Royale planning 2014 seismic program

Royale Energy Inc. plans to start North Slope seismic work early next year.

Royale Energy and its joint venture partner Rampart Energy Ltd. plan to name a contractor for the program soon, according to the California-based independent.

The program comes as Rampart recently gave Royale its final cash payment under their joint venture agreement, according to Royale. Under the deal, Rampart was required to pay Royale $3.4 million in two payments. The final payment gives Rampart a 10 percent working interest in some 39,000 acres of Royale leases on the North Slope. Rampart can earn an additional 20 percent interest in the project by funding the seismic program.

To deal includes an option for Rampart to earn an additional 45 percent interest on the so-called Western Block by drilling and completing two wells on the leases by March 2015. The deal also includes provisions for Rampart to earn up to 75 percent working interest in the so-called Central Block of leases by meeting additional financing targets.

The program is primarily designed to test the potential of the source rock on the acreage.

—Eric Lidji