Royale Energy, Inc. (Royale Energy) is an independent oil and natural gas producer. Royale Energy's principal lines of business are the production and sale of natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of both exploratory and development wells, and sales of fractional working interests in wells to be drilled by Royale Energy. It operates in two segments: Oil and Gas Producing and Exploration and Turnkey Drilling Services. Royale Energy owns wells and leases located mainly in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, and Louisiana. Royale Energy sells a portion of the working interest in each lease that it acquires to third party investors and retains a portion of the prospect for its own account. During the year ended December 31, 2010 (during 2010), Royale Energy continued to explore and develop natural gas properties with a focus in California.