Royale Energy, Inc. (OTCMKTS:ROYL) Files An 8-K Entry into a Material Definitive Agreement

On September 19, 2018, Royale Energy, Inc. (“Royale”) entered into a purchase and sale agreement (“PSA”) to acquire interests in oil fields in the Texas Permian Basin and Southern California from West Coast Energy Properties Limited Partnership, a privately held limited partnership. Royale will purchase non-operated interests in the Whittier field in the LA Basin and Bellevue field in the San Joaquin basin in California where Royale already has a joint venture with RMX Resources and in the Jameson North field in the Permian Basin and Big Mineral Creek in the Marietta Basin in North Texas.

The acquisition will add approximately 234 barrels of oil equivalent per day net and 3.1 million barrels of oil equivalent in reserves for an acquisition price of $12 million dollars. Royale will be acquiring the total proved reserves for $3.87 per barrel of oil equivalent in the ground (this includes both oil and natural gas reserves). The reserves are oil weighted at 82 percent.

Royale’s joint venture partner, RMX Energy, LLC, has the right under the terms of the RMX Energy Company Agreement to acquire up to 50% of Royale’s acquired interest in the California properties from Royale at the same price and terms as are provided in the PSA.

Closing on the purchase is scheduled to occur within 45 days of execution of the agreement, and Royale has the option to extend the outside closing date by an additional 30 days by paying a $500,000 deposit. The closing is subject to completion of due diligence by the parties and other closing terms and conditions which are customary in similar oil and gas lease purchase transactions. The PSA also contains customary representations and warranties by the parties. Closing of the purchase is contingent on Royale’s arranging of acceptable financing. A copy of the PSA is attached as an exhibit to this Report.

Item 9.01Financial Statements and Exhibits

(d)Exhibits

Royale Energy, Inc. ExhibitEX-10.1 2 re10_1ex.htm PURCHASE AND SALE AGREEMENT Exhibit 10.1 PURCHASE AND SALE AGREEMENT by and between WEST COAST ENERGY PROPERTIES,…To view the full exhibit click here
About Royale Energy, Inc. (OTCMKTS:ROYL)
Royale Energy, Inc. is an independent oil and natural gas producer. The Company is engaged in the production and sale of natural gas, acquisition of oil and gas lease interests and proved reserves, drilling of exploratory and development wells, and selling of fractional working interests in its wells to be drilled. The Company owns wells and leases located mainly in the Sacramento Basin and San Joaquin Basin in California, as well as in Utah, Texas, Oklahoma, Louisiana and Alaska. The Company sells a portion of the working interest in each well it drills or participates in to third party investors and retains a portion of the prospect for its own account. The Company owns proved developed producing and non-producing reserves of oil and natural gas in Utah, Texas, Oklahoma and Louisiana, as well as prospective shale oil property in Alaska. The Company has drilled over two wells in northern California.