Document_And_Entity_Informatio
Document And Entity Information | 3 Months Ended |
Mar. 31, 2014 | |
Document and Entity Information [Abstract] | ' |
Entity Registrant Name | 'ROYALE ENERGY INC |
Document Type | '10-Q |
Current Fiscal Year End Date | '--12-31 |
Entity Common Stock, Shares Outstanding | 14,942,728 |
Amendment Flag | 'false |
Entity Central Index Key | '0000864839 |
Entity Current Reporting Status | 'Yes |
Entity Voluntary Filers | 'No |
Entity Filer Category | 'Smaller Reporting Company |
Entity Well-known Seasoned Issuer | 'No |
Document Period End Date | 31-Mar-14 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q1 |
BALANCE_SHEETS
BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Current Assets | ' | ' |
Cash and Cash Equivalents | $3,664,400 | $4,878,233 |
Accounts Receivable, net | 2,331,501 | 1,680,792 |
Prepaid Expenses | 636,736 | 684,848 |
Available for Sale Securities | 16,448 | 16,448 |
Inventory | 317,043 | 317,043 |
Total Current Assets | 6,966,128 | 7,577,364 |
Other Assets | 946 | 946 |
Oil and Gas Properties, at cost, (successful efforts basis), Equipment and Fixtures | 7,304,143 | 7,237,382 |
Total Assets | 14,271,217 | 14,815,692 |
Current Liabilities: | ' | ' |
Accounts Payable and Accrued Expenses | 5,300,541 | 5,332,323 |
Current Portion of Long-Term Debt | 27,786 | 22,916 |
Current Portion of Deferred Tax Liability | 1,775 | 1,775 |
Deferred Drilling Obligations | 6,406,279 | 6,125,933 |
Total Current Liabilities | 11,736,381 | 11,482,947 |
Noncurrent Liabilities: | ' | ' |
Asset Retirement Obligation | 840,156 | 862,369 |
Note Payable | 1,468,493 | 1,477,084 |
Total Noncurrent Liabilities | 2,308,649 | 2,339,453 |
Total Liabilities | 14,045,030 | 13,822,400 |
Stockholders' Equity: | ' | ' |
Common Stock, no par value, authorized 20,000,000 shares, 14,942,728 shares outstanding. | 37,996,866 | 37,996,866 |
Convertible preferred stock, Series AA, no par value, 147,500 shares authorized; 52,784 outstanding | 154,014 | 154,014 |
Accumulated (Deficit) | -38,238,493 | -37,471,388 |
Paid in Capital | 303,855 | 303,855 |
Accumulated Other Comprehensive Income | 9,945 | 9,945 |
Total Stockholders' Equity | 226,187 | 993,292 |
Total Liabilities and Stockholders' Equity | $14,271,217 | $14,815,692 |
BALANCE_SHEETS_Parentheticals
BALANCE SHEETS (Parentheticals) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Common stock, no par value (in Dollars per share) | ' | ' |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common Stock, shares outstanding | 14,942,728 | 14,942,728 |
Convertible Preferred Stock, Series AA, no par value (in Dollars per share) | ' | ' |
Convertible Preferred Stock, Series AA, shares authorized | 147,500 | 147,500 |
Convertible preferred stock, Series AA, shares outstanding | 52,784 | 52,784 |
STATEMENTS_OF_OPERATIONS_Unaud
STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Revenues: | ' | ' |
Sale of Oil and Gas | $825,556 | $330,895 |
Supervisory Fees and Other | 153,475 | 140,771 |
Total Revenues | 979,031 | 471,666 |
Costs and Expenses: | ' | ' |
General and Administrative | 835,061 | 860,013 |
Lease Operating | 453,536 | 267,209 |
Delay Rentals | 19,494 | 25,613 |
Legal and Accounting | 218,652 | 171,631 |
Marketing | 95,196 | 37,626 |
Depreciation, Depletion and Amortization | 89,826 | 63,281 |
Total Costs and Expenses | 1,711,765 | 1,425,373 |
Loss on Turnkey Drilling Programs | -19,033 | -79,899 |
Loss From Operations | -751,767 | -1,033,606 |
Other Income (Expense): | ' | ' |
Interest Expense | -15,338 | -200,868 |
Net Loss | ($767,105) | ($1,234,474) |
Basic Loss Per Share (in Dollars per share) | ($0.05) | ($0.10) |
Diluted Loss Per Share (in Dollars per share) | ($0.05) | ($0.10) |
STATEMENTS_OF_CASH_FLOWS_Unaud
STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' |
Net Loss | ($767,105) | ($1,234,474) |
Adjustments to Reconcile Net Loss to Net Cash (Used in) Provided by Operating Activities: | ' | ' |
Depreciation, Depletion and Amortization | 89,826 | 63,281 |
Loss on Turnkey Drilling Programs | 19,033 | 79,899 |
Debt Discount Amortization, net of adjustments | 0 | 178,083 |
Decrease (Increase) in: | ' | ' |
