Royale Energy Inc., San Diego, and privately held Matrix Oil Corp., Santa Barbara, have agreed to merge in a $41.5-million deal making Matrix a wholly owned subsidiary of Royale.
If the transaction is approved, Royale will issue stock and assume $12.5 million of Matrix’s secured term debt.
Matrix has oil and gas properties in the Sacramento, San Joaquin, and Los Angeles basins of California and Permian basin of Texas. It has proved reserves of 12.2 million boe.
Royale’s primary operations are in the Sacramento and San Joaquin basins.
The combined company will have production of about 650 boe/d.
At completion of the merger, Jonathan Gregory will remain chief executive officer of Royale. Johnny Jordan, now president of Matrix, will become president and chief operating officer.