Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File No. 000-55912

ROYALE ENERGY, INC.

(Exact name of registrant as specified in its charter)

Delaware

81-4596368

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

1530 Hilton Head Rd, Suite 205

El Cajon, CA 92021

(Address of principal executive offices) (Zip Code)

(619) 383-6600

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. Check one:

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☒	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

At November 1, 2024, a total of 96,600,302 shares of registrant’s common stock were outstanding.

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION	3

Item 1. Financial Statements	3

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations	17

Item 3. Quantitative and Qualitative Disclosures About Market Risk	20

Item 4. Controls and Procedures	20

PART II. OTHER INFORMATION	21

Item 1. Legal Proceedings	21

Item 1A. Risk Factors	21

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	21

Item 3. Defaults Upon Senior Securities	21

Item 4. Mine Safety Disclosures	21

Item 5. Other Information	21

Item 6. Exhibits	21

Signatures	22

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2024		December 31, 2023
ASSETS	(unaudited)
Current Assets
Cash and Cash Equivalents	$	1,737,465	$	2,202,521
Restricted Cash		4,032,800		3,325,000
Other Receivables, net		622,921		1,036,401
Revenue Receivables		513,418		878,378
Prepaid Expenses		557,396		558,169
Deferred Drilling Costs		1,507,747		1,669,149
Total Current Assets		8,971,747		9,669,618

Right of Use Assets - Leases		261,129		254,008
Other Assets		589,865		589,865
Oil and Gas Properties, (Successful Efforts Basis), Equipment and Fixtures, net		5,061,261		2,401,902
Total Assets	$	14,884,002	$	12,915,393

See notes to unaudited condensed consolidated financial statements.

Table of Contents

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	September 30, 2024			December 31, 2023
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	(unaudited)
Current Liabilities:
Accounts Payable and Accrued Expenses	$	6,240,895		$	5,482,074
Royalties Payable		611,833			612,925
Due to RMX Resources, LLC		23,087			23,087
Accrued Liabilities		653,730			215,693
Asset Retirement Obligation - Current		1,012,500			675,000
Deferred Drilling Obligation		11,328,332			9,761,927
Operating Leases - Current		92,152			83,230
Total Current Liabilities		19,962,529			16,853,936

Noncurrent Liabilities:
Accrued Liabilities - Long Term		1,306,605			1,306,605
Accrued Unpaid Guaranteed Payments		1,616,205			1,616,205
Notes Payable to Related Parties		1,400,000			-
Operating Leases - Long-Term		169,292			171,439
Asset Retirement Obligation		4,081,065			4,151,847
Total Liabilities		28,535,696			24,100,032

Mezzanine Equity:
Convertible Preferred Stock, Series B, $10 par value, 3.5% annual dividend, 2,466,455 and 2,444,885 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		24,664,543			24,448,850

Stockholders' Equity (Deficit):
Common Stock, .001 Par Value, 280,000,000 Shares Authorized, 71,863,829 and 70,564,188 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.		71,863			70,564
Additional Paid in Capital		54,653,936			54,619,236
Accumulated Deficit		(93,042,036	)		(90,323,289	)
Total Stockholders' Equity (Deficit)		(38,316,237	)		(35,633,489	)
Total Liabilities and Stockholders' Equity (Deficit)	$	14,884,002		$	12,915,393

See notes to unaudited condensed consolidated financial statements.

Table of Contents

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

	For the three months ended						For the nine months ended
	September 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Revenues:
Oil, NGL and Gas Sales	$	559,709		$	458,954		$	1,749,120		$	1,447,698
Supervisory Fees and Other		14,705			8,081			44,963			32,754
Total Revenues		574,414			467,035			1,794,083			1,480,452

Costs and Expenses:
Oil and Gas Lease Operating		512,400			316,363			1,292,525			1,331,165
Depreciation, Depletion and Amortization		56,547			57,317			253,726			231,224
Well Equipment Write Down		-			-			-			9,840
Lease Impairment		337,500			-			400,554			-
Legal and Accounting		142,950			95,667			485,114			368,810
Bad Debt Expense		103,447			-			279,491			-
Marketing		128,211			83,391			269,984			230,282
General and Administrative		369,646			384,373			1,197,677			1,262,542
Total Costs and Expenses		1,650,701			937,111			4,179,071			3,433,863

Gain (Loss) on Turnkey Drilling		-			(1,077	)		527,715			1,338,305

Loss From Operations		(1,076,287	)		(471,153	)		(1,857,273	)		(615,106	)
Other Income (Expense):
Interest Expense		(108,004	)		(327	)		(207,744	)		(1,383	)
Other Gain		-			750			-			112,728
Net Loss		(1,184,291	)		(470,730	)		(2,065,017	)		(503,761	)
Less: Preferred Stock Dividend		221,410			213,807			653,730			629,007
Net Loss available to common stock	$	(1,405,701	)	$	(684,537	)	$	(2,718,747	)	$	(1,132,768	)

Shares used in computing Basic Net Loss per share		71,863,529			67,684,188			71,693,073			64,982,535

Basic and Diluted (Loss) Per Share	$	(0.02	)	$	(0.01	)	$	(0.04	)	$	(0.02	)
Shares used in computing Diluted Net Loss per share		71,863,529			67,684,188			71,693,073			64,982,535
Diluted Net Income (Loss) per Share	$	(0.02	)	$	(0.01	)	$	(0.04	)	$	(0.02	)

See notes to unaudited condensed consolidated financial statements.

Table of Contents

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

	For the Nine Months Ended
	September 30, 2024			September 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$	(2,065,017	)	$	(503,761	)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation, Depletion and Amortization		253,726			231,224
Gain on Turnkey Drilling Programs		(527,715	)		(1,338,305	)
Lease Impairment		400,554			-
Bad debt expense		279,491			-
Well Equipment Write Down		-			9,840
Stock Based Compensation		35,999			108,001
Gain on Other		-			(112,728	)
Right of use asset depreciation		6,615			8,252
(Increase) Decrease in:
Other & Revenue Receivables		498,949			342,440
Prepaid Expenses and Other Assets		773			777,558
Increase (Decrease) in:
Accounts Payable and Accrued Expenses		(263,667	)		278,542
Royalties Payable		(1,092	)		-
Net Cash Used in Operating Activities		(1,381,384	)		(198,937	)

CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for Oil and Gas Properties and Other Capital Expenditures		(4,706,411	)		(4,571,163	)
Proceeds from Turnkey Drilling Programs		4,937,500			4,572,500
Net Cash Provided by Investing Activities		231,089			1,337

CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Related Party Note Payable		1,400,000			-
Principal Payments on Long-Term Debt		(6,961	)		(8,916	)
Net Cash Provided by (Used in) Financing Activities		1,393,039			(8,916	)

Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash		242,744			(206,516	)

Cash, Cash Equivalents, and Restricted Cash at Beginning of Period		5,527,521			3,900,134

Cash, Cash Equivalents, and Restricted Cash at End of Period	$	5,770,265		$	3,693,618
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Cash Paid for Interest	$	207,744		$	1,383
Cash Paid for Taxes	$	8,050		$	6,950

See notes to unaudited condensed consolidated financial statements.

Table of Contents

ROYALE ENERGY, INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2024 AND 2023
(UNAUDITED)

	Common Stock
	Number of Shares Issued and Outstanding		Amount		Additional Paid in Capital			Accumulated Comprehensive Deficit			Total Stockholders' Deficit
	Common Shares		Common Amount		APIC			ACD			Total
December 31, 2022 Balance		61,876,957		61,876		54,447,923			(87,646,402	)		(33,136,603	)
Cashless Warrant Exercise Issuance		3,266,055		3,266		(3,266	)		-			-
Stock Issued in lieu of Compensation		2,541,176		2,542		105,459			-			108,001
Preferred Series B 3.5% Dividend		-		-		-			(629,007	)		(629,007	)
Net Loss		-		-		-			(503,761	)		(503,761	)
September 30, 2023 Balance		67,684,188		67,684		54,550,116			(88,779,170	)		(34,161,370	)

	Common Shares		Common Amount		APIC		ACD			Total
December 31, 2023 Balance		70,564,188		70,564		54,619,236		(90,323,289	)		(35,633,489	)
Stock Issued in lieu of Compensation		1,299,641		1,299		34,700		-			35,999
Preferred Series B 3.5% Dividend		-		-		-		(653,730	)		(653,730	)
Net Loss		-		-		-		(2,065,017	)		(2,065,017	)
September 30, 2024 Balance		71,863,829		71,863		54,653,936		(93,042,036	)		(38,316,237	)

	Common Stock
	Number of Shares Issued and Outstanding		Amount		Additional Paid in Capital		Accumulated Comprehensive Deficit			Total Stockholders' Deficit
	Common Shares		Common Amount		APIC		ACD			Total
June 30, 2023 Balance		67,684,188		67,684		54,550,116		(88,094,633	)		(33,476,833	)
Preferred Series B 3.5% Dividend		-		-		-		(213,807	)		(213,807	)
Net Loss		-		-		-		(470,730	)		(470,730	)
September 30, 2023 Balance		67,684,188		67,684		54,550,116		(88,779,170	)		(34,161,370	)

	Common Shares		Common Amount		APIC		ACD			Total
June 30, 2024 Balance		71,863,829		71,863		54,653,936		(91,636,335	)		(36,910,536	)
Preferred Series B 3.5% Dividend		-		-		-		(221,410	)		(221,410	)
Net Loss		-		-		-		(1,184,291	)		(1,184,291	)
September 30, 2024 Balance		71,863,829		71,863		54,653,936		(93,042,036	)		(38,316,237	)

See notes to unaudited condensed consolidated financial statements.

Table of Contents

ROYALE ENERGY, INC.

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 – BASIS OF PRESENTATION: ACCOUNTING STANDARDS

Consolidation

In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all adjustments necessary to present fairly the Company’s financial position and the results of its operations and cash flows for the periods presented.

The accompanying unaudited consolidated financial statements, which include the accounts of Royale Energy, Inc. (sometimes referred to as the “Company” “we,” “our,” “us,” “Royale Energy,” or “Royale”), Royale Energy Funds, Inc. (“REF”), and Matrix Oil Management Corporation and its subsidiaries, have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) for interim consolidated financial information pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) under Article 10 of Regulation S-X and the instructions to Form 10-Q. Accordingly, certain information and footnote disclosures normally included in our audited financial statements have been condensed or omitted pursuant to the SEC’s rules and regulations. Significant intercompany transactions have been eliminated in the consolidation. In our opinion, all adjustments considered necessary for a fair presentation have been included.

The consolidated balance sheet as of December 31, 2023 was derived from the audited financial statements at that date. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023 as filed with the SEC. Operating results for the nine months ended September 30, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024, or for any other period.

Liquidity and Going Concern

The Company’s primary sources of liquidity have historically been issuances of common stock, oil and gas sales through ongoing operations and the sale of oil and gas properties. There are factors that give rise to substantial doubt about our ability to meet liquidity demands, and we anticipate that our primary sources of liquidity will be from the issuance of debt and/or equity, the sale of oil and natural gas property participation interests through our normal course of business and the sale of non-strategic assets.

At September 30, 2024, our consolidated financial statements reflect a working capital deficiency of $10,990,782, and an accumulated deficit of $93,042,036. We had a net loss of $2,065,017 for the nine months ended September 30, 2024. These factors indicate that there is substantial doubt about our ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.

