Royale Energy to merge with Matrix Oil

Royale Energy Inc. said July 25 that it has signed a letter of intent to merge with privately held Matrix Oil Corp. The $41.5 million transaction is subject to completion of due diligence reviews and definitive documentation and stockholder approval. Royale said the companies seek to complete the merger in the fourth quarter.

Matrix has oil and gas properties in the Sacramento, San Joaquin and Los Angeles basins in California and in the Permian basin in Texas.

Royale is an independent exploration and production company focused on natural gas with primary operations in the Sacramento and San Joaquin basins.

Royale holds some 40,000 acres of undeveloped state of Alaska oil and gas leases on the North Slope.

Royale said combined production from the two companies should be some 650 barrels of oil equivalent per day. The company will retain the Royale Energy name. Matrix will become a wholly owned subsidiary.

- Petroleum News