Royale Energy and CIC Partners Form Joint Venture to Develop Sansinena Oil Field
April 19 2018 - 8:02AM
Royale Energy, Inc. (OTCQB:ROYL) and CIC Partners
(“CIC”), a Dallas-based private equity firm, have formed a new
Joint Venture called RMX Resources which will fund, drill and
produce oil at the prolific Sansinena Oil Field. CIC contributed an
aggregate of $25,000,000 in cash in exchange for an 80% equity
interest and Royale received a 20% equity interest plus working
capital in exchange for contribution of Sansinena and surrounding
area assets.
This structure allowed Royale to fully repay its secured debt
and has given Royale a stronger financial balance sheet while
keeping significant exposure to the upside potential of this legacy
field and allows the company to continue growing by developing its
CRC wells in the Rio Vista field and other Permian Basin prospects
in Texas.
The letter agreement can be viewed in the previously filed
8K.
About Royale Energy, Inc.
Founded in 1986, Royale is an independent exploration and
production company focused on the acquisition and development oil
and natural gas. Royale’s primary operations are focused in the Los
Angeles and Sacramento basins of California with non-operated and
royalty interests West Texas and Alaska. Royale’s Direct Working
Interest program typically sells fractional working interests to
accredited investors in certain wells drilled by Royale.
About CIC Partners
CIC Partners is a middle-market private equity firm that invests
in growth-oriented companies primarily in the food, restaurant, and
energy industries. CIC manages the personal capital of its
investment team, operating partners and strategic investors and
seeks to partner with owner-operators, founders and management
teams. CIC looks for opportunities where it can leverage the
collective experience of its investment team and its operating
partners, who are successful CEOs and entrepreneurs, to guide,
support and add value to portfolio companies. Based in Dallas,
Texas, the firm has been generating wealth in private-equity
investing for its investors and management teams for over 25
years.
Forward-Looking Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities and
Exchange Act of 1934, as amended. Statements that are not strictly
historical statements constitute forward-looking statements and may
often, but not always, be identified by the use of such words such
as "expects," "believes," "intends," "anticipates," "plans,"
"estimates," "potential," "possible," or "probable" or statements
that certain actions, events or results "may," "will," "should," or
"could" be taken, occur or be achieved. The forward-looking
statements include statements about future operations, estimates of
reserve and production volumes and the anticipated timing for
closing the proposed merger. Forward-looking statements are based
on current expectations and assumptions and analyses made by Royale
in light of experience and perception of historical trends, current
conditions and expected future developments, as well as other
factors appropriate under the circumstances. However, whether
actual results and developments will conform with expectations is
subject to a number of risks and uncertainties, including but not
limited to: the possibility that the companies may be unable to
obtain stockholder approval or satisfy the other conditions to
closing; the possibility that the combined company may be unable to
obtain an acceptable reserve-based credit facility; that problems
may arise in the integration of the businesses of the two
companies; that the acquisition may involve unexpected costs; the
risks of the oil and gas industry (for example, operational risks
in exploring for, developing and producing crude oil and natural
gas); risks and uncertainties involving geology of oil and gas
deposits; the uncertainty of reserve estimates; revisions to
reserve estimates as a result of changes in commodity prices; the
uncertainty of estimates and projections relating to future
production, costs and expenses; potential delays or changes in
plans with respect to exploration or development projects or
capital expenditures; health, safety and environmental risks and
risks related to weather; further declines in oil and gas prices;
inability of management to execute its plans to meet its goals,
shortages of drilling equipment, oil field personnel and services,
unavailability of gathering systems, pipelines and processing
facilities and the possibility that government policies may change.
Royale's annual report on Form 10-K for the year ended December 31,
2016, recent current reports on Form 8-K, and other Securities and
Exchange Commission ("SEC") filings discuss some of the important
risk factors identified that may affect its business, results of
operations, and financial condition. Royale and Matrix undertake no
obligation to revise or update publicly any forward-looking
statements, except as required by law.
Contact:Royale Energy, Inc.Chanda IdanoDirector
of Marketing &
PR619-383-6600chanda@royl.comhttp://www.royl.com
(MM) (NASDAQ:ROYL)
Historical Stock Chart
From Aug 2024 to Sep 2024
(MM) (NASDAQ:ROYL)
Historical Stock Chart
From Sep 2023 to Sep 2024