Management’s plans to alleviate the going concern by implementing cost control measures that include, among other things, the reduction of overhead costs, the sale of non-strategic assets, and, if possible, obtaining additional financing. There is no assurance that additional financing will be available when needed or that we will be able to obtain any financing on terms acceptable to us and whether we will become profitable and generate positive operating cash flow. If we are unable to raise sufficient additional funds, we will have to develop and implement a plan to further extend payables, attempt to extend note repayments, and reduce overhead until sufficient additional capital is raised to support further operations. There can be no assurance that such a plan will be successful.

Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying financial statements to maintain consistency between periods presented. The reclassifications had no impact on previously reported equity.

Use of Estimates

The accompanying financial statements have been prepared in conformity with GAAP and requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the estimate of the Company’s oil and gas reserves prepared by an independent engineering consultant. Such estimates are subject to numerous uncertainties inherent in the estimation of quantities of proven reserves. Estimated reserves are used in the calculation of depletion, depreciation and amortization, unevaluated property costs, impairment of oil and natural gas properties, estimated future net cash flows, taxes, and contingencies.

Table of Contents

Revenue Recognition

A significant portion of our revenues are derived from the sale of crude oil, condensate, natural gas liquids (“NGLs”) and natural gas under spot and term agreements with our customers as follows:

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Oil & Condensate Sales	$	504,915		379,959		1,578,513		1,087,183
Natural Gas Sales		53,896		77,239		167,966		356,083
NGL Sales		898		1,756		2,641		4,432
Total	$	559,709		458,954		1,749,120		1,447,698

The pricing in our hydrocarbon sales agreements are variable, determined using various published benchmarks which are adjusted for negotiated quality and location differentials. As a result, revenue collected under our agreements with customers is highly dependent on the market conditions and may fluctuate considerably as the hydrocarbon market prices rise or fall. Typically, our customers pay us monthly, within a short period of time after we deliver the hydrocarbon products. As such, we do not have any financing element associated with our contracts. We do not have any issues related to returns or refunds, as product specifications are standardized for the industry and are typically measured when transferred to a common carrier or midstream entity, and other contractual mechanisms (e.g., price adjustments) are used when products do not meet those specifications.

In limited cases, we may also collect advance payments from customers as stipulated in our agreements; payments in excess of recognized revenue are recorded as contract liabilities on our consolidated balance sheets.

Under our hydrocarbon sales agreements, the entire consideration amount is variable either due to pricing and/or volumes. We recognize revenues in the amount of variable consideration allocated to distinct units of hydrocarbons transferred to a customer. Such allocation reflects the amount of total consideration we expect to collect for completed deliveries of hydrocarbons, and the terms of variable payment relate specifically to our efforts to satisfy the performance obligations under these contracts. Our performance obligations under our hydrocarbon sales agreements are to deliver either the entire production from the dedicated wells or specified contractual volumes of hydrocarbons.

We often serve as the operator for jointly owned oil and gas properties. As part of this role, we perform activities to explore, develop and produce oil and gas properties in accordance with the applicable joint operating arrangement and collective decisions of the joint parties. Other working interest owners reimburse us for costs incurred based on our agreements. We determined that these activities are not performed as part of customer relationships, and such reimbursements are recorded as cost reimbursements.

We commonly market the share of production belonging to other working interest owners as the operator of jointly owned oil and gas properties. Those marketing activities are carried out as part of the collaborative arrangement, and we do not purchase or otherwise obtain control of other working interest owners’ share of production. Therefore, we act as a principal only with respect to the sale of our share of production and recognize revenue for the volumes associated with our net production.

We frequently sell a portion of the working interest in each well we drill, or participate in, to third-party investors and retain a portion of the prospect for our own account. We typically guarantee a cost to drill to the third-party drilling participants and record a loss or gain on the difference between the guaranteed price and the actual cost to drill the well. When monies are received from third parties for future drilling obligations, we record the liability as Turnkey Drilling Obligations. Once the contracted depth for the drilling of the well is reached and a determination as to the commercial viability of the well (typically call “Casing Point Election” or “Logging Point”), the difference in the actual cost to drill and the guaranteed cost is recorded as income or expense depending on whether there was a gain or loss.

Crude oil and Condensate

For the crude oil and condensate sales agreements, we satisfy our performance obligations and recognize revenue once customers take control of the product at the designated delivery points, which include pipelines, trucks, or vessels.

Table of Contents

Natural gas and NGLs

When selling natural gas and natural gas liquids (“NGLs”), we engage midstream entities to process our production stream by separating natural gas from the NGLs. Frequently, these midstream entities also purchase our natural gas and NGLs under the same agreements. In these situations, we determined the performance obligation is complete and satisfied at the tailgate of the processing plant when the natural gas and NGLs become identifiable and measurable products. We determined the plant tailgate is the point in time where control is transferred to midstream entities and they are entitled to significant risks and rewards of ownership of the natural gas and NGLs.

The amounts due to midstream entities for gathering and processing services are recognized as shipping and handling cost and included as lease operating expense in our consolidated statement of operations, since we make those payments in exchange for distinct services except for natural gas sold to Pacific Gas & Electric where transportation is netted directly against revenue. Under some of our natural gas processing agreements, we have an option to take the processed natural gas and NGLs in-kind and sell to customers other than the processing company. In those circumstances, our performance obligations are complete after delivering the processed hydrocarbons to the customer at the designated delivery points, which may be the tailgate of the processing plant, or an alternative delivery point requested by the customer.

Turnkey Drilling

We sponsor turnkey drilling arrangements in proved and unproved properties. The contracts require that participants pay us the full contract price upon execution of the drilling agreement. Each participant earns an undivided interest in the well bore at the completion of the well. A portion of the funds received in advance of the drilling of a well from a working interest participant are held for the expressed purpose of drilling a well (“Drilling Funds”). If something changes, we may designate the Drilling Funds to drill a substitute well. Under certain conditions, a portion of the Drilling Funds may be required to be returned to a participant. Once the well is drilled, the Drilling Funds are used to satisfy the drilling cost.

We manage these Turnkey Agreements for the participants of the well. We segregate the collections of pre-drilling Authorization for Expenditure (“AFE”) amounts and the gains and losses on the Turnkey Agreements are recorded in income or expense at the time of the casing point election in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 932-323-25 and 932-360. We manage the performance obligation for the well participants and only record revenue or expense at the time the performance obligation of the Turnkey Agreement has been satisfied.

Restricted Cash

Prior to commencement of drilling, we classify Drilling Funds as restricted cash based on guidance codified under ASC 230-10-50-8. In the event that progress payments are made from these funds, they are recorded as Prepaid Expenses and Other Current Assets.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the consolidated balance sheet that sum to the total of the same amounts shown in the statement of cash flows.

	September 30, 2024		December 31, 2023
Cash and Cash Equivalents	$	1,737,465	$	2,202,521
Restricted Cash		4,032,800		3,325,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	5,770,265	$	5,527,521

Equity Method Investments

Investments in entities over which we have significant influence, but not control, are accounted for using the equity method of accounting. Income from equity method investments represents our proportionate share of net income generated by the equity method investees and is reflected in revenue and other income in our condensed consolidated statements of operations. Equity method investments are included as noncurrent assets on the consolidated balance sheet. Currently, the Company has no equity investments.

Equity method investments are assessed for impairment whenever changes in the facts and circumstances indicate a loss in value may have occurred as called for under ASC 323. When a loss is deemed to have occurred and is other than temporary, the carrying value of the equity method investment is written down to fair value, and the amount of the write-down is included in income.

Table of Contents

Other Receivables, net

Other receivables, net, consist of joint interest billing receivables from direct working interest investors and industry partners. We account for expected credit losses on receivables using the Current Expected Credit Loss (CECL) methodology. Under this standard, an allowance for expected credit losses is established and adjusted based on historical loss experience, current conditions, and reasonable and supportable forecasts of future economic conditions. The allowance account is increased or decreased in response to changes in these factors, reflecting our best estimate of credit losses over the remaining life of the receivables.

All amounts considered uncollectible are charged against the allowance account, while recoveries of previously charged-off accounts are added back to the allowance. At September 30, 2024, and December 31, 2023, we maintained an allowance for expected credit losses of $2,023,302 and $1,837,551, respectively, primarily for receivables from direct working interest investors whose expenses on non-producing wells are unlikely to be collected from revenue.

Fair Value Measurements

According to the Fair Value Measurements and Disclosures Topic of the FASB ASC, assets and liabilities that are measured at fair value on a recurring and nonrecurring basis in periods subsequent to initial recognition, the reporting entity shall disclose information that enables users of its financial statements to assess the inputs used to develop those measurements and for recurring fair value measurements using significant unobservable inputs and the effect of the measurements on earnings for the period.

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining fair value, we utilize valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs to the extent possible as well as considering counterparty credit risk in our assessment of fair value. Carrying amounts of our financial instruments, including cash equivalents, accounts receivable, accounts payable and accrued liabilities, approximate their fair values as of the balance sheet dates because of their generally short maturities.

The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Level 2: Directly or indirectly observable inputs as of the reporting date through correlation with market data, including quoted prices for similar assets and liabilities in active markets and quoted prices in markets that are not active. Level 2 also includes assets and liabilities that are valued using models or other pricing methodologies that do not require significant judgment since the input assumptions used in the models, such as interest rates and volatility factors, are corroborated by readily observable data from actively quoted markets for substantially the full term of the financial instrument.

Level 3: Unobservable inputs that are supported by little or no market activity and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

At September 30, 2024 and December 31, 2023, we do not have any financial assets measured and recognized at fair value on a recurring basis. We estimate asset retirement obligations (AROs) pursuant to the provisions of ASC 410, “Asset Retirement and Environmental Obligations”. The estimates of the fair value the ARO's are based on discounted cash flow projections using numerous estimates, assumptions, and judgements regarding such factors as the existence of a legal obligation for an ARO, amounts and timing of settlements, the credit-adjusted risk-free rate to be used and inflation rates.

The initial measurement of AROs at fair value is calculated using discounted cash flow techniques and based on internal estimates of future retirement costs associated with oil and gas properties. Given the unobservable nature of the inputs, including plugging costs and reserve lives, the initial measurement of the asset retirement obligation liability is deemed to use Level 3 inputs.

Other receivables will be reflected as Level 3. The fair value of our other receivables is based on credit factors, oil and gas well reserve profiles and commodity prices both current and forecast specific to these financial instruments.

Table of Contents

Fair Values - Non-recurring

We applied the provisions of the fair value measurement standard to our non-recurring, non-financial measurements including oil and natural gas property impairments and other long-lived asset impairments. These items are not measured at fair value on a recurring basis but are subject to fair value adjustments only in certain circumstances.

Dividends on Series B Convertible Preferred Stock

The Series B Convertible Preferred Stock (“Preferred Stock”) has an obligation to pay a 3.5% cumulative dividend, in kind or cash, on a quarterly basis. The Board of Directors authorized the issuance of additional shares of the Preferred Stock, for the settlement of dividends paid in kind and accumulated through December 31, 2023. We accrued $653,730 and $629,007 for dividends related to the Preferred Stock for the first nine months of 2024 and 2023, respectively. Each quarter, we charge retained earnings for the accumulating dividend as the amounts add to the liquidation preference of the Preferred Stock.

