This morning Gasco announced they sold 160 net acres in the Uinta Basin for $7.5 million:
"Consistent with the Company's stated goal of divesting of certain non-core assets, during the third quarter 2008 Gasco sold to the operator its interest in four gross producing wells (one net producing well), leasehold and proven reserves in the Prickly Pear Field in the West Tavaputs area of the Uinta Basin. Proceeds to Gasco from the divestiture were $7.5 million with an effective date of August 21, 2008. The sale includes, as of December 31, 2007, approximately 640 gross acres (160 net acres) with 6.0 Bcfe of proven reserves, of which approximately 1.7 Bcfe was developed. The sale represents approximately 1.0 million cubic feet per day of net production."
With 15,000 net acres in Utah a comparison of the GSX sale would be for Royale to receive $700 million for its Utah property once it drills approximately 100 wells. Of course the GSX acreage may be better or the ROYL acreage may be better. Time will tell.
Better yet V 20-2 will tell a lot.
Its great ASPN could sell all its leases and wells in California for $8.5 million. But GSX was able to get $7.5 million for 160 acres and 1 net well.
ROYL has 15,000 net acres in Utah. Do the math. It is Utah, not California, where the possible reserves are located.
Look at MPET. A large institutional investor has offered to buy shares for double what they are trading for in the market because of the potential of their possible reserves.
This bodes well for ROYL.
If GSX had a well like the Stewart well the 160 acres and one net well would have sold for much more than $7.5 million.
Stewart was supposed to drill another well due south of its well and parallel to the ROYL property line. Clearly the big time gas is very close to ROYL.
I fully believe the big time gas is on ROYL's property and they just need to prove it.
ROYL has the deep Entrada and Dakota gas like Whiting. Gasco's so far doesn't have the deeper gas like ROYL and WLL.
ROYL's acreage should be more valuable than the GSX acreage in the Uinta Basin.
ROYL would get $28 per share if they drilled one well on every 160 acres and sold it for 1/3 of what GSX sold its Uinta Basin well and acreage for in August.
Natural gas prices were $7 in August, not $12 like they were in May.
Pearl, you are clearly a blind basher and a short. Sorry, but your posts are all designed to drive the stock lower and trick someone into selling.
This company has cash and very little debt. They also have terrific prospects in Utah. California alone is worth more than than $2 per share.
They are one terrific well away and that could come any day.
The whole board should ignore you.
I am not short. In fact, I am not allowed to trade short in my account. I have ROYL as part of my 401K account with Fidelity. I am doing exactly what I say - buying and selling on dips and peaks. A more accurate term would be swing trading. I started out all LONG, but had to trade. Does it really make any difference what type of trader I am. I am betting the price of ROYL will go down from $2.51 when I sold my last batch. I have clearly stated why, and am not sure I will even buy back.
So, rather than worry about what type of trader I am, why don't you address the points in the email about the reasons why I and other have begun to worry about ROYL. So you are suggesting putting me on ignore because I am a "short". That's not a good reason to put somebody on ignore. Why don't you put me on ignore because my posts are useless or I am a blind basher or pumper. My posts haven't change since I started on this stock back in June. The only thing that has changed our conditions and my assessment. By the way, I am still probably holding more shares than you ever have.
Amazing that people are willing to sell their share of Royale Energy for $20 million when GSX sold 1 well and 160 acres in the Uinta Basin for $7.5 million.
The 160 acres GSX sold contained no deep Entrada, Morrison, or Dakota gas. The value was based on the Mancos Shale and the Mesa Verde.
GSX is seeing success with the Mancos Shale. However the Dakota well they were drilling was non-commercial in the Morrison and Dakota.
It looks like ROYL is now the only pure play in the Uinta Basin on the upside potential of the Entrada and Dakota. All of the other companies like APC are much larger and have the Uinta Basin only represents a fraction of their assets.