Royale Energy expands position in Permian Basin project

Royale Energy (ROYL) announced the acquisition of additional non-operated working interests in seven producing Barnett wells within the 17,000-acre Pradera Fuego project, operated by Ares Energy in Ector County, Texas. With this acquisition, Royale and its outside investors now hold in the aggregate a 7.5% non-operated working interest across seven producing horizontal Barnett wells, and a 5% working interest in the associated acreage. Royale is currently negotiating a Farm-out agreement to obtain the drilling rights to an additional 2.5% working interest on the acreage. The Pradera Fuego asset provides a robust development pathway for Royale, including 39 future Barnett drilling locations and 44 future Woodford locations, creating significant long-term growth potential for Royale’s investor drilling programs. At current commodity prices, the acquired producing interests are expected to deliver approximately $715,000 in additional annual cash flow in the first 12 months, further strengthening Royale’s financial position and supporting its strategy to expand production and reserves.