ACCOUNTING STANDARDS

Recently Adopted

None

NOTE 2 – OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES

Oil and gas properties, equipment and fixtures consist of the following:

	September 30,			December 31,
	2024			2023
	(Unaudited)
Oil and Gas
Producing properties, including drilling costs	$	5,757,123		$	5,763,892
Undeveloped properties		3,697,446			778,839
Lease and well equipment		3,295,028			3,295,028
		12,749,597			9,837,759

Accumulated depletion, depreciation & amortization		(7,694,657	)		(7,443,661	)
Net capitalized costs		5,054,940			2,394,098

Commercial and Other
Vehicles		40,061			40,061
Furniture and equipment		1,103,362			1,103,362
		1,143,423			1,143,423
Accumulated depreciation		(1,137,102	)		(1,135,619	)
		6,321			7,804
Net capitalized costs	$	5,061,261		$	2,401,902

Table of Contents

The guidance set forth in the Continued Capitalization of Exploratory Well Costs paragraph of the Extractive Activities Topic of the FASB ASC 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.

Depreciation, depletion, and amortization, based on cost less estimated salvage value of the asset, are primarily determined under either the unit-of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into consideration. Maintenance and repairs are expensed as incurred. Major renewals and improvements are capitalized, and the assets replaced are retired.

The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use. Interest costs, to the extent they are incurred to finance expenditures during the construction phase, are included in property, plant and equipment and are depreciated over the service life of the related assets.

We use the “successful efforts” method to account for our exploration and production activities. Under this method, we accumulate our proportionate share of costs on a well-by-well basis with certain exploratory expenditures and exploratory dry holes being expensed as incurred and capitalize expenditures for productive wells. We amortize the costs of productive wells under the unit-of-production method.

We carry, as an asset, exploratory well costs when the well has found a sufficient quantity of reserves to justify its completion as a producing well and where we are making sufficient progress assessing the reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred.

Acquisition costs of proved oil and gas properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.

Capitalized exploratory drilling and development costs associated with productive depletable extractive properties are amortized using unit-of-production rates based on the amount of proved developed reserves of oil and gas that are estimated to be recoverable from existing facilities using current operating methods. Under the unit-of-production method, oil and gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction points at the outlet valve on the lease or field storage tank.

Production costs are expensed as incurred. Production involves lifting the oil and gas to the surface and gathering, treating, field processing and field storage of the oil and gas. The production function normally terminates at the outlet valve on the lease or field production storage tank. Production costs are those incurred to operate and maintain our wells and related equipment and facilities. They become part of the cost of oil and gas produced. These costs, sometimes referred to as lifting costs, include such items as labor costs to operate the wells and related equipment; repair and maintenance costs on the wells and equipment; materials, supplies and energy costs required to operate the wells and related equipment; and administrative expenses related to the production activity. Proved oil and gas properties held and used, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

We estimate the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts and whether carrying amounts should be impaired. We perform the evaluation of carrying amounts at least annually or when economic events or commodity prices indicate that a substantial and measurable change in future cash flows has occurred. Cash flows used in impairment evaluations are developed using updated evaluation assumptions for crude oil and natural gas commodity prices. Annual volumes are based on field production profiles, which are also updated annually.

Impairment analyses are generally based on proved reserves. An asset group would be further assessed if the undiscounted cash flows were less than its carrying value. Impairments are measured by the amount the carrying value exceeds fair value. During the nine months ended September 30, 2024, we incurred an impairment loss of $400,554. No impairment losses were incurred during the nine months ended September 30, 2023.

Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are recorded based on the estimated economic chance of success and the length of time that Royale Energy expects to hold the properties. The valuation allowances are reviewed at least annually.

Table of Contents

Upon the sale or retirement of a complete field of a proven property, we eliminate the cost, and the resulting gain or loss is recorded to the Consolidated Statement of Operations. Upon the sale of an entire interest in an unproved property where the property has been assessed for impairment individually, a gain or loss is recognized in the Consolidated Statement of Operations. If a partial interest in an unproved property is sold, any funds received are accounted for as a recovery of the cost in the interest retained with any excess funds recognized as a gain. Should our turnkey drilling agreements include unproved property, total drilling costs incurred to satisfy our obligations are recovered by the total funds received under the agreements. Any excess funds are recorded as a Gain on Turnkey Drilling Programs, and any costs not recovered are capitalized and accounted for under the “successful efforts” method.

We sponsor turnkey drilling agreement arrangements in unproved properties as a pooling of assets in a joint undertaking, whereby proceeds from participants are reported as Deferred Drilling Obligations, and then reduced as costs to complete our obligations are incurred with any excess booked against our property account to reduce any basis in our own interest. Gains on Turnkey Drilling Programs represent funds received from turnkey drilling participants in excess of all costs we incur during the drilling programs (e.g., lease acquisition, exploration and development costs), including costs incurred on behalf of participants and costs incurred for our own account; and are recognized only upon making this determination after our obligations have been fulfilled.

The contracts require the participants to pay the full contract price upon execution of the agreement. We complete the drilling activities typically between 10 and 30 days after drilling begins. The participant retains an undivided or proportional beneficial interest in the property and is also responsible for their proportionate share of operating costs. We retain legal title to the lease. The participants purchase a working interest directly in the well bore.

In these working interest arrangements, the participants are responsible for sharing in the risk of development, but also sharing in a proportional interest in rights to revenues and proportional liability for the cost of operations after drilling is completed and the interest is conveyed to the participant.

A certain portion of the turnkey drilling participant’s funds received are non-refundable. We record all funds invested as Deferred Drilling Obligations until drilling is complete. Occasionally, drilling is delayed for various reasons such as weather, permitting, drilling rig availability and/or contractual obligations. At September 30, 2024, and December 31, 2023, we had Deferred Drilling Obligations of $11,328,332 and $9,761,927, respectively.

If we are unable to drill the wells, and a suitable replacement well is not found, we would retain the non-refundable portion of the contract and return the remaining funds to the participant. Included in Restricted Cash are amounts for use in completion of turnkey drilling in progress.

Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.

NOTE 3 – SERIES B PREFERRED STOCK

The Preferred Stock is convertible at the option of the security holder at the rate of ten shares of common stock for one share of Preferred Stock. The Preferred Stock has never been registered under the Securities Exchange Act of 1934, as amended, (“Exchange Act”), and no market exists for the Preferred Stock. Additionally, the Preferred Stock will automatically convert into shares of common stock at any time in which the Volume Weighted Average Price (“VWAP”) of our common stock exceeds $3.50 per share for 20 consecutive trading days, the shares of our common stock are registered under the Exchange Act, and the trading volume of shares of our common stock exceed 200,000 shares per day. Beginning in 2020, the holders of the Preferred Stock became entitled to vote the number of shares of our common stock into which the shares of Preferred Stock would be entitled to convert.

In accordance with ASC 480-10-S99-1.02, we have determined that the conversion or redemption of the Preferred Stock are outside the sole control of the Company and that they should be classified in mezzanine or temporary equity as redeemable noncontrolling interest beginning at the reporting period ended June 30, 2020.

For 2023, the board authorized the payment of each quarterly dividend on shares of Preferred Stock as additional shares of Preferred Stock to be Paid-In-Kind and to be paid immediately following the end of the quarter. During 2024 and 2023 no cash was used to pay dividends on shares of the Preferred Stock.

On October 11, 2024, we entered into an agreement with all of our preferred shareholders, to exchange their shares of Preferred Stock, thereby eliminating the class of stock. For further information see Note 9 – Subsequent Events.

Table of Contents

NOTE 4 – INCOME (LOSS) PER SHARE

Basic and diluted loss per share are calculated as follows:

	Three Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(1,184,291	)	$	(1,184,291	)	$	(470,730	)	$	(470,730	)
Less: Preferred Stock Dividend		221,410			221,410			213,807			213,807
Net Income (Loss) Attributable to Common Shareholders		(1,405,701	)		(1,405,701	)		(684,537	)		(684,537	)
Weighted average common shares outstanding		71,863,529			71,863,529			67,684,188			67,684,188
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,863,529			71,863,529			67,684,188			67,684,188
Per share:
Net (Loss)	$	(0.02	)	$	(0.02	)	$	(0.01	)	$	(0.01	)

	Nine Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(2,065,017	)	$	(2,065,017	)	$	(503,761	)	$	(503,761	)
Less: Preferred Stock Dividend		653,730			653,730			629,007			629,007
Net Income (Loss) Attributable to Common Shareholders		(2,718,747	)		(2,718,747	)		(1,132,768	)		(1,132,768	)
Weighted average common shares outstanding		71,693,073			71,693,073			64,982,535			64,982,535
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,693,073			71,693,073			64,982,535			64,982,535
Per share:
Net (Loss)	$	(0.04	)	$	(0.04	)	$	(0.02	)	$	(0.02	)

For the nine and three months ended September 30, 2024 and 2023, we had dilutive securities of 24,664,550 and 24,235,050, respectively. During the nine and three month periods in 2024 and 2023, these securities were not included in the dilutive loss per share, due to their antidilutive nature.

NOTE 5 – INCOME TAXES

Deferred tax assets and liabilities reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and amounts used for income tax purposes. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more-likely-than-not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Prior to 2022, management reviewed the reliability of our net deferred tax assets, and due to our continued cumulative losses in recent years, we concluded it is not “more-likely-than-not” our deferred tax assets will be realized. As a result, we will continue to record a full valuation allowance against the deferred tax assets in 2024.

	For the nine months ended
	September 30, 2024			September 30, 2023

Tax benefit computed at statutory rate of 21% at September 30, 2024 and 2023, respectively	$	(433,654	)		(104,425	)

Increase (decrease) in taxes resulting from:
Other non-deductible expenses		682			969
Change in valuation allowance		432,972			103,456
Provision (benefit)	$	-		$	-

Table of Contents

NOTE 6 – ISSUANCE OF COMMON STOCK

In April 2023, CIC RMX LP (“CIC”) exercised in full its warrant to purchase shares of our common stock. CIC elected to make a cashless exercise of the warrant and as a result we issued 3,266,055 shares of our common stock to CIC. During the nine months ended September 30, 2024, in lieu of cash payments for board fees, we issued 1,299,641 shares of common stock valued at approximately $36,000 to board members. During the nine months ended September 30, 2023, in lieu of cash payments for board fees, we issued 2,541,176 shares of common stock valued at approximately $108,001 to board members.

NOTE 7 – ALLOWANCE FOR CREDIT LOSSES

We measure our allowance for losses on other receivables including, under ASC 326. The following table summarizes the activity in the balance of allowance for credit losses on other receivables for the period indicated:

Balance at December 31, 2022	$	2,757,549
Provision for credit loss		0
Write-offs charged against the allowance		10,624
Balance at September 30, 2023	$	2,746,925

Balance at December 31, 2023	$	1,837,551
Provision for credit loss		279,491
Write-offs charged against the allowance		93,740
Balance at September 30, 2024	$	2,023,302

NOTE 8 – NOTE PAYABLE TO RELATED PARTIES

On February 7, 2024, the Company’s board of directors approved a debt facility of up to $3 million. On February 9, 2024, Royale Energy, Inc. entered into a Secured Term Loan Note with Walou Investments, LP, a Texas limited partnership, which is under the direct and indirect control of Johnny Jordan, the Company’s Chief Executive Officer and a member of the Company’s board of directors. In addition, Mr. Jordan is the beneficial owner of approximately 14.8% of the Company’s issued and outstanding common stock, as of September 30, 2024. The initial loan to the Company was $1,400,000 which was received on February 9, 2024. The outstanding principal balance of the loan has an interest rate of 18.0%. The Company began making monthly interest payments on March 1, 2024, and will continue until the original maturity date, August 1, 2025, when the unpaid principal balance would become due. The loan is secured by a deed of trust, which was recorded in Ector County, Texas and covers, among other things, certain oil and gas assets in Ector County, Texas. As of September 30, 2024, there was $1.4 million outstanding under the loan with Walou Investments, LP.

