NOTE 5 - LONG-TERM DEBT

12 Months Ended

Dec. 31, 2015

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

NOTE 5 - LONG-TERM DEBT

	2015		2014
On December 24, 2013, Royale Energy, Inc. entered into an agreement between the Company, as buyer, and North Island Financial Credit Union as seller, for the purchase of commercial property in San Diego, California, for a purchase price of $2,000,000, of which $500,000 was paid in cash on the date of purchase, and $1,500,000 was borrowed from AmericanWest Bank, NA, with a note secured by the property being purchased.  The note carries an interest rate of 5.75% until paid in full.  Royale will pay this loan in 119 regular payments of $9,525 each and one balloon payment estimated at $1,150,435. Royale’s first payment was due February 1, 2014, and all subsequent payments are due on the same day of each month after that. Royale’s final payment will be due on January 1, 2024, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Stephen M Hosmer, President, CFO is named as a personal guarantor of the loan. The loan agreement contains certain covenants that, among other things, Royale must maintain a ratio of EBITDA-Debt Service Coverage in excess of 1.50 to 1.00.  At December 31, 2015, Royale was not in compliance with this covenant, but obtained a forbearance from the bank from terms of that covenant to May 26, 2016.  The Company is currently in the process of finalizing the sale of the office building and associated land, which is expected to resulting full payment of the long-term debt.  However, there is no guarantee that the sale will be completed.	$	1,446,853	$	1,475,884
Total Long Term Debt	$	1,446,853	$	1,475,884
Less Current Maturity		30,528	$	29,031
Long Term Debt Less Current Portion	$	1,416,325	$	1,446,853

Maturities of long-term debt for the years subsequent to December 31, 2015 are as follows:

Year Ended December 31,
2016	$	30,528
2017	$	32,597
2018	$	34,549
2019	$	36,618
Thereafter	$	1,312,561
Total	$	1,446,853