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    Small-Cap Stock on Watch: Royale Energy Inc. (ROYL)

    Small-Cap Stock on Watch: Royale Energy Inc. (ROYL)

    Royale Energy Inc. (ROYL) shares spiked 12.67% to close the Tuesday’s session at $3.29, boosted by news the independent energy company has made two more natural gas discoveries in its core area. Over 935 K shares traded hands during the session, versus the 10-day average of 248.73 K.

    Over the last 52 weeks, the stock has ranged from a low of $1.73 to a high of $7.90.  It is currently above its 50-day and 200-day moving averages, both set at $2.96.

    Royal Energy is focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains. It has been a leading independent producer of oil and natural gas for over 20 years. The company’s strength is continually reaffirmed by investors who participate in funding over 50% of the company’s new projects.

    In its release, Royal Energy said the Royale Jewel, which is in close proximity to the company’s production facilities, has been drilled to its total depth. Three separate Forbes sands were encountered and the deepest zone has been completed with a stabilized production rate of 3 million cubic ft. of natural gas per day. The well is expected to commence selling gas in two weeks.

    Meanwhile, the Royale Bristol was drilled to a total depth of 6,800 ft. and found 40 ft. of Forbes filled natural gas sands. Production casing has been set and the well has a bottom hole shut in pressure of 2,200 psi.

    Royal Energy has also continued its workover program by recompleting another existing well. The Parks well is now producing from a shallower zone at a stabilized rate of 190,000 cubic ft. per day.

    “These new discoveries are a confirmation of the significance of Royale’s recently approved new 3D seismic survey,” the company said in a statement.

    Shares of ROYL have gained 5.8% in the last five days; 6.5% in the last month; and 56.7% year-to-date.

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