Effective September 30, 2024, the note was amended to extend the maturity date from August 1, 2025, to January 1, 2026, with no other terms amended. The loan is secured by a deed of trust recorded in Ector County, Texas, covering, among other things, certain oil and gas assets in Ector County, Texas. As of September 30, 2024, there was $1.4 million outstanding under the loan with Walou Investments, LP.

NOTE 9 – SUBSEQUENT EVENTS

Series B Preferred Stock Exchange and Redemption

On October 11, 2024, we entered into privately negotiated Exchange Agreements with holders of our Preferred Stock. Under these agreements, effective as of June 30, 2024, all 2,466,455 outstanding shares of Series B Preferred Stock, valued at $10 per share, with a total value of $24,664,550, were exchanged for a combination of 22,198,095 shares of common stock, senior notes totaling $2,466,455, and options to purchase 25,000,000 shares of common stock at an exercise price of $0.10 per share. Additionally, 50% of the overriding royalty interests in certain Alaska oil and gas properties and ownership in real property located in Kern County California, were transferred to a holding company owned by the preferred stockholders. As a result of these transactions, we no longer have any outstanding shares of Preferred Stock.

Release of Historical Liabilities

In conjunction with the exchange of the Preferred Stock, we also entered into Release Agreements with certain creditors to discharge approximately $2,820,423 of historical liabilities. These liabilities were settled through the issuance of 2,538,378 shares of common stock and additional senior notes totaling $282,042.

These transactions resulted in the complete redemption of the Preferred Stock, with 2,466,455 shares exchanged, and the satisfaction of related historical payment obligations, which we expect will have a material impact on the Company's capital structure and financial obligations.

Table of Contents

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

FORWARD-LOOKING STATEMENTS

In addition to historical information contained herein, certain information contained in this Quarterly Report on Form 10-Q, as well as other written and oral statements made or incorporated by reference from time to time by the Company and its representatives in other reports, filings with the SEC, press releases, conferences or otherwise, may be deemed to be “forward-looking statements” within the meaning of Section 21E of the Exchange Act. This information includes, without limitation, statements concerning the Company’s future financial position and results of operations, planned capital expenditures, sources and availability of financing, business strategy and other plans for future operations, the future mix of revenues and business, customer retention, project reversals, commitments and contingent liabilities, future demand, and industry conditions. While we believe our forward-looking statements are based upon reasonable assumptions, we can give no assurance that such expectations will prove to have been correct. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Generally, the words “anticipate,” “believe,” “estimate,” “expect,” “may” and similar expressions, identify forward-looking statements, which generally are not historical in nature. Actual results could differ materially from the results described in the forward-looking statements due to the risks and uncertainties set forth under “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” elsewhere in this Quarterly Report on Form 10-Q, in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and those described from time to time in our future reports filed with the SEC.

The following discussion is qualified in its entirety by, and should be read in conjunction with, the Company’s financial statements, including the notes thereto, included in this Quarterly Report on Form 10-Q and the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.

OVERVIEW

Royale is an independent oil and natural gas producer. Royale’s principal lines of business are the production and sale of oil and natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale. Since 1993, Royale has primarily acquired and developed producing and non-producing natural gas properties in California. In December 2018, Royale became the operator of a newly acquired oil and gas property in Texas. The most significant factors affecting our results of operations are (i) changes in oil and natural gas prices, production levels and reserves, (ii) turnkey drilling activities, and (iii) the increase in future cost associated with abandonment of wells.

RESULTS OF OPERATIONS

For the nine months ended September 30, 2024, and 2023, we had a net loss of $2,065,017 and $503,761, respectively. The difference was due to gains on turnkey drilling recognized during the nine months ended September 30, 2024 and 2023, of $527,715 and $1,338,305, respectively. In addition, during the nine month period in 2024, we had higher lease impairments, bad debt expenses and interest expenses, more fully discussed below. During the three months ended September 30, 2024 and 2023, we had net losses of $1,184,291 and $470,730, respectively. The difference was also due to higher lease impairments, bad debt expenses and interest expenses recorded during the three month period in 2024 when compared to the period in 2023.

During the first nine months of 2024, revenues from oil and gas production increased $301,422 or 20.8%, to $1,749,120 in 2024 from revenues of $1,447,698 during the first nine months of 2023. This increase was mainly due to higher oil production volumes during the period in 2024. The net sales volume of oil and condensate for the nine months ended September 30, 2024, was approximately 21,079 barrels with an average price of $74.88 per barrel, versus 14,851 barrels with an average price of $73.20 per barrel for the nine months of 2023. This represents an increase in net sales volume of 6,228 barrels or 41.9%, which was due to wells completed and put online during the latter half of 2023 and first half of 2024. The net sales volume of natural gas for the nine months ended September 30, 2024, was approximately 91,255 Mcf with an average price of $1.84 per Mcf, versus 101,324 Mcf with an average price of $3.51 per Mcf for the same period in 2023. This represents a decrease in net sales volume of 10,069 Mcf or 9.9%. The decrease in natural gas production volume was also due to the natural declines of our wells. For the quarter ended September 30, 2024, revenues from oil and gas production increased $100,755 or 22.0% to $559,709 from the 2023 third quarter revenues of $458,954. This increase was also due to higher oil production volumes. The net sales volume of oil and condensate for the quarter ended September 30, 2024, was approximately 6,800 barrels with an average price of $74.25 per barrel, versus 4,987 barrels with an average price of $76.19 per barrel for the third quarter of 2023. This represents an increase in net sales volume of 1,813 barrels or 36.4% for the quarter in 2024. The net sales volume of natural gas for the quarter ended September 30, 2024, was approximately 30,182 Mcf with an average price of $1.79 per Mcf, versus 33,242 Mcf with an average price of $2.32 per Mcf for the third quarter of 2023. This represents a decrease in net sales volume of 3,060 Mcf or 9.2% for the quarter in 2023.

Table of Contents

Oil and natural gas lease operating expenses decreased by $38,640 or 2.9%, to $1,292,525 for the nine months ended September 30, 2024, from $1,331,165 for the same period in 2023. This decrease was due to lower water disposal hauling costs paid to outside vendors, which decreased our trucking costs as we converted an existing non-producing oil well into a water injection well to reduce water disposal hauling costs in 2023. For the third quarter in 2024, lease operating expenses increased $196,037 or 62.0% from the same quarter in 2023, primarily due to repairs and restoration of well equipment in our Jameson field due to weather related damage.

The aggregate of supervisory fees and other income was $44,963 for the nine months ended September 30, 2024, an increase of $12,209 from $32,754 during the same period in 2023. During the third quarter 2024, supervisory fees and other income increased $6,624 when compared to the quarter in 2023. These increases were mainly due to higher interest income on our bank balances.

Depreciation, depletion and amortization expense increased to $253,726 from $231,224, an increase of $22,502 or 9.7% for the nine months ended September 30, 2024, as compared to the same period in 2023. During the third quarter 2024, depreciation, depletion and amortization expenses decreased $770 or 1.3%. The depletion rate is calculated using production as a percentage of reserves. The increase in depletion expense was due to a decrease in expected recoverable reserves which increased the depletion rate.

At September 30, 2024, Royale Energy had a Deferred Drilling Obligation of $11,328,332. During the first nine months of 2024, we removed $3,371,095 of drilling obligations as we participated in the drilling and completion of two oil wells in the Texas Permian basin, while incurring expenses of $2,843,380, resulting in a gain of $527,715. At September 30, 2023, Royale Energy had a Deferred Drilling Obligation of $9,761,927. At September 30, 2023, Royale Energy had a Deferred Drilling Obligation of $10,140,855. During the first nine months of 2023, we removed $2,561,610 of drilling obligations as we completed one oil well in our Texas Jameson field and participated in the drilling and completion of an oil well in the Texas Permian basin, while incurring expenses of $1,223,305, resulting in a gain of $1,338,305.

General and administrative expenses decreased by $64,865 or 5.1% from $1,262,542 for the nine months ended September 30, 2023 to $1,197,677 for the same period in 2024. For the second quarter 2024, general and administrative expenses decreased $14,727 or 3.8% when compared to the same period in 2023. These decreases were mainly due to lower employee and board related expenses due to cost reduction measures during the periods in 2024. For the first nine months of 2024, marketing expenses increased $39,702 or 17.2% to $269,984, compared to $230,282 for the first nine months of 2023. For the third quarter 2024, marketing expenses increased $44,820 or 53.8% when compared to the third quarter in 2023. Marketing expense varies from period to period according to the number of marketing events attended by personnel and their associated costs.

Legal and accounting expense increased to $485,114 for the nine-month period in 2024, compared to $368,810 for the same period in 2023, a $116,304 or 31.5%. This increase during the period in 2024 was primarily due to higher legal fees related to our debt facility entered into during the first quarter of 2024, and preparation of the transaction documents related to the conversion of the Series B Convertible Preferred shares described in Note 9. For the third quarter 2024, legal and accounting expenses increased $47,283 or 49.4%, when compared to the third quarter in 2023, primarily due to fees related to conversion document preparation.

During the nine months ended September 30, 2024, we recorded Bad Debts expense of $279,491 which arose from identified uncollectable receivables relating to our oil and natural gas properties either plugged and abandoned or scheduled for plugging and abandonment (“P&A”) and our period end oil and natural gas reserve values. We periodically review our accounts receivable from working interest owners to determine whether collection of any of these charges appears doubtful. During the period in 2024, we also recorded lease impairments of $400,554 on various lease and land costs in our California fields where the carrying value exceeded the fair value, no lease impairments were recorded in the first nine months of 2023. During the nine months ended September 30, 2023, we recorded a gain on other of $54,975 as we reconciled employee related items previously recorded as liabilities. We also recorded a gain on other of approximately $57,000 on our share of property tax refunds for prior years received by RMX Resources, LLC during the period in 2023. During the period in 2023, we recorded a write down of $9,840 on certain well equipment that was either written down to its current market value or written off as it was no longer usable.

Interest expense for the nine months ended September 30, 2024, and 2023, were $207,744 and $1,383, respectively. The higher 2024 interest expense was due to the $1.4 million note payable obtained in February 2024, discussed in Note 8.

Table of Contents

CAPITAL RESOURCES AND LIQUIDITY

At September 30, 2024, we had current assets totaling $8,971,747 and current liabilities totaling $19,962,529, a $10,990,782 working capital deficit. We had $1,737,465 in cash and $4,032,800 in restricted cash at September 30, 2024, compared to $2,202,521 in cash and $3,325,000 in restricted cash at December 31, 2023.

At September 30, 2024, our other receivables, which consist of joint interest billing receivables from direct working interest investors and industry partners, totaled $622,921 compared to $1,036,401 at December 31, 2023, a $413,480 or 39.9% decrease. This decrease was mainly due to lower accounts receivables from payment of Joint Interest Bills by direct working interest owners for lease operating expenses from our Texas Jameson wells. At September 30, 2024, revenue receivable was $513,418 a decrease of $364,960, compared to $878,378 at December 31, 2023, due to lower production volumes during the third quarter in 2024 when compared to the year-end 2023. At September 30, 2024, our accounts payable and accrued expenses totaled $6,240,895 an increase of $758,821 from the accounts payable at December 31, 2023 of $5,482,074, which was mainly due to higher trade payables primarily related to drilling costs during the period in 2024.