Accounts Receivable | -650,709 | 2,591,355 |
Prepaid Expenses and Other Assets | 48,112 | -572,460 |
Increase (Decrease) in: | ' | ' |
Accounts Payable and Accrued expenses | -53,995 | -681,981 |
Deferred Drilling Obligations | 280,346 | 20,630 |
Net Cash (Used in) Provided (Used) by Operating Activities | -1,034,492 | 444,333 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' |
Expenditures for Oil and Gas Properties and Other Capital Expenditures | -560,773 | -133,527 |
Proceeds from Turnkey Drilling Programs | 385,153 | 0 |
Net Cash Used by Investing Activities | -175,620 | -133,527 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' |
Principal Payments on Long-Term Debt | -3,721 | -1,183,333 |
Proceeds from Sale of Common Stock | 0 | 1,021,668 |
Net Cash Used by Financing Activities | -3,721 | -161,665 |
Net Increase in Cash and Cash Equivalents | -1,213,833 | 149,141 |
Cash at Beginning of Year | 4,878,233 | 1,489,930 |
Cash at End of Period | 3,664,400 | 1,639,071 |
Cash Paid for Interest | 15,338 | 22,785 |
Cash Paid for Taxes | $1,900 | $800 |
NOTE_1
NOTE 1 | 3 Months Ended |
Mar. 31, 2014 | |
Disclosure Text Block [Abstract] | ' |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | ' |
NOTE 1 – In the opinion of management, the accompanying unaudited financial statements include all adjustments, consisting only of normally recurring adjustments, necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented. The results of operations for the three month period are not, in management’s opinion, indicative of the results to be expected for a full year of operations. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company’s latest annual report. | |
NOTE_2_LOSS_PER_SHARE
NOTE 2 - LOSS PER SHARE | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
NOTE 2 – LOSS PER SHARE | |||||||||||||
Basic and diluted earnings (loss) per share are calculated as follows: | |||||||||||||
For the Three Months ended | |||||||||||||
March 31, 2014 | |||||||||||||
Loss | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Basic Loss Per Share: | |||||||||||||
Net loss available to common stock | $ | (767,105 | ) | 14,942,728 | $ | (0.05 | ) | ||||||
Diluted Loss Per Share: | |||||||||||||
Effect of dilutive securities and stock options | 0 | 0 | 0 | ||||||||||
Net loss available to common stock | $ | (767,105 | ) | 14,942,728 | $ | (0.05 | ) | ||||||
For the Three Months ended | |||||||||||||
March 31, 2013 - Restated | |||||||||||||
Loss | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Basic Loss Per Share: | |||||||||||||
Net income available to common stock | $ | (1,234,474 | ) | 12,673,243 | $ | (0.10 | ) | ||||||
Diluted Loss Per Share: | |||||||||||||
Effect of dilutive securities and stock options | 0 | 0 | 0 | ||||||||||
Net loss available to common stock | $ | (1,234,474 | ) | 12,673,243 | $ | (0.10 | ) | ||||||
For the three months ended March 31, 2014 and 2013, Royale Energy had dilutive securities of 406,225 and 643,017, respectively. These securities were not included in the dilutive loss per share due to their antidilutive nature. | |||||||||||||
NOTE_3_OIL_AND_GAS_PROPERTIES_
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | ||||||||
Oil and Gas Exploration and Production Industries Disclosures [Text Block] | ' | ||||||||
NOTE 3 – OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES | |||||||||
Oil and gas properties, equipment and fixtures consist of the following: | |||||||||
March 31, 2014 | 31-Dec-13 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Oil and Gas | |||||||||
Producing properties, including drilling costs | $ | 5,035,269 | $ | 4,862,657 | |||||
Undeveloped properties | 2,737,596 | 2,779,672 | |||||||
Lease and well equipment | 4,099,321 | 4,075,320 | |||||||
11,872,186 | 11,717,649 | ||||||||
Accumulated depletion, depreciation & amortization | (7,127,452 | ) | (7,065,362 | ) | |||||
4,744,734 | 4,652,287 | ||||||||
Commercial and Other | |||||||||
Real estate, including furniture and fixtures | $ | 2,503,803 | $ | 2,503,803 | |||||
Vehicles | 120,314 | 120,314 | |||||||
Furniture and equipment | 1,300,523 | 1,300,523 | |||||||
