Royale Energy says that after reaching a total depth of 6200 feet, it has set pipe on what the company believes to be a significant new discovery.
The Goddard 7-1 which commenced drilling on September 23rd was located one mile north of the boundary of the company's successful Lonestar field. The well was drilled to test a significant 3D seismic amplitude at a previously unexplored depth. At this depth the well encountered higher pressure than those produced in the Lonestar field increasing the expected rate of gas recovery.
This new field discovery provides Royale Energy with significant new development opportunities to increase its production and natural gas reserves. Current prices for its PG&E citygate is $5.04 MCF. The Company has 2,000 MCF per day sold through December 2009 at $4.85 MCF.