Royale Energy, Inc. announced new progress on its Joint Development Agreement (JDA) with Ares Energy LTD, located in the Permian Basin, Texas. This project is a horizontal resource play in the Mississippian interval. Royale and its investors have a 5% Working Interest in the fifth and sixth wells that are in the process of drilling and completing on the 17,000+ net acres project, located in Ector County, Texas.

The Company currently has 4 producing wells in this project with 2 more wells in the process of getting completed on this acreage. The fifth well is expected to be on production in late Second Quarter and the sixth well is expected to be on production in late Second Quarter /early Third Quarter 2024. The fifth well began drilling in February 2024 and is currently in the early stages of flowing back the completion fluids.

After 13 days of flowback it is currently producing over 700 BOPD & 850 MCFD. The sixth well began drilling in May 2024 and is currently at a measured depth of 20,014? with over 9,000?

of that being in the lateral portion of the well. Royale recently received an unsolicited offer from one of the major oil companies operating in this area to purchase its ownership in this project. The board has reviewed and declined this offer.