Royale Energy has received regulatory approval to build drilling locations for its scheduled third quarter wells. Having weathered the trying times for the industry this year, the company is actively working toward the drilling of several new developmental wells designed to add production before the winter heating season begins.
Receipt of this important approval marks one of the key requirements necessary to begin drilling. To meet the capital requirements for this drilling, the company has requested approval of an S3 registration with the Securities and Exchange Commission (SEC) on April 22, 2009. This registration is also a part of the company’s plan for compliance with NASDAQ's Net Stockholders Equity requirement, noted on April 1, 2009.