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Royale energy makes positive gains in Eastern Permian Basin

At the end of last week, Royale Energy Inc. (NASDAQ:ROYL) announced a successful initial drill operation in the Ballinger oil field in Runnels County, Texas, as the company completed its Royale Ballinger #1 well.

In May of this year, Royale entered into an agreement to drill and develop 2,299 acres in the producing Ballinger oil field. According to a press release on behalf of the company, Royale has drilled two of three scheduled wells, on time and under budget.

Ballinger #1 was completed in the Palo Pinto North formation at 3,400 feet and tested at a rate of 80 barrels per day. With an estimated 70 percent oil cut, it’s indicated that sustained production will rest around 15 barrels of oil per day.

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“Establishing production from the Ballinger #1 adds a large base of proved reserves in our Texas Eastern shelf Permian Basin oil properties,” stated Co-President and Co-CEO Stephen Hosmer. “Reserves could exceed 750,000 barrels of oil in estimated ultimate recoverable reserves over the entire field even at today’s prices.”

The second well in completion, Royale’s Mosley #1, has reached total depth and is expected to be on time for completion testing sometime this week. Drilling will commence on Royale’s third well, Lynn #1, by August 31, 2015.  The company stated that given the results of the first three wells, Royale could drill as many as 50 to 70 wells for full field development.

 

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