We have had recurring operating and net losses and cash used in operations and the financial statements reflect a working capital deficiency of $10,990,782 and an accumulated deficit of $93,042,036. These factors raise substantial doubt about our ability to continue as a going concern. We anticipate that our primary sources of liquidity will be from the sale of oil and gas in the course of normal operations, the sale of oil and gas property, sales of participation interest and possible issuance of debt and/or equity. If we are unable to generate sufficient cash from operations or financing sources, it may become necessary to curtail, suspend or cease operations, sell property, or enter into financing transaction(s) on less favorable terms; any such outcomes could have a material adverse effect on our business, results of operations, financial position, and liquidity. Management plans to continue to increase revenues by making commitments to participate with industry partners in drilling wells in the Permian basin and will also continue to drill and workover wells in our Texas Jameson field. Although there are no assurances, Management believes that expected increases in revenue together with reduced capital expenditures for drilling will allow the company to meet its liquidity needs through the remainder of the year.

Operating Activities. Net cash used in operating activities totaled $1,381,384 and $198,937 for the nine months ended September 30, 2024 and 2023, respectively. This difference in cash was mainly due to an increase in accounts payable and expenses during the period in 2024 mainly due to drilling and lease costs when compared to the period in 2023.

Investing Activities. Net cash provided by investing activities totaled $231,089 and $1,337 for the nine months ended September 30, 2024 and 2023, respectively. During the nine-month period in 2024, we received approximately $4.9 million in drilling funds while our drilling and lease expenditures were approximately $4.7 million as we participated in the drilling and completion of two oil wells in the Texas Permian basin and obtained lease interests in the Permian basin. During the nine-month period in 2023, we received approximately $4.6 million in drilling funds while our drilling expenditures were approximately $4.6 million as we drilled and completed one Texas oil well and participated in the drilling and completion of a Texas Permian basin oil well.

Financing Activities. Net cash provided by financing activities totaled $1,393,039 for the nine months ended September 30, 2024. Net cash used in financing activities totaled $8,916 for the nine months ended September 30, 2023. The difference in cash was due to receipt of $1.4 million from the note payable discussed in Note 8. During the nine-month periods in 2024 and 2023, $6,961 and $8,916, respectively, were used for principal payments on our financing lease payments.

Critical Accounting Estimates

Our critical accounting policies are further disclosed in Note 1 to the consolidated financial statements included in our 2023 Annual Report on Form 10-K.

Table of Contents

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES

Disclosure controls and procedures are controls and other procedures of a registrant designed to ensure that information required to be disclosed by the registrant in the reports that it files or submits under the Exchange Act is properly recorded, processed, summarized and reported, within the time periods specified in the SEC rules and forms. Disclosure controls and procedures include processes to accumulate and evaluate relevant information and communicate such information to a registrant’s management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure.

As of December 31, 2023, our management, including our Chief Executive and Chief Financial Officers evaluated the effectiveness of the design and operation of our disclosure controls and procedures, as required by Rule 13a-15 of the Exchange Act. Based on the evaluation described above, the company concluded that there was a material weakness in our disclosure controls and procedures. These controls and procedures are based on the definition of disclosure controls and procedures in Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Securities Exchange Act of 1934. A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis.

As a result of the review by the CFO and CEO, the material weakness was identified as listed below.

●

In connection with the audit of our 2023 consolidated financial statements, management has identified a material weakness that exists because we did not maintain effective controls over our financial close and reporting process, and has concluded that the financial close and reporting process needs additional formal procedures to ensure that appropriate reviews occur on all financial reporting analysis. Management has designed and implemented updated control procedures that we believe will mitigate this material weakness and is monitoring these procedures for effectiveness.

Because of the material weaknesses described above, our management was unable to conclude that our internal control over financial reporting was effective as of the end of period to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external reporting purposes in accordance with generally accepted accounting principles.

Notwithstanding the material weaknesses described above, our management, including our Chief Executive Officer and Chief Financial Officer, believes that the consolidated financial statements contained in this Report on Form 10-Q fairly present, in all material respects, our financial condition, results of operations and cash flows for the fiscal periods presented in conformity with U.S. generally accepted accounting principles. In addition, the material weakness described did not result in the restatements of any of our audited or unaudited consolidated financial statements or disclosures for any previously reported periods.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

Except for the actions described above, that were taken to address the material weaknesses, there were no changes in our internal controls during the period ended September 30, 2024, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Table of Contents

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, the Company may be involved in various legal proceedings or may be subject to claims that arise in the ordinary course of business. The outcome of any such claims or proceedings cannot be predicted with certainty. As of the date of this filing, management is not aware of any such claims against the Company.

Item 1A. Risk Factors

Not applicable to smaller reporting companies.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the period covered by this report, we have not issued any unregistered shares.

Item 3. Defaults Upon Senior Securities

None

Item 4. Mine Safety Disclosures

Not applicable

Item 5. Other Information

None

Item 6. Exhibits

10.1	Amendment to Secured Term Loan Note effective as of September 30, 2024, by and between Royale Energy, Inc. and Walou Investments, LP.
31.1	Rule 13a-14(a)/15d-14(a) Certification
31.2	Rule 13a-14(a)/15d-14(a) Certification
32.1	18 U.S.C. § 1350 Certification
32.2	18 U.S.C. § 1350 Certification
101.INS	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase
101.DEF	Inline XBRL Taxonomy Extension Definition Linkbase
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase
104	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

Table of Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ROYALE ENERGY, INC.

Date: November 14, 2024	/s/ Johnny Jordan
	Johnny Jordan, Chief Executive Officer

Date: November 14, 2024	/s/ Ronald Lipnick
	Ronald Lipnick, Chief Financial Officer

false --12-31 Q3 0001694617 0001694617 2024-01-01 2024-09-30 0001694617 2024-11-01 0001694617 2024-09-30 0001694617 2023-12-31 0001694617 us-gaap:RelatedPartyMember 2024-09-30 0001694617 us-gaap:RelatedPartyMember 2023-12-31 0001694617 2023-01-01 2023-12-31 0001694617 us-gaap:OilAndGasMember 2024-07-01 2024-09-30 0001694617 us-gaap:OilAndGasMember 2023-07-01 2023-09-30 0001694617 us-gaap:OilAndGasMember 2024-01-01 2024-09-30 0001694617 us-gaap:OilAndGasMember 2023-01-01 2023-09-30 0001694617 us-gaap:ManagementServiceMember 2024-07-01 2024-09-30 0001694617 us-gaap:ManagementServiceMember 2023-07-01 2023-09-30 0001694617 us-gaap:ManagementServiceMember 2024-01-01 2024-09-30 0001694617 us-gaap:ManagementServiceMember 2023-01-01 2023-09-30 0001694617 2024-07-01 2024-09-30 0001694617 2023-07-01 2023-09-30 0001694617 2023-01-01 2023-09-30 0001694617 2022-12-31 0001694617 2023-09-30 0001694617 us-gaap:CommonStockMember 2022-12-31 0001694617 us-gaap:AdditionalPaidInCapitalMember 2022-12-31 0001694617 us-gaap:RetainedEarningsMember 2022-12-31 0001694617 us-gaap:CommonStockMember 2023-01-01 2023-09-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2023-01-01 2023-09-30 0001694617 us-gaap:RetainedEarningsMember 2023-01-01 2023-09-30 0001694617 us-gaap:CommonStockMember 2023-09-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2023-09-30 0001694617 us-gaap:RetainedEarningsMember 2023-09-30 0001694617 us-gaap:CommonStockMember 2023-12-31 0001694617 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001694617 us-gaap:RetainedEarningsMember 2023-12-31 0001694617 us-gaap:CommonStockMember 2024-01-01 2024-09-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-09-30 0001694617 us-gaap:RetainedEarningsMember 2024-01-01 2024-09-30 0001694617 us-gaap:CommonStockMember 2024-09-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2024-09-30 0001694617 us-gaap:RetainedEarningsMember 2024-09-30 0001694617 us-gaap:CommonStockMember 2023-06-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2023-06-30 0001694617 us-gaap:RetainedEarningsMember 2023-06-30 0001694617 2023-06-30 0001694617 us-gaap:RetainedEarningsMember 2023-07-01 2023-09-30 0001694617 us-gaap:CommonStockMember 2023-07-01 2023-09-30 0001694617 us-gaap:CommonStockMember 2024-06-30 0001694617 us-gaap:AdditionalPaidInCapitalMember 2024-06-30 0001694617 us-gaap:RetainedEarningsMember 2024-06-30 0001694617 2024-06-30 0001694617 us-gaap:RetainedEarningsMember 2024-07-01 2024-09-30 0001694617 us-gaap:CommonStockMember 2024-07-01 2024-09-30 0001694617 srt:OilReservesMember 2024-07-01 2024-09-30 0001694617 srt:OilReservesMember 2023-07-01 2023-09-30 0001694617 srt:OilReservesMember 2024-01-01 2024-09-30 0001694617 srt:OilReservesMember 2023-01-01 2023-09-30 0001694617 srt:NaturalGasReservesMember 2024-07-01 2024-09-30 0001694617 srt:NaturalGasReservesMember 2023-07-01 2023-09-30 0001694617 srt:NaturalGasReservesMember 2024-01-01 2024-09-30 0001694617 srt:NaturalGasReservesMember 2023-01-01 2023-09-30 0001694617 srt:NaturalGasLiquidsReservesMember 2024-07-01 2024-09-30 0001694617 srt:NaturalGasLiquidsReservesMember 2023-07-01 2023-09-30 0001694617 srt:NaturalGasLiquidsReservesMember 2024-01-01 2024-09-30 0001694617 srt:NaturalGasLiquidsReservesMember 2023-01-01 2023-09-30 0001694617 us-gaap:VehiclesMember 2024-09-30 0001694617 us-gaap:VehiclesMember 2023-12-31 0001694617 us-gaap:FurnitureAndFixturesMember 2024-09-30 0001694617 us-gaap:FurnitureAndFixturesMember 2023-12-31 0001694617 us-gaap:SeriesBPreferredStockMember 2024-01-01 2024-09-30 0001694617 2023-04-01 2023-04-30 0001694617 srt:BoardOfDirectorsChairmanMember 2024-01-01 2024-09-30 0001694617 2024-02-07 0001694617 srt:ChiefExecutiveOfficerMember 2024-02-09 0001694617 us-gaap:SeriesBPreferredStockMember us-gaap:SubsequentEventMember 2024-10-11 2024-10-11 0001694617 us-gaap:SeriesBPreferredStockMember us-gaap:SubsequentEventMember 2024-10-11 0001694617 us-gaap:CommonStockMember us-gaap:SubsequentEventMember 2024-10-11 2024-10-11 0001694617 us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2024-10-11 0001694617 us-gaap:SubsequentEventMember 2024-10-11 2024-10-11 0001694617 us-gaap:OtherLiabilitiesMember us-gaap:SeniorNotesMember us-gaap:SubsequentEventMember 2024-10-11 xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure

Exhibit 10.1

Amendment to Secured Term Loan Note

This Amendment to Secured Term Loan Note (the “Amendment”) is made as of November 1, 2024 by and between Royale Energy, Inc., a Delaware corporation (the "Borrower"), and Walou Investments, LP, a Texas limited partnership, in its capacity as administrative agent for Lenders (“Agent”).

