SAN DIEGO, June 13, 2012 (GLOBE NEWSWIRE) -- Royale Energy, Inc. (Nasdaq:ROYL) today reported that it is commencing, subject to market conditions, an underwritten public offering of up to 200,000 Units, with each Unit comprised of one share of its perpetual non-convertible 8.0% Series A1 Cumulative Preferred Stock, one Class A stock purchase warrant to purchase one share of its common stock with an exercise price of $5.55 per share and one Class B stock purchase warrant to purchase one share of its common stock with an exercise price of $10.00 per share. The Series A1 Preferred Stock will have a liquidation preference of $17.50 per share. The offering is being made on a "best-efforts" basis pursuant to an effective shelf registration statement that the Company previously filed with the Securities and Exchange Commission and which was declared effective on February 14, 2012. Upon issuance, the Company anticipates that the 8.0% Series A1 Cumulative Preferred Stock will be listed for trading on the NASDAQ Capital Market under the ticker symbol "ROYL.PR.A."
C. K. Cooper & Company is acting as sole book running manager for the offering.
The Company intends to use net proceeds from the offering for repayment of all senior debt and general corporate purposes, which may include without limitation, capital expenditures on oil and gas properties. Pending any specific application, the Company may initially invest funds in short-term marketable securities.
Copies of the currently effective shelf registration statement and base prospectus, the preliminary prospectus supplement and final prospectus supplement (when available) can be obtained at the Securities and Exchange Commission's website, http://www.sec.gov, or by written request to Royale Energy, Inc., 7676 Hazard Center Drive, Ste. 1500, San Diego, California 92108, Attention: Chief Financial Officer. Alternatively, you may obtain these documents by contacting the book-running manager as follows:
C. K. Cooper & Company
Syndicate Department
Hue Lapham
949-477-9300/hlapham@ckcooper.com
This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities of the Company, nor shall there be any sale of these securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About the Company
Headquartered in San Diego, Royale Energy, Inc. is an independent energy company. The company is focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains. It has been a leading independent producer of oil and natural gas for over 20 years. The company's strength is continually reaffirmed by investors who participate in funding over 50% of the company's new projects. Additional information about Royale Energy, Inc. is available on its web site at www.royl.com.
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.