GENERAL39208

• Permit No: M1982090
• IBM Index Class Name: General Documents
• Doc Name: ROYAL RESOURCES CORP ANNUAL REPORT 1986
• Annual Report Year: 1986
• Media Type: D
• Archive: No

Operation Highlights
Drilling Results
In fiscal 1986, the Company participated in the Drilling of R
gross (L-198 net) development wells and in 15 gross (2.375
ne0 exploratory wells. Eight of the development wells were
determined to he producers and four were dry holes. Of the
exploratory wells drilled, lour were producers and 11 were
dry holes. The table below shows the drilling activity of the
Company since 1982 and the results derived Irom (hose
efforts. The "net" figures in the tables below reflect the
Company's working interest at the current time.
Exoloratorv Wells
Dnllcd Rnducl rve Drv
1"ear Ended Grus~ Nel Gros Nel Gruel Nel
lone 30, 1982 I1 .SFS _ .015 9 .500
lone 30, 1983 7 Ah7 0 U i abi
lone 30, 1984 38 8 5H6 ri I ?%3 30 7.313
lone 30, 1985 43 10 3911 H I .6Uri 35 H.78'_
lone AI, 1986 I S 2.3:5 4 .485 I I 1 ri9n
Development Wells
Drilled Pnlduclive Drv
Year Ended Gross Nel Gross Nel G«na Nel
lone 30, 1982 19 l.as3 la 1.097 5 351,
lone 3U, 1983 17 '_.213 In ?.013 1 .'1111
lone 30, IyHa 13 1 552 '1 1.'_11 4 .3a1
lone 311, 1985 ;U 5 157 25 3.fla: 5 1 31!1
Inne 30, 1986 1' 149ri 4 LU56 a 4a!
TI lone 30, 1986, Royal wa<parliapaligg in the dnllinp of one krms 1 313
nell development well which was determined to be a producer ailer Inne 30
1986
Reserves
Royal's year-end proven oil and gas reserve estFinates, as
prepared by the Company and reviewed by John 1. Wanner,
Consulting Petroleum Engineer, are 260,2(16 barrels of oil
and 5,394,451 M11CF (thousand cubic feet) o(gas, with an
unescalated present value of estimated future net revenues u(
approximately $8 million, discounted at 10 percent These
(igures compare to last year's reserve estimates of 836,326
barrels of oil and 7,771,595 MCF of gas with an unescalated
present value of estimated future net revenues of $24.8
million, discounted at 10 percent.
The decrease In reserves occurred as a result of
dowmvard revisions in the estimated reserves of oil and gas
and production for the current fiscal year. Most of the
decrease in reserves is attributed ro the decrease in estimated
reserves at the Tulare Lake Field in Kings County, California.
Tulare Lake's problems are primarily clue to casing damage in
several wells and various reservoir production problems such
as asphaltine plugging and sand inflow. Produr--lion for the
1986 fiscal year was 92,492 barrels of oil and 716,683 MCF
of gas compared to 17',953 barrels of oil and 707,216 MCF
of gas for the last fiscal year. Further details on the
Company's reserves appear in the Operation Flighlights and
in the Notes to Consolidated Financial Statements.
Proved Reserves
(Millions)
oa
GAS
Future Net Revenues, Discounted At 10 Percent
(Millions) (unescalated Basis)
4
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