During this period of sustained economic downturn, Royale Energy, Inc. (NASDAQ:ROYL) anticipated and acted on the need for cost containment. These measures resulted in a 13.6% reduction in total expenses for first quarter 2009 compared to the same period in 2008. A net loss of $891,056 was an improvement over the loss of $927,460 a year ago.
“While the industry saw a 70% drop in product prices, we experienced only a 51% decline in oil & gas revenue,” notes Stephen Hosmer. “The cost containment measures that we began in 2nd quarter 2008 resulted in an improvement in our operating margins, positioning us to capitalize on the emerging market recovery later 2009.”
As noted in the latest Operational Update, Royale’s plans for upcoming activity have the potential to more than double production in time for sale into the expected improved price environment.
“As we have experienced from our 23 year history, we have always been able to act upon the opportunity during the low point of market cycles,” Don Hosmer points out. “The lower current drilling cost presents ideal timing to develop our inventory of quality drilling prospects.”
Tags: Energy, expenses, Gas, reduction, Royale
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