NOTE 6 - FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS

6 Months Ended

Jun. 30, 2011

Segment Reporting Disclosure [Text Block]

NOTE 6 – FINANCIAL INFORMATION RELATING TO INDUSTRY SEGMENTS

Royale Energy identifies reportable segments by product and country, although Royale Energy currently does not have foreign country segments. Royale Energy includes revenues from both external customers and revenues from transactions with other operating segments in its measure of segment profit or loss. Royale Energy also includes interest revenue and expense, DD&A, and other operating expenses in its measure of segment profit or loss.

Royale Energy's operations are classified into two principal industry segments. Following is a summary of segmented information for the three months ended June 30, 2011, and 2010:

	Oil and Gas
	Producing		Turnkey
	and		Drilling
	Exploration		Services			Total
Six Months Ended June 30, 2011:
Revenues from External Customers	$	3,302,074	$	2,507,191		$	5,809,265
Supervisory Fees		486,931		0			486,931
Interest Revenue		0		15,605			15,605
Interest Expense		37,725		37,725			75,450
Operating Expenses for Segment Assets		2,365,247		2,892,610			5,257,857
Depreciation, Depletion and Amortization		1,184,233		62,328			1,246,561
Gain on Sale of Assets		793,156		0			793,156
Income Tax Expense (Benefit)		357,913		(169,024	)		188,889
Total Assets	$	24,873,788	$	1,309,147		$	26,182,935
Net Income (Loss)	$	637,043	$	(300,843	)	$	336,200

	Oil and Gas
	Producing			Turnkey
	and			Drilling
	Exploration			Services		Total
Six Months Ended June 30, 2010:
Revenues from External Customers	$	1,425,411		$	3,978,564	$	5,403,975
Supervisory Fees		353,284			0		353,284
Interest Revenue		0			6,907		6,907
Interest Expense		5,272			5,272		10,544
Operating Expenses for Segment Assets		1,895,586			2,310,796		4,206,382
Depreciation, Depletion and Amortization		454,691			23,931		478,622
Lease Impairment		57,024			57,024		114,048
Gain on Marketable Securities		0			164,383		164,383
Income Tax Expense (Benefit)		(235,703	)		651,777		416,074
Total Assets	$	20,653,198		$	1,087,010	$	21,740,208
Net Income (Loss)	$	(398,175	)	$	1,101,054	$	702,879