3,924,640 | 3,924,640 | ||||||||
Accumulated depreciation | (1,365,231 | ) | (1,339,545 | ) | |||||
2,559,409 | 2,585,095 | ||||||||
$ | 7,304,143 | $ | 7,237,382 | ||||||
The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB Accounting Standards Codification requires that we evaluate all existing capitalized exploratory well costs and disclose the extent to which any such capitalized costs have become impaired and are expensed or reclassified during a fiscal period. We did not make any additions to capitalized exploratory well costs pending a determination of proved reserves during the periods in 2014 or 2013. | |||||||||
NOTE_4_RESTATEMENT_TO_REFLECT_
NOTE 4 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||
Accounting Changes and Error Corrections [Text Block] | ' | ||||||||
NOTE 4 – RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY | |||||||||
The Company has restated its previously issued 2013 financial statements for the correction of an error in the method of revenue recognition. The effect on the Company’s issued March 31, 2013 financial statements is summarized below: | |||||||||
As Previously | |||||||||
Reported | As Restated | ||||||||
Statement of Operations for the period ended March 31, 2013: | |||||||||
Turnkey Drilling and Development Expense | 43,143 | 0 | |||||||
Lease Operating Expense | 292,822 | 267,209 | |||||||
Delay Rentals Expense | 0 | 25,613 | |||||||
Depreciation, Depletion and Amortization Expense | 221,360 | 63,281 | |||||||
Total Costs and Expenses | 1,626,595 | 1,425,373 | |||||||
Net Loss | (1,355,797 | ) | (1,234,474 | ) | |||||
NOTE_2_LOSS_PER_SHARE_Tables
NOTE 2 - LOSS PER SHARE (Tables) | 3 Months Ended | ||||||||||||
Mar. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'Basic and diluted earnings (loss) per share are calculated as follows: | ||||||||||||
For the Three Months ended | |||||||||||||
March 31, 2014 | |||||||||||||
Loss | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Basic Loss Per Share: | |||||||||||||
Net loss available to common stock | $ | (767,105 | ) | 14,942,728 | $ | (0.05 | ) | ||||||
Diluted Loss Per Share: | |||||||||||||
Effect of dilutive securities and stock options | 0 | 0 | 0 | ||||||||||
Net loss available to common stock | $ | (767,105 | ) | 14,942,728 | $ | (0.05 | ) | ||||||
For the Three Months ended | |||||||||||||
March 31, 2013 - Restated | |||||||||||||
Loss | Shares | Per-Share | |||||||||||
(Numerator) | (Denominator) | Amount | |||||||||||
Basic Loss Per Share: | |||||||||||||
Net income available to common stock | $ | (1,234,474 | ) | 12,673,243 | $ | (0.10 | ) | ||||||
Diluted Loss Per Share: | |||||||||||||
Effect of dilutive securities and stock options | 0 | 0 | 0 | ||||||||||
Net loss available to common stock | $ | (1,234,474 | ) | 12,673,243 | $ | (0.10 | ) |
NOTE_3_OIL_AND_GAS_PROPERTIES_1
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Oil and Gas Exploration and Production Industries Disclosures [Abstract] | ' | ||||||||
Schedule of Oil and Gas Properties, Equipment and Fixtures [Table Text Block] | 'Oil and gas properties, equipment and fixtures consist of the following: | ||||||||
March 31, 2014 | 31-Dec-13 | ||||||||
(Unaudited) | (Unaudited) | ||||||||
Oil and Gas | |||||||||
Producing properties, including drilling costs | $ | 5,035,269 | $ | 4,862,657 | |||||
Undeveloped properties | 2,737,596 | 2,779,672 | |||||||
Lease and well equipment | 4,099,321 | 4,075,320 | |||||||
11,872,186 | 11,717,649 | ||||||||
Accumulated depletion, depreciation & amortization | (7,127,452 | ) | (7,065,362 | ) | |||||
4,744,734 | 4,652,287 | ||||||||
Commercial and Other | |||||||||
Real estate, including furniture and fixtures | $ | 2,503,803 | $ | 2,503,803 | |||||
Vehicles | 120,314 | 120,314 | |||||||
Furniture and equipment | 1,300,523 | 1,300,523 | |||||||
3,924,640 | 3,924,640 | ||||||||
Accumulated depreciation | (1,365,231 | ) | (1,339,545 | ) | |||||
2,559,409 | 2,585,095 | ||||||||
$ | 7,304,143 | $ | 7,237,382 |
NOTE_4_RESTATEMENT_TO_REFLECT_1
