Royale Energy, Inc. (OTCQB : ROYL) is recognized as one of the top 20 fastest growing natural gas and oil producers in the United States by Oil & Gas Journal. The company has also been named Oil & Gas World’s “Play of the Month” on five occasions. Its principle lines of business include the production and sale of natural gas and oil, acquisition of oil and gas interests and proved reserves, drilling of exploratory and developmental wells and sales of fractional working interests in the wells it drills. Royale Energy owns wells and leases in California’s Sacramento and San Joaquin basins, Utah, the Gulf Coast basins of Texas and Louisiana and Alaska.

The company diversifies the development of its properties by selling a portion of the working interest in each lease that it acquires to third party investors and retains a portion of the prospect for its own account. The prospects are then bundled into multi-well investments. This strategy of shared ownership in multiple wells provides investment opportunities that minimize risk while seeking superior returns for shareholders and direct working interest investors.

As an established leading independent producer of domestic oil and natural gas for nearly 30 years, Royale Energy is well positioned for continued growth and profitability for the balance of the decade.

Founded in 1986, Royale Energy, Inc. is an independent exploration and production company focused on the acquisition, development, and marketing of natural gas. Incorporated under the laws of the State of California, Royale Energy owns and operates wells in the Sacramento and San Joaquin basins in California and in the U.S. Gulf Coast. It markets approximately 15,000,000 cubic feet of natural gas per day to its customers.

Where We Operate

As of December 31, 2005, Royale Energy operated 68 natural gas wells in California. Royale also owns an interest and operates two natural gas wells in Utah and has non-operating interests in 12 oil and gas wells in Texas, three in Oklahoma, and two in Louisiana. In the first half of 2006, Royale Energy drilled seven wells, six of which were successful, resulting in a greater than 85% success ratio.

How We Run the Business

To continually monitor and maintain a high level of productivity, Royale Energy directly manages company properties and is responsible for the drilling and operations of its development portfolio. Our personnel perform daily on-site inspections at each well. This commitment to consistent, direct, hands-on monitoring of activities at the well-head insures the highest possible performance from each property. Our staff includes highly trained and skilled individuals, motivated to work for a company with the track record and commitment to excellence provided by Royale Energy. Royale nominates and sells natural gas to its customers and end users. These have included companies such as Spreckles Sugar, Herman Goelitz Candy (Jelly Belly’s), Coca Cola, Otis Spunkmeyer, San Diego Gas & Electric, Pacific Gas & Electric and BP Energy.

Where We Are Going

Royale Energy is, at this time, embarking on a major expansion of its asset base (reserves).