Royale Energy, the CA-based
oil and gas developer with a solid footprint in the state’s San Joaquin and
Sacramento basins, in addition to their growing nationwide footprint spanning
several key locations in Utah’s Uinta Basin (where they have imaged over 22
square miles of 3Dseismic) and the Bayou Bengal JV project with Brigham
Exploration down in Texas, gladly announced today that they have begun drilling
on their Victor Ranch 3-20 well in the Sacramento Basin.
The 3-20 is the latest well
for ROYL in this superb field, whose production track record stretches back to
1993 with the Victor Ranch 12 (3B cubic feet to date produced and still
running). This latest well being drilled is the first in a new four-well series
to be put in during Q1 here and the company’s success in the past on the site
drilling seismic amplitude-supported targets speaks for itself really. Two more
gas wells at Victor Ranch are also being brought into production this week
according to ROYL, one of which (The Cardiff) was actually completed last
quarter in 2013 (reported Dec 13, flowed at 1.78M cubic feet/day), the ninth
completed by ROYL in 2013. The second gas well, the Memento, while originally
completed for a lower zone identified via the company’s proprietary 3D seismic
survey, has been set up for production from the main target.
Accelerating the production
envelope in the Sacramento Basin is partially a response to a sharp jump in CA
natural gas prices, which have risen to a four-year high, with 2013 having been
the driest year in recorded history for many areas of the state as hydro is
scaled back due to the oppressive drought conditions. At California’s last
nuclear plant, Diablo Canyon, Unit 1 was announced by PG&E in September as
having production halted this spring for planned maintenance. Overall the
picture in CA is very clear and ROYL is wasting no time responding to the
situation. Most of the state is in D4/D3 category drought (exceptional/extreme)
and the combination of reduced hydro and nuclear inputs has sent natgas-fired
generation soaring, up 33%, as PG&E city gate prices hit $8.04 per Mcf.
Also in the news today from
ROYL was a data burst regarding commencement of their ambitious 120 square mile
3D seismic program for the extremely rich North Slope of Alaska (announced Jan
7) with partner Rampart Energy (SAE Exploration awarded 3D Seismic Acquisition
contract). Considerable conventional, as well as unconventional, oil and gas
targets are in the sights here and Rampart has announced a $50M commitment for
exploration costs just this week (Feb 3), signaling the start of major activity
that will broaden ROYL’s overall footprint nicely.
More info on Royale Energy,
Inc. is available at www.ROYL.com
About MissionIR
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
MissionIR is committed to connecting the investment community with companies that have great potential and a strong dedication to building shareholder value. We know our reputation is based on the integrity of our clients and go to great lengths to ensure the companies represented adhere to sound business practices.
Sign up for “The Mission Report” at www.MissionIR.com
Please see disclaimer on the MissionIR website http://www.missionir.com/disclaimer.html
