Royale Energy Expands Interest in Pradera Fuego Project Through Farm-Out Agreement
Rhea-AI Summary
Royale Energy (OTCQB: ROYL) has expanded its presence in the Pradera Fuego project through a Farm-out agreement, increasing its working interest by 2.5% to a total of 7.5% in the 17,000-acre Texas project. The agreement was made with an entity controlled by CEO Johnny Jordan.
The project includes 39 Barnett and 44 Woodford future drilling locations. Currently, eight producing Barnett wells generate 3,583 gross BOEPD, with 201 net BOEPD attributable to Royale and its investors. The recently completed Irma 1H well is flowing at 1,196 BOEPD. The company plans to drill four new wells in the next 12 months.
Positive
- Increased working interest from 5% to 7.5% in the 17,000-acre project
- Strong production of 3,583 gross BOEPD from existing wells
- Robust development pipeline with 83 future drilling locations
- New Irma 1H well showing strong initial production of 1,196 BOEPD
- Four new wells planned for next 12 months indicating growth momentum
Negative
- Transaction with CEO-controlled entity may raise corporate governance concerns
- Remains a non-operated working interest, limiting operational control
News Market Reaction
On the day this news was published, ROYL gained 1.69%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
SAN DIEGO, Sept. 17, 2025 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (OTCQB: ROYL) today announced the completion of a Farm-out agreement granting Royale drilling rights to an additional
The Farm-out agreement was consummated with an entity controlled by Johnny Jordan, Royale’s Chief Executive Officer. The Pradera Fuego asset provides a robust development pipeline for Royale, including 39 future Barnett drilling locations and 44 future Woodford locations, supporting long-term growth for the company and its investor drilling programs. Royale anticipates drilling four new wells over the next 12 months.
Royale currently maintains interest in all eight producing Barnett wells within the Pradera Fuego project. Collectively, these wells are producing approximately 3,583 gross BOEPD, with 201 net BOEPD attributable to Royale and its direct working interest investors. The most recent well, the Irma 1H, was recently drilled, completed, and is currently flowing at 1,196 BOEPD on a 50/64” choke. Early results from the Irma 1H are consistent with the strong performance of the project’s other producing wells.
“The Pradera Fuego project continues to deliver exceptional results and represents a valuable source of long-term growth for Royale and our shareholders,” said Johnny Jordan, CEO of Royale Energy.
About Royale Energy, Inc.
Royale Energy, Inc. (OTCQB: ROYL) is an independent exploration and production company headquartered in San Diego, California. The company focuses on the acquisition, development, and marketing of oil and natural gas, with primary operations in Texas’s Permian Basin.
Forward-Looking Statements
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations and assumptions and involve risks and uncertainties that could cause actual results to differ materially. Factors that may affect future results are discussed in Royale Energy’s filings with the Securities and Exchange Commission.
Contact:
Royale Energy, Inc.
For more information, please visit https://www.royl.com or contact Investor Relations
IR@royl.com
619-383-6600
FAQ
What is Royale Energy's new working interest percentage in the Pradera Fuego project?
How many future drilling locations does ROYL have in the Pradera Fuego project?
What is the current production rate from Royale Energy's Pradera Fuego wells?
How many new wells does Royale Energy plan to drill in the next year?
What is the production rate of the new Irma 1H well?
