Royale Energy Inc

As of December 31, 2023, Royale had proved developed reserves of 357,940 MCF and total proved reserves of 473,540 MCF of natural gas. For the same period, Royale also had proved developed oil and natural gas liquid combined reserves of 138,060 BBL and total proved oil and natural gas liquid combined reserves of 217,780 BBL.

As of December 31, 2022, Royale had proved developed reserves of 942,000 MCF and total proved reserves of 1,133,300 MCF of natural gas. For the same period, Royale also had proved developed oil and natural gas liquid combined reserves of 182,000 BBL and total proved oil and natural gas liquid combined reserves of 372,300 BBL.

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.

Oil and gas reserve estimates and the discounted present value estimates associated with the reserve estimates are based on numerous engineering, geological and operational assumptions that generally are derived from limited data.