Royale Acquires Rights to Drill and Develop in the 2,299 Acre Producing Ballinger Oil Field
May 06 2015 - 7:30AM
Royale Energy, Inc. (Nasdaq:ROYL) today announced
that it has reached an agreement to drill up to 30 wells in the
Ballinger Oil Field in Runnels County, TX with three initial wells
to be drilled immediately into the Ellenberger formation.
Current production in the field comes from the Palo Pinto North
formation and the current interval of oil production is at 3,400
ft. which is a limestone with both primary, secondary and fracture
porosity zones. From an estimated 4.75 million barrels of oil in
place only 350,000 have been produced to date. Existing well
spacing points to a significant potential for infill drilling by
either vertical or horizontal wells, to produce the proven oil
accumulation that was not accessed by the initial field
development.
Additional potential estimated at over 6 million barrels of oil
and 7.6 BCF of gas with an estimated 20% recovery exists in other
formations below the Palo Pinto North that include the Cross-cut
sandstone at 3,500 ft., the Upper Capps Fm., at 3,700 ft., the
Jennings Fm. at 4,000 ft. and the Gardner Fm. at 4,100 ft., that
are all potentially prospective sandstone or limestone lithofacies
that either lie behind pipe in the existing wells or have not been
penetrated over most of the acreage. All these formations have
produced oil at various locals in the surrounding acreage and will
be targeted in all of Royale's future drilling.
The deepest prospective target in the area is the Ellenberger
formation at approximately 4,400 ft. It was not targeted for
development in the surrounding leases but was penetrated by a 1947
well that lies 1.5 miles NE of the acreage and drill stem tested
580 ft. of oil show and 40 MCFG/D but was completed as an oil
producer from a shallower target.
There are also shallower prospective formations at around 2,900
ft. that are not quantified such as the Serratt Sandstone and the
Canyon Sands but have produced oil from two wells in the
vicinity.
The company's Nugget well went into production on April 30,
2015, flowing on a 4/64th's choke at 600 Mcf/day and 1,500 psi.
Subsequently, the choke was opened to 6/64th's for 800 Mcf/day and
1,650 psi. Three additional zones remain behind pipe and will be
completed at a later date.
The PG&E Citygate daily price for 5-5-15 flow date is $3.13
per Mcf making it the highest North American price for natural
gas.
Royale has permitted five additional wells to be drilled in the
Sacramento Basin.
Forward Looking Statements
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.
CONTACT: Royale Energy, Inc.
Chanda Idano, Director of Marketing & PR
619-383-6600
chanda@royl.com
www.royl.com
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