Royale Energy, Inc. ("Royale Energy") is an independent oil and natural gas
producer. Royale Energy's principal lines of business are the production and
sale of natural gas, acquisition of oil and gas lease interests and proved
reserves, drilling of both exploratory and development wells, and sales of
fractional working interests in wells to be drilled by Royale Energy. Royale
Energy was incorporated in California in 1986 and began operations in
1988. Royale Energy's common stock is traded on the NASDAQ Capital Market System
(symbol ROYL). On December 31, 2013, Royale Energy had 19 full time employees.
Royale Energy owns wells and leases located mainly in the Sacramento Basin and
San Joaquin Basin in California as well as in Utah, Texas, Oklahoma, Louisiana,
and Alaska. Royale Energy usually sells a portion of the working interest in
each well it drills or participates in to third party investors and retains a
portion of the prospect for its own account.