Background

Whereas, the Borrower issued a Secured Term Loan Note dated February 9, 2024 (the “Note”), with an original Maturity Date of August 1, 2025; and

Whereas, the parties now desire to extend the Maturity Date of the Note to January 1, 2026.

Amendment

The Note is hereby amended as follows:

Modification of Maturity Date: Section 1(c) of the Note is amended and restated in its entirety to read as follows:

“(c) The entire unpaid principal balance of the loan(s) represented by this Note, plus all accrued and unpaid interest thereof and any fees or penalties with respect thereto, shall be due and payable on January 1, 2026 (the “Maturity Date”).

Commencing on March 1, 2024, and on a monthly basis on the 1st day of each month thereafter, until the Maturity Date, Borrower shall make interest payments in the amount calculated in accordance with Section 2 hereof, on the outstanding

principal balance hereunder.”

No Other Changes: Except as specifically set forth herein, all other terms and conditions of the Note shall remain in full force and effect.

Effective Date of Amendment: This Amendment shall be effective as of September 30, 2024, upon execution by the Borrower and Agent.

AGENT:

WALOU INVESTMENTS, LP, AS Agent

By: Walou Corp., its general partner

By: /s/Johnny Jordan

Johnny Jordan (Nov 5, 2024 08:28 PST)

Johnny Jordan

President

LENDER:

WALOU INVESTMENTS, LP, AS Agent

By: Walou Corp., its general partner

By: /s/Johnny Jordan

Johnny Jordan (Nov 5, 2024 08:28 PST)

Johnny Jordan

President

Agreed and Accepted:

BORROWER:

ROYALE ENERGY, INC.

By: /s/ Ronald Lipnick

Ronald Lipnick

Chief Financial Officer

Exhibit 31.1

I, Johnny Jordan, certify that:

1. I have reviewed this report on Form 10-Q of Royale Energy, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2024	/s/ Johnny Jordan
	Johnny Jordan, Chief Executive Officer

Exhibit 31.2

I, Ronald Lipnick, certify that:

1. I have reviewed this report on Form 10-Q of Royale Energy, Inc.;

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 14, 2024	/s/ Ronald Lipnick
	Ronald Lipnick, Chief Financial Officer

Exhibit 32.1

Certification Pursuant to 18 U.S.C. § 1350

The undersigned, Johnny Jordan, Chief Executive Officer of Royale Energy, Inc., a Delaware corporation (the “Company”), pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, hereby certifies that, to his knowledge:

(1) the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2024 (the “Report”) fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2024	By:	/s/ Johnny Jordan
		Johnny Jordan, Chief Executive Officer

Exhibit 32.2

Certification Pursuant to 18 U.S.C. § 1350

The undersigned, Ronald Lipnick, Chief Financial Officer of Royale Energy, Inc., a Delaware corporation (the “Company”), pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes Oxley Act of 2002, hereby certifies that, to his knowledge:

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 14, 2024	By:	/s/ Ronald Lipnick
		Ronald Lipnick, Chief Financial Officer

Cover - shares	9 Months Ended
Cover - shares	Sep. 30, 2024	Nov. 01, 2024
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Amendment Flag	false
Document Period End Date	Sep. 30, 2024
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Entity Information [Line Items]
Entity Registrant Name	ROYALE ENERGY, INC.
Entity Central Index Key	0001694617
Entity File Number	000-55912
Entity Tax Identification Number	81-4596368
Entity Incorporation, State or Country Code	DE
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Contact Personnel [Line Items]
Entity Address, Address Line One	1530 Hilton Head Rd, Suite 205
Entity Address, City or Town	El Cajon
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92021
Entity Phone Fax Numbers [Line Items]
City Area Code	619
Local Phone Number	383-6600
Entity Listings [Line Items]
Title of 12(b) Security	None
Entity Common Stock, Shares Outstanding		96,600,302

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Current Assets
Cash and Cash Equivalents	$ 1,737,465	$ 2,202,521
Restricted Cash	4,032,800	3,325,000
Other Receivables, net	622,921	1,036,401
Revenue Receivables	513,418	878,378
Prepaid Expenses	557,396	558,169
Deferred Drilling Costs	1,507,747	1,669,149
Total Current Assets	8,971,747	9,669,618
Right of Use Assets - Leases	261,129	254,008
Other Assets	589,865	589,865
Oil and Gas Properties, (Successful Efforts Basis), Equipment and Fixtures, net	5,061,261	2,401,902
Total Assets	14,884,002	12,915,393
Current Liabilities:
Accounts Payable and Accrued Expenses	6,240,895	5,482,074
Royalties Payable	611,833	612,925
Due to RMX Resources, LLC	23,087	23,087
Accrued Liabilities	653,730	215,693
Asset Retirement Obligation - Current	1,012,500	675,000
Deferred Drilling Obligation	11,328,332	9,761,927
Operating Leases - Current	92,152	83,230
Total Current Liabilities	19,962,529	16,853,936
Noncurrent Liabilities:
Accrued Liabilities - Long Term	1,306,605	1,306,605
Accrued Unpaid Guaranteed Payments	1,616,205	1,616,205
Operating Leases - Long-Term	169,292	171,439
Asset Retirement Obligation	4,081,065	4,151,847
Total Liabilities	28,535,696	24,100,032
Mezzanine Equity:
Convertible Preferred Stock, Series B, $10 par value, 3.5% annual dividend, 2,466,455 and 2,444,885 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively.	24,664,543	24,448,850
Stockholders' Equity (Deficit):
Common Stock, .001 Par Value, 280,000,000 Shares Authorized, 71,863,829 and 70,564,188 shares issued and outstanding as of March 31, 2024 and December 31, 2023.	71,863	70,564
Additional Paid in Capital	54,653,936	54,619,236
Accumulated Deficit	(93,042,036)	(90,323,289)
Total Stockholders' Equity (Deficit)	(38,316,237)	(35,633,489)
Total Liabilities and Stockholders' Equity (Deficit)	14,884,002	12,915,393
Related Party [Member]
Noncurrent Liabilities:
Notes Payable to Related Parties	$ 1,400,000	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Convertible Preferred Stock, Series B, par value (in Dollars per share)	$ 10	$ 10
Convertible Preferred Stock, shares issued	2,466,455	2,444,885
Convertible Preferred Stock, shares outstanding	2,466,455	2,444,885
Convertible Preferred Stock, Annual Dividend	3.50%	3.50%
Common Stock, Par Value (in Dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	280,000,000	280,000,000
Common Stock, shares issued	71,863,829	70,564,188
Common Stock, shares outstanding	71,863,829	70,564,188

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Revenues:
Revenues	$ 574,414	$ 467,035	$ 1,794,083	$ 1,480,452
Costs and Expenses:
Oil and Gas Lease Operating	512,400	316,363	1,292,525	1,331,165
Depreciation, Depletion and Amortization	56,547	57,317	253,726	231,224
Well Equipment Write Down	0	0	0	9,840
Lease Impairment	337,500	0	400,554	0
Legal and Accounting	142,950	95,667	485,114	368,810
Bad Debt Expense	103,447	0	279,491	0
Marketing	128,211	83,391	269,984	230,282
General and Administrative	369,646	384,373	1,197,677	1,262,542
Total Costs and Expenses	1,650,701	937,111	4,179,071	3,433,863
Gain (Loss) on Turnkey Drilling	0	(1,077)	527,715	1,338,305
Loss From Operations	(1,076,287)	(471,153)	(1,857,273)	(615,106)
Other Income (Expense):
Interest Expense	(108,004)	(327)	(207,744)	(1,383)
Other Gain	0	750	0	112,728
Net Loss	(1,184,291)	(470,730)	(2,065,017)	(503,761)
Less: Preferred Stock Dividend	221,410	213,807	653,730	629,007
Net Loss available to common stock	$ (1,405,701)	$ (684,537)	$ (2,718,747)	$ (1,132,768)
Shares used in computing Basic Net Loss per share (in Shares)	71,863,529	67,684,188	71,693,073	64,982,535
Basic and Diluted (Loss) Per Share (in Dollars per share)	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Shares used in computing Diluted Net Loss per share (in Shares)	71,863,529	67,684,188	71,693,073	64,982,535
Diluted Net Income (Loss) per Share (in Dollars per share)	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Oil and Gas [Member]
Revenues:
Revenues	$ 559,709	$ 458,954	$ 1,749,120	$ 1,447,698
Management Service [Member]
Revenues:
Revenues	$ 14,705	$ 8,081	$ 44,963	$ 32,754

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Loss	$ (2,065,017)	$ (503,761)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:
Depreciation, Depletion and Amortization	253,726	231,224
Gain on Turnkey Drilling Programs	(527,715)	(1,338,305)
Lease Impairment	400,554	0
Bad debt expense	279,491	0
Well Equipment Write Down	0	9,840
Stock Based Compensation	35,999	108,001
Gain on Other	0	(112,728)
Right of use asset depreciation	6,615	8,252
(Increase) Decrease in:
Other & Revenue Receivables	498,949	342,440
Prepaid Expenses and Other Assets	773	777,558
Accounts Payable and Accrued Expenses	(263,667)	278,542
Royalties Payable	(1,092)	0
Net Cash Used in Operating Activities	(1,381,384)	(198,937)
CASH FLOWS FROM INVESTING ACTIVITIES
Expenditures for Oil and Gas Properties and Other Capital Expenditures	(4,706,411)	(4,571,163)
Proceeds from Turnkey Drilling Programs	4,937,500	4,572,500
Net Cash Provided by Investing Activities	231,089	1,337
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from Related Party Note Payable	1,400,000	0
Principal Payments on Long-Term Debt	(6,961)	(8,916)
Net Cash Provided by (Used in) Financing Activities	1,393,039	(8,916)
Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash	242,744	(206,516)
Cash, Cash Equivalents, and Restricted Cash at Beginning of Period	5,527,521	3,900,134
Cash, Cash Equivalents, and Restricted Cash at End of Period	5,770,265	3,693,618
SUPPLEMENTAL DISCLOSURES OF CASH FLOWS INFORMATION:
Cash Paid for Interest	207,744	1,383
Cash Paid for Taxes	$ 8,050	$ 6,950

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) - USD ($)	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2022	$ 61,876	$ 54,447,923	$ (87,646,402)	$ (33,136,603)
Balance (in Shares) at Dec. 31, 2022	61,876,957
Cashless Warrant Exercise Issuance	$ 3,266	(3,266)
Cashless Warrant Exercise Issuance (in Shares)	3,266,055
Stock Issued in lieu of Compensation	$ 2,542	105,459		$ 108,001
Stock Issued in lieu of Compensation (in Shares)	2,541,176			2,541,176
Preferred Series B 3.5% Dividend			(629,007)	$ (629,007)
Net Loss			(503,761)	(503,761)
Balance at Sep. 30, 2023	$ 67,684	54,550,116	(88,779,170)	(34,161,370)
Balance (in Shares) at Sep. 30, 2023	67,684,188
Balance at Jun. 30, 2023	$ 67,684	54,550,116	(88,094,633)	(33,476,833)
Balance (in Shares) at Jun. 30, 2023	67,684,188
Preferred Series B 3.5% Dividend			(213,807)	(213,807)
Net Loss			(470,730)	(470,730)
Balance at Sep. 30, 2023	$ 67,684	54,550,116	(88,779,170)	(34,161,370)
Balance (in Shares) at Sep. 30, 2023	67,684,188
Balance at Dec. 31, 2023	$ 70,564	54,619,236	(90,323,289)	(35,633,489)
Balance (in Shares) at Dec. 31, 2023	70,564,188
Stock Issued in lieu of Compensation	$ 1,299	34,700		$ 35,999
Stock Issued in lieu of Compensation (in Shares)	1,299,641			1,299,641
Preferred Series B 3.5% Dividend			(653,730)	$ (653,730)
Net Loss			(2,065,017)	(2,065,017)
Balance at Sep. 30, 2024	$ 71,863	54,653,936	(93,042,036)	(38,316,237)
Balance (in Shares) at Sep. 30, 2024	71,863,829
Balance at Jun. 30, 2024	$ 71,863	54,653,936	(91,636,335)	(36,910,536)
Balance (in Shares) at Jun. 30, 2024	71,863,829
Preferred Series B 3.5% Dividend			(221,410)	(221,410)
Net Loss			(1,184,291)	(1,184,291)
Balance at Sep. 30, 2024	$ 71,863	$ 54,653,936	$ (93,042,036)	$ (38,316,237)
Balance (in Shares) at Sep. 30, 2024	71,863,829

