ENERGY INC. is an independent oil and gas producer. Their principal lines of business include the acquisition of oil and natural gas lease interests and proved reserves drilling of both exploratory and development wells sales of fractional working interests in wells to be drilled by the company and marketing of natural gas. They own wells and leases in major geological basins located in Texas and California. Royale Energy Inc. has a market cap of $21.4 million; its shares were traded at around $2.507 with and P/S ratio of 1.1.
In the first quarter of 2009, revenues from oil and gas production decreased $877,815 or 51.1% to $838,577 from the 2008 first quarter revenues of $1,716,392, due to lower prices received for our oil and natural gas production. The net sales volume of natural gas for the quarter ended March 31, 2009, was approximately 176,928 Mcf with an average price of $4.38 per Mcf, versus 175,822 Mcf with an average price of $8.22 per Mcf for the first quarter of 2008. This represents an increase in net sales volume of 1,107 Mcf or 0.6%. This slight increase was mainly due to new production brought online during the quarter , partially offset by the natural declines in production from existing wells. The net sales volume for oil and condensate (natural gas liquids) production was 2,002 barrels with an average price of $32.10 per barrel for the first three months of 2009, compared to 3,069 barrels at an average price of $88.44 per barrel for the three months in 2008. This represents a decrease in net sales volume of 1,067 barrels, or 34.8%.
For the quarter ended March 31, 2009, turnkey drilling revenues increased $194,271 or 17.7% to $1,290,467 from $1,096,196 in the same quarter in 2008. We also had a $226,008 or 22.7% increase in turnkey drilling and development costs to $1,220,694 in 2009 from $994,686 in 2008. Turnkey drilling revenues and costs increased due to the drilling of two wells in California during the period in 2009, the Lonestar East #1, which went online in January and the Raptor #1, an exploratory dry hole. One well was drilled during the period in 2008. During the year to date in 2009, we processed the permits on several wells in California, and we expect to participate in
General and administrative expenses decreased by $71,557 or 7.2%, from $991,204 for the quarter ended March 31, 2008, to $919,647 for the period in 2009. This was primarily due to our cost control measures. Marketing expense for the quarter ended March 31, 2009, decreased $14,787, or 6.5%, to $212,707, compared to $227,494 for the period in 2008. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.
At March 31, 2009, Royale Energy had current assets totaling $8,204,379 and current liabilities totaling $12,227,967, a $4,023,588 working capital deficit. We had cash and cash equivalents at March 31, 2009, of $3,044,316 compared to $1,330,739 at December 31, 2008.
At March 31, 2009, our accounts receivable totaled $2,157,689, compared to $3,750,557 at December 31, 2008, a $1,592,868 (42.5%) decrease, primarily due to lower receivables from an industry member participating in wells we drilled at the end of 2008. At March 31, 2009, our accounts payable and accrued expenses totaled $8,218,387, a decrease of $2,101,800 or 20.4% from the accounts payable at December 31, 2008, of $10,320,187, mainly due to applying prepaid drilling remittances to trade accounts payables.
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ROYALE ENERGY INC. is an independent oil and gas producer. Their principal lines of business include the acquisition of oil and natural gas lease interests and proved reserves drilling of both exploratory and development wells sales of fractional working interests in wells to be drilled by the company and marketing of natural gas. They own wells and leases in major geological basins located in Texas and California. Royale Energy Inc. has a market cap of $21.4 million; its shares were traded at around $2.507 with and P/S ratio of 1.1.
Highlight of Business Operations:
For the first quarter of 2009, we had a net loss from operations of $891,056 compared to the net loss of $927,460 during the first quarter of 2008, a $36,404 difference. Total revenues for the first quarter in 2009 were $2,268,170, a decrease of $722,087 or 24.2% from the total revenues of $2,990,257 during the period in 2008. This decrease in revenues and the quarter’s net loss was the result of decreases in oil and natural gas commodity prices affecting our oil and natural gas production revenues.In the first quarter of 2009, revenues from oil and gas production decreased $877,815 or 51.1% to $838,577 from the 2008 first quarter revenues of $1,716,392, due to lower prices received for our oil and natural gas production. The net sales volume of natural gas for the quarter ended March 31, 2009, was approximately 176,928 Mcf with an average price of $4.38 per Mcf, versus 175,822 Mcf with an average price of $8.22 per Mcf for the first quarter of 2008. This represents an increase in net sales volume of 1,107 Mcf or 0.6%. This slight increase was mainly due to new production brought online during the quarter , partially offset by the natural declines in production from existing wells. The net sales volume for oil and condensate (natural gas liquids) production was 2,002 barrels with an average price of $32.10 per barrel for the first three months of 2009, compared to 3,069 barrels at an average price of $88.44 per barrel for the three months in 2008. This represents a decrease in net sales volume of 1,067 barrels, or 34.8%.
For the quarter ended March 31, 2009, turnkey drilling revenues increased $194,271 or 17.7% to $1,290,467 from $1,096,196 in the same quarter in 2008. We also had a $226,008 or 22.7% increase in turnkey drilling and development costs to $1,220,694 in 2009 from $994,686 in 2008. Turnkey drilling revenues and costs increased due to the drilling of two wells in California during the period in 2009, the Lonestar East #1, which went online in January and the Raptor #1, an exploratory dry hole. One well was drilled during the period in 2008. During the year to date in 2009, we processed the permits on several wells in California, and we expect to participate in
General and administrative expenses decreased by $71,557 or 7.2%, from $991,204 for the quarter ended March 31, 2008, to $919,647 for the period in 2009. This was primarily due to our cost control measures. Marketing expense for the quarter ended March 31, 2009, decreased $14,787, or 6.5%, to $212,707, compared to $227,494 for the period in 2008. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.
At March 31, 2009, Royale Energy had current assets totaling $8,204,379 and current liabilities totaling $12,227,967, a $4,023,588 working capital deficit. We had cash and cash equivalents at March 31, 2009, of $3,044,316 compared to $1,330,739 at December 31, 2008.
At March 31, 2009, our accounts receivable totaled $2,157,689, compared to $3,750,557 at December 31, 2008, a $1,592,868 (42.5%) decrease, primarily due to lower receivables from an industry member participating in wells we drilled at the end of 2008. At March 31, 2009, our accounts payable and accrued expenses totaled $8,218,387, a decrease of $2,101,800 or 20.4% from the accounts payable at December 31, 2008, of $10,320,187, mainly due to applying prepaid drilling remittances to trade accounts payables.
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