Royale Energy Inc

Item 13 Certain Relationships and Related Transactions, and Director Independence

Our Chief Executive, Johnny Jordan, has accrued certain unpaid salaries, which were assumed by the Company. At December 31, 2023 Mr. Jordan was owed $46,926 in accrued unpaid guaranteed payments.

In 2018 the board of directors terminated the policy allowing employees and directors to participate, at cost, in wells drilled by the Company. Under the prior policy our former Chief Financial Officer and current board of director’s secretary, Stephen Hosmer, had participated individually in 179 wells. At December 31, 2023, the Company had a receivable balance of $18,495 due from Stephen Hosmer and $7,654 from Donald Hosmer for normal drilling and lease operating expenses.

At December 31, 2023, we had a total payable of $23,087 due to RMX and its subsidiary, Matrix Oil Corporation, related to certain lease operating expenses for wells operated by RMX, and also had prepaid expenses of $382,520 primarily for future plugging and abandonment costs for wells operated by RMX. During 2023, RMX Resources LLC operated various oil wells we have interests in, from which we received revenues of approximately $374,000 and incurred lease operating costs of approximately $181,000. At December 31, 2023, we had a total payable of $164,669 owed to current and former board members for directors fees.

Royale had outstanding accrued unpaid guaranteed payments for unpaid salaries for periods predating their joining the Company due to certain former Matrix employees. At December 31, 2023, the balance due was $1,616,205. At December 31, 2023, Royale also had accrued unpaid liabilities of $1,306,605 due to certain former Matrix employees for periods predating their joining the Company.

The board has determined that directors John Sullivan, Chris Parada, Jonathan Gregory and Jeff Kerns qualify as independent directors.