SAN DIEGO, Nov. 10, 2015 (GLOBE NEWSWIRE) -- 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.