Royale Energy, Inc. and Matrix Oil Management Corporation Announces Executive Changes
November 30, 2016 at 12:16 pm EST
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Royale Energy, Inc. and Matrix Oil Management Corporation entered into a definitive agreement to merge whereby Royale will acquire substantially all of Matrix, and certain Matrix affiliated entities in exchange for 50% of the common stock of the Company, the assumption of Matrix’s senior secured debt in the amount of approximately $12.4 million, and the issuance of approximately $20.1 million of a newly created Series B Convertible Preferred stock to Matrix’s shareholders. The Transaction remains subject to the approval of the shareholders of both companies. Upon consummation of the Transaction, Jonathan Gregory will continue to serve as Chief Executive Officer of Royale, while Johnny Jordan, President of Matrix, will serve as President and Chief Operating Officer. The board of the combined company will be comprised of four members from the current Royale board and four members to be appointed by Matrix. Two of the Matrix appointees will be Rod Eson and Jonathan Clarkson. Eson and Clarkson bring over 40 years each of oil and gas industry expertise to the Royale board. Harry Hosmer will continue to serve as non-executive Chairman until his planned retirement at the next annual shareholder meeting.
Royale Energy Funds, Inc. is an independent oil and gas producer. The Company also performs turnkey drilling operations. The Company owns wells and leases in various geological basins located primarily in California, Texas, Oklahoma, and Utah, and offers fractional working interests. The Company also owns an overriding royalty interest in discovery in Alaska. It usually sells a portion of the working interest in each well it drills or participates with third-party participants and retains a portion of the prospect for its own account. The Company generally sells working interests in its prospects to accredited investors in exempt securities offerings. The prospects are typically bundled into multi-well investments, which permit third-party investors to diversify their investments by investing in several wells at once instead of investing in single-well prospects. The Company owns an interest in approximately 70 producing oil and natural gas wells.