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) (Parentheticals)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Common Stock [Member]
Preferred Series B Dividend	3.50%	3.50%	3.50%	3.50%

BASIS OF PRESENTATION: ACCOUNTING STANDARDS

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]

NOTE 1 – BASIS OF PRESENTATION: ACCOUNTING STANDARDS

Consolidation

Liquidity and Going Concern

Reclassifications

Use of Estimates

Revenue Recognition

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Oil & Condensate Sales	$	504,915		379,959		1,578,513		1,087,183
Natural Gas Sales		53,896		77,239		167,966		356,083
NGL Sales		898		1,756		2,641		4,432
Total	$	559,709		458,954		1,749,120		1,447,698

Crude oil and Condensate

Natural gas and NGLs

Turnkey Drilling

Restricted Cash

	September 30, 2024		December 31, 2023
Cash and Cash Equivalents	$	1,737,465	$	2,202,521
Restricted Cash		4,032,800		3,325,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	5,770,265	$	5,527,521

Equity Method Investments

Other Receivables, net

Fair Value Measurements

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Fair Values - Non-recurring

Dividends on Series B Convertible Preferred Stock

ACCOUNTING STANDARDS

Recently Adopted

None

OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

NOTE 2 – OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES

Oil and gas properties, equipment and fixtures consist of the following:

	September 30,			December 31,
	2024			2023
	(Unaudited)
Oil and Gas
Producing properties, including drilling costs	$	5,757,123		$	5,763,892
Undeveloped properties		3,697,446			778,839
Lease and well equipment		3,295,028			3,295,028
		12,749,597			9,837,759

Accumulated depletion, depreciation & amortization		(7,694,657	)		(7,443,661	)
Net capitalized costs		5,054,940			2,394,098

Commercial and Other
Vehicles		40,061			40,061
Furniture and equipment		1,103,362			1,103,362
		1,143,423			1,143,423
Accumulated depreciation		(1,137,102	)		(1,135,619	)
		6,321			7,804
Net capitalized costs	$	5,061,261		$	2,401,902

Acquisition costs of proved oil and gas properties are amortized using a unit-of-production method, computed on the basis of total proved oil and gas reserves.

Losses on properties sold are recognized when incurred or when the properties are held for sale and the fair value of the properties is less than the carrying value.

SERIES B PREFERRED STOCK

9 Months Ended

Sep. 30, 2024

Disclosure Text Block Supplement [Abstract]

Preferred Stock [Text Block]

NOTE 3 – SERIES B PREFERRED STOCK

INCOME (LOSS) PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

NOTE 4 – INCOME (LOSS) PER SHARE

Basic and diluted loss per share are calculated as follows:

	Three Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(1,184,291	)	$	(1,184,291	)	$	(470,730	)	$	(470,730	)
Less: Preferred Stock Dividend		221,410			221,410			213,807			213,807
Net Income (Loss) Attributable to Common Shareholders		(1,405,701	)		(1,405,701	)		(684,537	)		(684,537	)
Weighted average common shares outstanding		71,863,529			71,863,529			67,684,188			67,684,188
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,863,529			71,863,529			67,684,188			67,684,188
Per share:
Net (Loss)	$	(0.02	)	$	(0.02	)	$	(0.01	)	$	(0.01	)

	Nine Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(2,065,017	)	$	(2,065,017	)	$	(503,761	)	$	(503,761	)
Less: Preferred Stock Dividend		653,730			653,730			629,007			629,007
Net Income (Loss) Attributable to Common Shareholders		(2,718,747	)		(2,718,747	)		(1,132,768	)		(1,132,768	)
Weighted average common shares outstanding		71,693,073			71,693,073			64,982,535			64,982,535
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,693,073			71,693,073			64,982,535			64,982,535
Per share:
Net (Loss)	$	(0.04	)	$	(0.04	)	$	(0.02	)	$	(0.02	)

INCOME TAXES

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 5 – INCOME TAXES

	For the nine months ended
	September 30, 2024			September 30, 2023

Tax benefit computed at statutory rate of 21% at September 30, 2024 and 2023, respectively	$	(433,654	)		(104,425	)

Increase (decrease) in taxes resulting from:
Other non-deductible expenses		682			969
Change in valuation allowance		432,972			103,456
Provision (benefit)	$	-		$	-

ISSUANCE OF COMMON STOCK

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Equity [Text Block]

NOTE 6 – ISSUANCE OF COMMON STOCK

ALLOWANCE FOR CREDIT LOSSES

9 Months Ended

Sep. 30, 2024

Disclosure Text Block Supplement [Abstract]

Allowance for Credit Losses [Text Block]

NOTE 7 – ALLOWANCE FOR CREDIT LOSSES

Balance at December 31, 2022	$	2,757,549
Provision for credit loss		0
Write-offs charged against the allowance		10,624
Balance at September 30, 2023	$	2,746,925

Balance at December 31, 2023	$	1,837,551
Provision for credit loss		279,491
Write-offs charged against the allowance		93,740
Balance at September 30, 2024	$	2,023,302

NOTE PAYABLE TO RELATED PARTIES

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 8 – NOTE PAYABLE TO RELATED PARTIES

SUBSEQUENT EVENTS

9 Months Ended

Sep. 30, 2024

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 9 – SUBSEQUENT EVENTS

Series B Preferred Stock Exchange and Redemption

Release of Historical Liabilities

Pay vs Performance Disclosure - USD ($)	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ (1,184,291)	$ (470,730)	$ (2,065,017)	$ (503,761)

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Sep. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Accounting Policies, by Policy (Policies)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Consolidation

Liquidity and Going Concern [Policy Text Block]

Liquidity and Going Concern

Reclassification, Comparability Adjustment [Policy Text Block]

Reclassifications

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

Revenue [Policy Text Block]

Revenue Recognition

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Oil & Condensate Sales	$	504,915		379,959		1,578,513		1,087,183
Natural Gas Sales		53,896		77,239		167,966		356,083
NGL Sales		898		1,756		2,641		4,432
Total	$	559,709		458,954		1,749,120		1,447,698

Crude oil and Condensate

Natural gas and NGLs

Oil and Gas [Policy Text Block]

Turnkey Drilling

Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block]

Restricted Cash

	September 30, 2024		December 31, 2023
Cash and Cash Equivalents	$	1,737,465	$	2,202,521
Restricted Cash		4,032,800		3,325,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	5,770,265	$	5,527,521

Investment, Policy [Policy Text Block]

Equity Method Investments

Receivable [Policy Text Block]

Other Receivables, net

Fair Value Measurement, Policy [Policy Text Block]

Fair Value Measurements

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for assets or liabilities.

Fair Values - Non-recurring

Stockholders' Equity Note, Redeemable Preferred Stock, Issue, Policy [Policy Text Block]

Dividends on Series B Convertible Preferred Stock

New Accounting Pronouncements, Policy [Policy Text Block]

ACCOUNTING STANDARDS

Recently Adopted

None

BASIS OF PRESENTATION: ACCOUNTING STANDARDS (Tables)

9 Months Ended

Sep. 30, 2024

Accounting Policies [Abstract]

Disaggregation of Revenue [Table Text Block]

	For the three months ended September 30,				For the nine months ended September 30,
	2024		2023		2024		2023
Oil & Condensate Sales	$	504,915		379,959		1,578,513		1,087,183
Natural Gas Sales		53,896		77,239		167,966		356,083
NGL Sales		898		1,756		2,641		4,432
Total	$	559,709		458,954		1,749,120		1,447,698

Schedule of Cash and Cash Equivalents [Table Text Block]

	September 30, 2024		December 31, 2023
Cash and Cash Equivalents	$	1,737,465	$	2,202,521
Restricted Cash		4,032,800		3,325,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$	5,770,265	$	5,527,521

OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES (Tables)

9 Months Ended

Sep. 30, 2024

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment [Table Text Block]

Oil and gas properties, equipment and fixtures consist of the following:

	September 30,			December 31,
	2024			2023
	(Unaudited)
Oil and Gas
Producing properties, including drilling costs	$	5,757,123		$	5,763,892
Undeveloped properties		3,697,446			778,839
Lease and well equipment		3,295,028			3,295,028
		12,749,597			9,837,759

Accumulated depletion, depreciation & amortization		(7,694,657	)		(7,443,661	)
Net capitalized costs		5,054,940			2,394,098

Commercial and Other
Vehicles		40,061			40,061
Furniture and equipment		1,103,362			1,103,362
		1,143,423			1,143,423
Accumulated depreciation		(1,137,102	)		(1,135,619	)
		6,321			7,804
Net capitalized costs	$	5,061,261		$	2,401,902

INCOME (LOSS) PER SHARE (Tables)

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

Basic and diluted loss per share are calculated as follows:

	Three Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(1,184,291	)	$	(1,184,291	)	$	(470,730	)	$	(470,730	)
Less: Preferred Stock Dividend		221,410			221,410			213,807			213,807
Net Income (Loss) Attributable to Common Shareholders		(1,405,701	)		(1,405,701	)		(684,537	)		(684,537	)
Weighted average common shares outstanding		71,863,529			71,863,529			67,684,188			67,684,188
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,863,529			71,863,529			67,684,188			67,684,188
Per share:
Net (Loss)	$	(0.02	)	$	(0.02	)	$	(0.01	)	$	(0.01	)

	Nine Months Ended September 30,
	2024						2023
	Basic			Diluted			Basic			Diluted
Net Income (Loss)	$	(2,065,017	)	$	(2,065,017	)	$	(503,761	)	$	(503,761	)
Less: Preferred Stock Dividend		653,730			653,730			629,007			629,007
Net Income (Loss) Attributable to Common Shareholders		(2,718,747	)		(2,718,747	)		(1,132,768	)		(1,132,768	)
Weighted average common shares outstanding		71,693,073			71,693,073			64,982,535			64,982,535
Effect of dilutive securities		-			-			-			-
Weighted average common shares, including Dilutive effect		71,693,073			71,693,073			64,982,535			64,982,535
Per share:
Net (Loss)	$	(0.04	)	$	(0.04	)	$	(0.02	)	$	(0.02	)

INCOME TAXES (Tables)

9 Months Ended

Sep. 30, 2024

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

As a result, we will continue to record a full valuation allowance against the deferred tax assets in 2024.