NOTE 4 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY (Tables) | 3 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Accounting Changes and Error Corrections [Abstract] | ' | ||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | 'The Company has restated its previously issued 2013 financial statements for the correction of an error in the method of revenue recognition. The effect on the Company’s issued March 31, 2013 financial statements is summarized below: | ||||||||
As Previously | |||||||||
Reported | As Restated | ||||||||
Statement of Operations for the period ended March 31, 2013: | |||||||||
Turnkey Drilling and Development Expense | 43,143 | 0 | |||||||
Lease Operating Expense | 292,822 | 267,209 | |||||||
Delay Rentals Expense | 0 | 25,613 | |||||||
Depreciation, Depletion and Amortization Expense | 221,360 | 63,281 | |||||||
Total Costs and Expenses | 1,626,595 | 1,425,373 | |||||||
Net Loss | (1,355,797 | ) | (1,234,474 | ) |
NOTE_2_LOSS_PER_SHARE_Details
NOTE 2 - LOSS PER SHARE (Details) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Share [Abstract] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 406,225 | 643,017 |
NOTE_2_LOSS_PER_SHARE_Details_
NOTE 2 - LOSS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Basic Loss Per Share: | ' | ' |
Net loss available to common stock | ($0.05) | ($0.10) |
Diluted Loss Per Share: | ' | ' |
Net loss available to common stock | ($0.05) | ($0.10) |
Loss (Numerator) [Member] | ' | ' |
Basic Loss Per Share: | ' | ' |
Net loss available to common stock | ($767,105) | ($1,234,474) |
Diluted Loss Per Share: | ' | ' |
Effect of dilutive securities and stock options | 0 | 0 |
Net loss available to common stock | ($767,105) | ($1,234,474) |
Shares (denominator) [Member] | ' | ' |
Basic Loss Per Share: | ' | ' |
Net loss available to common stock | 14,942,728 | 12,673,243 |
Diluted Loss Per Share: | ' | ' |
Effect of dilutive securities and stock options | 0 | 0 |
Net loss available to common stock | 14,942,728 | 12,673,243 |
Per-share amount [Member] | ' | ' |
Basic Loss Per Share: | ' | ' |
Net loss available to common stock | ($0.05) | ($0.10) |
Diluted Loss Per Share: | ' | ' |
Effect of dilutive securities and stock options | $0 | $0 |
Net loss available to common stock | ($0.05) | ($0.10) |
NOTE_3_OIL_AND_GAS_PROPERTIES_2
NOTE 3 - OIL AND GAS PROPERTIES, EQUIPMENT AND FIXTURES (Details) - Schedule of Oil and Gas Properties, Equipment and Fixtures (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
Oil and Gas | ' | ' |
Producing properties, including drilling costs | $5,035,269 | $4,862,657 |
Undeveloped properties | 2,737,596 | 2,779,672 |
Lease and well equipment | 4,099,321 | 4,075,320 |
11,872,186 | 11,717,649 | |
Accumulated depletion, depreciation & amortization | -7,127,452 | -7,065,362 |
4,744,734 | 4,652,287 | |
Commercial and Other | ' | ' |
Real estate, including furniture and fixtures | 2,503,803 | 2,503,803 |
Vehicles | 120,314 | 120,314 |
Furniture and equipment | 1,300,523 | 1,300,523 |
3,924,640 | 3,924,640 | |
Accumulated depreciation | -1,365,231 | -1,339,545 |
2,559,409 | 2,585,095 | |
$7,304,143 | $7,237,382 |
NOTE_4_RESTATEMENT_TO_REFLECT_2
NOTE 4 - RESTATEMENT TO REFLECT CHANGE IN REVENUE RECOGNITION POLICY (Details) - Schedule of Error Corrections and Prior Period Adjustments (USD $) | 3 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Turnkey Drilling and Development Expense | ($19,033) | ($79,899) |
Lease Operating Expense | -751,767 | -1,033,606 |
Depreciation, Depletion and Amortization Expense | 89,826 | 63,281 |
Total Costs and Expenses | 1,711,765 | 1,425,373 |
Net Loss | -767,105 | -1,234,474 |
Scenario, Previously Reported [Member] | ' | ' |
Turnkey Drilling and Development Expense | ' | 43,143 |
Lease Operating Expense | ' | 292,822 |
Delay Rentals Expense | ' | 0 |
Depreciation, Depletion and Amortization Expense | ' | 221,360 |
Total Costs and Expenses | ' | 1,626,595 |
Net Loss | ' | -1,355,797 |
Scenario, Adjustment [Member] | ' | ' |
Turnkey Drilling and Development Expense | ' | 0 |
Lease Operating Expense | ' | 267,209 |
Delay Rentals Expense | ' | 25,613 |
Depreciation, Depletion and Amortization Expense | ' | 63,281 |
Total Costs and Expenses | ' | 1,425,373 |
Net Loss | ' | ($1,234,474) |