Royale Energy Inc

During 2023, our overall proved developed and undeveloped oil reserves decreased by 41.5% and our previously estimated proved developed and undeveloped oil reserve quantities were revised downward by approximately 185 thousand barrels. This downward revision was mainly the result of a decrease in proved undeveloped oil reserves from drilling locations which the Company had previously estimated. Our overall proved developed and undeveloped natural gas reserves decreased by 58.2% and our previously estimated proved developed and undeveloped natural gas reserve quantities were revised downward by approximately 720 thousand cubic feet of natural gas. This downward revision was mainly the result of a decrease in proved undeveloped natural gas reserves from drilling locations which the Company had previously estimated. See Note 15 – Supplemental Information About Oil and Gas Producing Activities (Unaudited), to our Financial Statements.

During 2022, our overall proved developed and undeveloped natural gas reserves decreased by 76.4% and our previously estimated proved developed and undeveloped natural gas reserve quantities were revised downward by approximately 1.3 million cubic feet of natural gas. This downward revision was mainly the result of a decrease in proved undeveloped oil reserves from drilling locations which the Company had previously estimated. See Note 15 – Supplemental Information About Oil and Gas Producing Activities (Unaudited)to our Financial Statements.