	For the nine months ended
	September 30, 2024			September 30, 2023

Tax benefit computed at statutory rate of 21% at September 30, 2024 and 2023, respectively	$	(433,654	)		(104,425	)

Increase (decrease) in taxes resulting from:
Other non-deductible expenses		682			969
Change in valuation allowance		432,972			103,456
Provision (benefit)	$	-		$	-

ALLOWANCE FOR CREDIT LOSSES (Tables)

9 Months Ended

Sep. 30, 2024

Disclosure Text Block Supplement [Abstract]

Accounts Receivable, Allowance for Credit Loss [Table Text Block]

Balance at December 31, 2022	$	2,757,549
Provision for credit loss		0
Write-offs charged against the allowance		10,624
Balance at September 30, 2023	$	2,746,925

Balance at December 31, 2023	$	1,837,551
Provision for credit loss		279,491
Write-offs charged against the allowance		93,740
Balance at September 30, 2024	$	2,023,302

BASIS OF PRESENTATION: ACCOUNTING STANDARDS (Details) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023	Dec. 31, 2022
Accounting Policies [Abstract]
Working Capital (Deficit)	$ 10,990,782		$ 10,990,782
Retained Earnings (Accumulated Deficit)	(93,042,036)		(93,042,036)		$ (90,323,289)
Net Loss	(1,184,291)	$ (470,730)	(2,065,017)	$ (503,761)
Accounts Receivable, Allowance for Credit Loss	2,023,302	2,746,925	$ 2,023,302	2,746,925	$ 1,837,551	$ 2,757,549
Preferred Stock, Dividend Rate, Percentage			3.50%		3.50%
Dividends, Preferred Stock, Paid-in-kind	$ 221,410	$ 213,807	$ 653,730	$ 629,007

BASIS OF PRESENTATION: ACCOUNTING STANDARDS (Details) - Disaggregation of Revenue - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Disaggregation of Revenue [Line Items]
Revenues	$ 574,414	$ 467,035	$ 1,794,083	$ 1,480,452
Oil and Gas [Member]
Disaggregation of Revenue [Line Items]
Revenues	559,709	458,954	1,749,120	1,447,698
Oil [Member]
Disaggregation of Revenue [Line Items]
Revenues	504,915	379,959	1,578,513	1,087,183
Natural Gas [Member]
Disaggregation of Revenue [Line Items]
Revenues	53,896	77,239	167,966	356,083
Natural Gas Liquids (NGL) [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 898	$ 1,756	$ 2,641	$ 4,432

BASIS OF PRESENTATION: ACCOUNTING STANDARDS (Details) - Schedule of Cash and Cash Equivalents - USD ($)	Sep. 30, 2024	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022
Schedule Of Cash And Cash Equivalents Abstract
Cash and Cash Equivalents	$ 1,737,465	$ 2,202,521
Restricted Cash	4,032,800	3,325,000
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 5,770,265	$ 5,527,521	$ 3,693,618	$ 3,900,134

OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES (Details) - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Abstract]
Operating Lease, Impairment Loss	$ 400,554	$ 0
Contract with Customer, Liability	$ 11,328,332		$ 9,761,927

OIL AND GAS PROPERTY AND EQUIPMENT AND FIXTURES (Details) - Schedule of Property, Plant and Equipment - USD ($)	Sep. 30, 2024	Dec. 31, 2023
Oil and Gas
Producing properties, including intangible drilling costs	$ 5,757,123	$ 5,763,892
Undeveloped properties	3,697,446	778,839
Lease and well equipment	3,295,028	3,295,028
Oil and gas, gross	12,749,597	9,837,759
Accumulated depletion, depreciation and amortization	(7,694,657)	(7,443,661)
Oil and gas, net	5,054,940	2,394,098
Commercial and Other
Property, Plant and Equipment, Gross	1,143,423	1,143,423
Accumulated depreciation	(1,137,102)	(1,135,619)
Property, Plant and Equipment, Net	6,321	7,804
Oil and gas properties, equipment and fixtures	5,061,261	2,401,902
Vehicles [Member]
Commercial and Other
Property, Plant and Equipment, Gross	40,061	40,061
Furniture and Fixtures [Member]
Commercial and Other
Property, Plant and Equipment, Gross	$ 1,103,362	$ 1,103,362

SERIES B PREFERRED STOCK (Details)	9 Months Ended
SERIES B PREFERRED STOCK (Details)	Sep. 30, 2024
Series B Preferred Stock [Member]
SERIES B PREFERRED STOCK (Details) [Line Items]
Preferred Stock, Convertible, Terms	The Preferred Stock is convertible at the option of the security holder at the rate of ten shares of common stock for one share of Preferred Stock. The Preferred Stock has never been registered under the Securities Exchange Act of 1934, as amended, (“Exchange Act”), and no market exists for the Preferred Stock. Additionally, the Preferred Stock will automatically convert into shares of common stock at any time in which the Volume Weighted Average Price (“VWAP”) of our common stock exceeds $3.50 per share for 20 consecutive trading days, the shares of our common stock are registered under the Exchange Act, and the trading volume of shares of our common stock exceed 200,000 shares per day.

INCOME (LOSS) PER SHARE (Details) - shares	3 Months Ended		9 Months Ended
INCOME (LOSS) PER SHARE (Details) - shares	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Earnings Per Share [Abstract]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	24,664,550	24,235,050	24,664,550	24,235,050

INCOME (LOSS) PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Schedule Of Earnings Per Share Basic And Diluted Abstract
Net Income (Loss), Basic	$ (1,184,291)	$ (470,730)	$ (2,065,017)	$ (503,761)
Less: Preferred Stock Dividend, Basic	221,410	213,807	653,730	629,007
Less: Preferred Stock Dividend, Diluted	221,410	213,807	653,730	629,007
Net Income (Loss)	(1,184,291)	(470,730)	(2,065,017)	(503,761)
Less: Preferred Stock Dividend, Basic	221,410	213,807	653,730	629,007
Less: Preferred Stock Dividend, Diluted	221,410	213,807	653,730	629,007
Net Income (Loss) Attributable to Common Shareholders, Basic	(1,405,701)	(684,537)	(2,718,747)	(1,132,768)
Net Income (Loss) Attributable to Common Shareholders, Diluted	$ (1,405,701)	$ (684,537)	$ (2,718,747)	$ (1,132,768)
Weighted average common shares outstanding, Basic	71,863,529	67,684,188	71,693,073	64,982,535
Weighted average common shares outstanding, Diluted	71,863,529	67,684,188	71,693,073	64,982,535
Effect of dilutive securities, Basic	0	0	0	0
Effect of dilutive securities, Diluted	0	0	0	0
Weighted average common shares, including Dilutive effect, Basic	71,863,529	67,684,188	71,693,073	64,982,535
Weighted average common shares, including Dilutive effect, Diluted	71,863,529	67,684,188	71,693,073	64,982,535
Net (Loss) per share, Basic	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)
Net (Loss) per share, Diluted	$ (0.02)	$ (0.01)	$ (0.04)	$ (0.02)

INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation - USD ($)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Schedule Of Effective Income Tax Rate Reconciliation Abstract
Tax benefit computed at statutory rate of 21% at September 30, 2024 and 2023, respectively	$ (433,654)	$ (104,425)
Increase (decrease) in taxes resulting from:
Other non-deductible expenses	682	969
Change in valuation allowance	432,972	103,456
Provision (benefit)	$ 0	$ 0

INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (Parentheticals)	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Schedule Of Effective Income Tax Rate Reconciliation Abstract
Statutory rate	21.00%	21.00%

ISSUANCE OF COMMON STOCK (Details) - USD ($)	1 Months Ended	9 Months Ended
ISSUANCE OF COMMON STOCK (Details) - USD ($)	Apr. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
ISSUANCE OF COMMON STOCK (Details) [Line Items]
Stock Issued During Period, Shares, Conversion of Convertible Securities	3,266,055
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture		1,299,641	2,541,176
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture (in Dollars)		$ 35,999	$ 108,001
Board of Directors Chairman [Member]
ISSUANCE OF COMMON STOCK (Details) [Line Items]
Shares Issued, Value, Share-Based Payment Arrangement, after Forfeiture (in Dollars)		$ 36,000

ALLOWANCE FOR CREDIT LOSSES (Details) - Accounts Receivable, Allowance for Credit Loss - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Accounts Receivable Allowance For Credit Loss Abstract
Balance			$ 1,837,551	$ 2,757,549
Provision for credit loss	$ 103,447	$ 0	279,491	0
Write-offs charged against the allowance			93,740	10,624
Balance	$ 2,023,302	$ 2,746,925	$ 2,023,302	$ 2,746,925

NOTE PAYABLE TO RELATED PARTIES (Details) - USD ($)	Sep. 30, 2024	Feb. 09, 2024	Feb. 07, 2024	Dec. 31, 2023
NOTE PAYABLE TO RELATED PARTIES (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 3,000,000
Chief Executive Officer [Member]
NOTE PAYABLE TO RELATED PARTIES (Details) [Line Items]
Equity Ownership, Excluding Consolidated Entity and Equity Method Investee, Percentage		14.80%
Debt Instrument, Face Amount		$ 1,400,000
Debt Instrument, Interest Rate, Stated Percentage		18.00%
Related Party [Member]
NOTE PAYABLE TO RELATED PARTIES (Details) [Line Items]
Notes Payable, Noncurrent	$ 1,400,000			$ 0

SUBSEQUENT EVENTS (Details) - Subsequent Event [Member]	Oct. 11, 2024 USD ($) $ / shares shares
SUBSEQUENT EVENTS (Details) [Line Items]
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Grants in Period, Gross	25,000,000
Debt Conversion, Original Debt, Amount (in Dollars) \| $	$ 2,820,423
Senior Notes [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars) \| $	2,466,455
Other Liabilities [Member] \| Senior Notes [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Debt Instrument, Face Amount (in Dollars) \| $	$ 282,042
Series B Preferred Stock [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Conversion of Stock, Shares Converted	2,466,455
Conversion of Stock, Type of Stock Converted	Series B Preferred Stock
Preferred Stock, Par or Stated Value Per Share (in Dollars per share) \| $ / shares	$ 10
Conversion of Stock, Amount Converted (in Dollars) \| $	$ 24,664,550
Conversion of Stock, Shares Issued	2,466,455
Preferred Stock, Shares Outstanding	0
Common Stock [Member]
SUBSEQUENT EVENTS (Details) [Line Items]
Conversion of Stock, Shares Issued	22,198,095
Share-Based Compensation Arrangements by Share-Based Payment Award, Options, Grants in Period, Weighted Average Exercise Price (in Dollars per share) \| $ / shares	$ 0.1
Debt Conversion, Converted Instrument, Shares Issued	2,538,378

Royale Energy (QB) (USOTC:ROYL)
Historical Stock Chart
Von Dez 2024 bis Jan 2025

Click Here for more Royale Energy (QB) Charts.

Royale Energy (QB) (USOTC:ROYL)
Historical Stock Chart
Von Jan 2024 bis Jan 2025

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

ROYL Royale Energy Inc (QB)

News Royale Energy Inc (QB)

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen

Trends

Toplisten

Marktdaten

News

Werkzeuge

Märkte

Entdecken

Hot Features

Follow Feed

Optionen-Flow

Watchlist

ROYL Royale Energy Inc (QB)

News Royale Energy Inc (QB)

Kürzlich von Ihnen besucht

Unternehmen

Geschäft

Popular

App herunterladen