-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Kglcy+B8nW/clw61vwPQh0I9fHrBc0HVWX+8WWYmOUKb1L/Lhcebi/92w/+vqlrS hNGkhVoynnMZAbiwCHBztQ== 0000864839-00-000003.txt : 20000403 0000864839-00-000003.hdr.sgml : 20000403 ACCESSION NUMBER: 0000864839-00-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000315 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000331 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROYALE ENERGY INC CENTRAL INDEX KEY: 0000864839 STANDARD INDUSTRIAL CLASSIFICATION: CRUDE PETROLEUM & NATURAL GAS [1311] IRS NUMBER: 330224120 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 000-22750 FILM NUMBER: 591666 BUSINESS ADDRESS: STREET 1: 7676 HAZARD CENTER DR STREET 2: SUITE 1500 CITY: SAN DIEGO STATE: CA ZIP: 92108 BUSINESS PHONE: 6192978505 MAIL ADDRESS: STREET 1: ROYALE ENERGY INC STE 1500 STREET 2: 7676 HAZARD CENTER DR CITY: SAN DIEGO STATE: CA ZIP: 92108 FORMER COMPANY: FORMER CONFORMED NAME: ROYALE ENERGY FUNDS INC DATE OF NAME CHANGE: 19940318 8-K 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): March 15, 2000 ROYALE ENERGY, INC. (Exact name of registrant as specified in its charter) California 0-22750 33-02224120 (State or other jurisdiction (Commission (IRS Employer of incorporation or organization) File Number) Identification No.) 7676 Hazard Center Drive, Suite 1500 San Diego, CA 92108 (Address of principal executive office) Issuer's telephone number: 619-881-2800 Item 5. Other Events. Letter to Shareholders of Royale Energy, Inc. Pertaining to Stock Performance On March 15, 2000, Royale Energy, Inc. mailed a letter to all of its current shareholders of record addressing the price performance of its common stock. A copy of the letter is attached to this filing as an exhibit. Item 7. Financial Statements and Exhibits (c) Exhibits 99.1 Letter to Shareholders dated March 15, 2000. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. - 1 - ROYALE ENERGY, INC. Date: March 15, 2000 /s/ Donald H. Hosmer ---------------------------- Donald H. Hosmer, President - 2 - EX-99 2 To Fellow Royale Energy Shareholders: The natural gas and oil price collapse in 1998 and early 1999 along with the natural decline in production resulted in a decrease in our earnings, from 39 cents per share in 1997 to 20 cents per share in 1998 and a net loss in the second quarter of 1999. These losses depressed our stock price. We want you to understand what Royale's leadership has done and will continue to do to manage controllable factors that affect stock price. Total staff count was reduced throughout the year and many expenditures have been eliminated or delayed. General and administration expenses decreased by 4.1% in the first nine months of 1999 and the our oil and gas lease operating expenses decreased by 14.5% during that same period. After Royale's 2nd quarter 1999 loss, which was the first loss in many years, the profits in the 3rd quarter 1999 brought us back to a break even. In fact, more than half of our income in the first 9 months of 1999 came in the 3rd quarter, as energy prices improved and our drilling activity increased. We expect that 4th quarter results (being finalized now) will show continued improvement and that our strong 4th quarter 99 will make us profitable for the year. Oil prices continue to rise and are now at their highest levels since the Gulf War in the early 1990s. The price of natural gas is now rebounding with skyrocketing demand. We project that in the 1st quarter of 2000 we will record our highest 1st quarter earnings in company history. We are bringing on a new oil producer in the Gulf Coast and plan to acquire additional oil prospects to add to a high quality inventory of natural gas wells we expect to drill in 2000. We believe that two of Royale's largest natural gas discoveries in 1999, Blossom and Dunnigan Hills, will add 5,000 MCF per day in production this year along with any new discoveries. For these and other reasons, we believe our stock price does not reflect the company's fundamental value. The best we can do to improve our stock valuation is to continue increasing natural gas and oil reserves, production, cash flow and earnings. We're positively positioned to do that with the development of our valuable East Rice Creek Victor Ranch and Bowerbank fields along with new exciting oil properties. As always, we thank you for your confidence in this great company and will work hard to reward it. - 1 - Sincerely, ROYAL ENERGY, INC. /s/ Donald H. Hosmer - -------------------------- Donald Hosmer, President President and CEO This letter contains forward-looking statements that involve risks and uncertainties. We use words such as "believe," "plan," "expect," "project," and similar expressions to identify such forward-looking statements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this letter. Our actual results could differ materially from those anticipated in these forward-looking statements for many reasons. For example, if oil and natural gas prices fall again, or if our drilling results are worse than we expect, we may not be able to achieve the improved financial results in 2000 that we now believe are possible. - 2 - -----END PRIVACY-ENHANCED MESSAGE-----