EX-99 3 roy990508.htm

Exhibit 99.1

 

Royale Energy Announces First Quarter Earnings of 12 Cents Per Share and Declares Stock Dividend

 


Thursday May 8, 7:15 AM EDT

SAN DIEGO, May 8, 2003 (BUSINESS WIRE) -- Royale Energy Inc. (ROYL) earned 12 cents per share for the first quarter of 2003.

 

For the quarter-ended March 31, 2003, the company reported revenues of $3,994,788, an increase of 61.5% over the same period last year. For the three months ended March 31, 2003, the company reported net income of $585,061 or $0.12 per basic share and $0.11 per diluted share for first quarter 2003 as compared to a loss of $0.05 per basic and fully diluted share during the same period the prior year.

 

Royale Energy's Board of Directors also declared its third consecutive 15% stock dividend. The dividend will be paid in four equal quarterly payments to stockholders of record on the last business day of each quarter, beginning June 30, 2003.

 

The company's Chief Financial Officer and Executive Vice President, Stephen Hosmer, said, "Because of the growth of the company and the strong industry fundamentals of natural gas, the company is confident in its ability to continue increasing production revenue and income over the next year."

 

The company's President and Chief Executive Officer, Don Hosmer, stated, "The issuance of the dividend shares will accelerate the growth benefit to the company's shareholders."

 

 

 

 

For the three months ended March 30    

 

  

 

2003     

  

 

2002      

 

  

 

   (Unaudited) 

  

 

   (Unaudited) 

Revenues

  

 

 

  

 

 

  Sale of oil and gas

  

 

$    2,145,480 

  

 

$      875,770 

  Turnkey drilling

  

 

1,688,644 

  

 

1,442,367 

  Supervisory fees and other

  

 

       160,664 

  

 

      154,349 

 

  

 

 

  

 

 

    Total Revenues

  

 

    3,994,788 

  

 

   2,472,486 

 

  

 

 

  

 

 

Costs and Expenses

  

 

 

  

 

 

  General and administrative

  

 

786,273 

  

 

628,479 

  Turnkey drilling and development

  

 

1,110,768 

  

 

758,356 

  Lease operating

  

 

300,408 

  

 

434,702 

  Lease impairment

  

 

296,649 

  

 

0 

  Legal and accounting

  

 

296,108 

  

 

352,284 

  Marketing

  

 

124,001 

  

 

194,807 

  Depreciation, depletion and amortization

  

 

       394,079 

  

 

      332,775 

 

  

 

 

  

 

 

    Total Costs and Expenses

  

 

    3,308,286 

  

 

   2,701,403 

 

  

 

 

  

 

 

Income (Loss) from Operations

  

 

686,502 

  

 

(228,917)

 

  

 

 

  

 

 

Other Expense

  

 

 

  

 

 

  Interest expense

  

 

         50,575 

  

 

         4,795 

 

  

 

 

  

 

 

Income Before Income Tax Expense

  

 

(635,927)

  

 

(233,712)

Income Tax Provision

  

 

         50,866 

  

 

                0 

 

  

 

 

  

 

 

Net Income (Loss)

  

 

$      585,061 

  

 

($     233,712)

 

  

 

 

  

 

 

Diluted Earnings Per Share

  

 

$           0.11 

  

 

($          0.05)

 

  

 

 

  

 

 

Basic Earnings Per Share

  

 

$           0.12 

  

 

($          0.05)

 

 

 

 

 

 

 

Natural Gas Production (MCFE)

 

 

416,495 

 

 

370,152 

 

 

 

 

 

 

 

Natural gas production for the first quarter increased to 416,495 MCF equivalent from 370,152 MCF equivalent in the first quarter 2002, a 12.5% increase. The company is benefiting from the record number of successful wells drilled in the year-ended 2002 and the first quarter 2003.

 

Royale Energy Inc. is an independent producer of natural gas and oil primarily in California. Headquartered in San Diego, the company applies modern computer-aided exploration technologies in the exploration and development of oil and/or natural gas.

 

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.

 

SOURCE: Royale Energy Inc.

 

CONTACT: Royale Energy, San Diego

          Andrea Wasilew, 619/881-2800

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