Royale to Monetize Portion of Alaska Acreage
November 10 2015 - 7:56AM
Royale Energy, Inc. (NASDAQ:ROYL) today announced
it entered into an agreement to sell a portion of its Alaska
acreage for cash and a retained interest. Royale will receive
$2 million in cash and retain an Overriding Royalty Interest in
exchange for a 100% Working Interest in its Western Block
consisting of approximately 39,500 acres. The sale is subject to
approval by the state of Alaska.
In December 2011, Royale acquired 96,000 acres of leasehold
acreage on the Alaskan North Slope. Over the following four
years, the Company acquired and processed 3D seismic data, further
positioning the acreage for development. Following the transaction,
Royale will retain 57,000 acres for which it is evaluating
alternatives including similar de-risking, sale, or joint
venture.
Royale considers this sale a key step in its plan to strengthen
its balance sheet and regain compliance with NASDAQ listing
requirements. A portion of the sale proceeds will be used to fund
Royale’s upcoming drilling campaign scheduled to begin in December
2015.
Forward Looking Statements
In addition to historical information contained herein, this
news release contains “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995,
subject to various risks and uncertainties that could cause the
company’s actual results to differ materially from those in the
“forward-looking” statements. While the company believes its
forward looking statements are based upon reasonable assumptions,
there are factors that are difficult to predict and that are
influenced by economic and other conditions beyond the company’s
control. Investors are directed to consider such risks and other
uncertainties discussed in documents filed by the company with the
Securities and Exchange Commission.
Contact:
Royale Energy, Inc.
Chanda Idano
Director of Marketing & PR
619-383-6600
chanda@royl.com
http://www.royl.com
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