NOTE 5 - LONG-TERM DEBT

12 Months Ended

Dec. 31, 2016

Disclosure Text Block [Abstract]

Long-term Debt [Text Block]

NOTE 5 - LONG-TERM DEBT

	2016		2015
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.  In June 2016, the sale of the building was completed and the related principal and interest payments were paid in full.	$	-	$	1,446,853
Total Long Term Debt	$	-	$	1,446,853
Less Current Maturity		-	$	30,528
Long Term Debt Less Current Portion	$	-	$	1,416,325