SIOUX FALLS, S.D. -
Shares of Royale Energy Inc. jumped Tuesday after the company announced a natural gas discovery in California's Sacramento Basin.
Royale shares gained 58 cents, or 18.6 percent, to $3.70 in midday trading.
Donald Hosmer, Royale's chief executive, said the company previously drilled four commercially productive wells to the shallower Nortinville formations on Andrus Island, but this was the first attempt to drill to the deeper Starkey Channel.
Royale said that after completing and testing the Starkey sand in the Andrus Island East well, it was flowing more than 1 million cubic feet of natural gas per day.
"The deeper objective in the well was higher risk but because of the potential upside the company felt the risk was justified," Hosmer said in a statement.
San Diego-based Royale is an independent energy company focused on development, acquisition, exploration and production of natural gas and oil in California, Texas and the Rocky Mountains.
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