Key Developments For Royale Energy Inc
Royale Energy Inc (ROYL.O) (Consolidated Issue listed on NASDAQ Capital Market)
Royale Energy, Inc. Tests New Field Discovery
Royale Energy, Inc. announced the test results of the Goddard 7-1. On October 15 the Company announced a new field discovery near its successful Lonestar field. This week’s completion activities resulted in a stabilized flow rate of 2,450 MCF per day on a restricted choke. Based on these results the well is capable of significantly higher producing rates, and the Company expects to begin production at an initial rate of 2,500 MCF per day. The first follow up to the Goddard discovery began drilling October 28. The Wylie #1 will test a similar nearby 3D seismic amplitude anomaly. Royale Energy will drill additional follow up wells by the end of this year.
Royale Energy, Inc. Announces Agreement for $2 Million Placement
Royale Energy, Inc. announced the signing of a definitive agreement for the private placement of approximately $2 Million of common stock and warrants on October 16, 2009. Funds from the offering will be used for working capital that will allow the Company to accelerate drilling of wells in follow up to the recently announced discovery. The terms of the agreement include the sale of 623,053 shares of common stock at $3.21 per share, and warrants which are immediately exercisable for a period of 5 years into 342,679 shares in the aggregate at $3.53 per share. The warrants contain customary adjustments for corporate events such as reorganizations, splits and dividends, and the exercise price of such warrants is subject to weighted-average anti-dilution adjustments in the event of additional issuances of common stock below the exercise price then in effect. J.P. Turner & Company acted as agent for the placement to a single institutional investor.
Royale Energy, Inc. Discovers New Natural Gas Field
Royale Energy, Inc. announced that after reaching a total depth of 6200 feet, it has set pipe on what the Company believes to be a significant new discovery. The Goddard 7-1 which commenced drilling on September 23 was located one mile north of the boundary of the company’s successful Lonestar field. The well was drilled to test a significant 3D seismic amplitude at a previously unexplored depth. At this depth the well encountered higher pressure than those produced in the Lonestar field increasing the expected rate of gas recovery. This new field discovery provides Royale Energy with significant new development opportunities to increase its production and natural gas reserves. Current prices for its PG&E citygate is $5.04 MCF. The Company has 2,000 MCF per day sold through December 2009 at $4.85 MCF.
Royale Energy, Inc. Announces Agreement for $1.1 Million Placement
Royale Energy, Inc. announced signing of a definitive agreement for the private placement of approximately $1.1 Million of common stock and warrants. Funds from the offering, expected to close later Wednesday, will be used for general working capital. The terms of the agreement include the sale of 552,764 shares of common stock at $1.99 per share. The warrants include: Series A Warrants, which are immediately exercisable for a period of five years into 329,850 shares at $2.19 per share; Series A-1 Warrants, which are exercisable beginning six months and one day after the closing date (February 6, 2010) for a period of five years into 1,808 shares at $2.19 per share, Series B Warrants, which are immediately exercisable for a period of up to one year into 511,628 shares at $2.15 per share and Series C Warrants, which are immediately exercisable for a period of five years into 306,977 shares at $2.19 per share but only to the extent that the Series B Warrants are exercised and only in the same percentage that the Series B Warrants are exercised. .P. Turner & Company held a key role in the placement by acting as agent for the placement to a single institutional investor.
Royale Energy, Inc. Secures $15 Million
Royale Energy, Inc. announced that it has secured a principal credit line of $15 million to help further its operational and exploration activities. The credit line replaces Royale`s existing loan agreement with Guaranty Bank, FSB.
