Royale Energy Funds 10-Q 13 May 14 2014 Q1 Quarterly report Financial data

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)