SAN DIEGO, Nov. 17, 2017 (GLOBE NEWSWIRE) — Royale Energy, Inc. (OTCQB:ROYL) (the “Company” or “Royale”) today announced the results of its annual meeting of shareholders. At the meeting, holders of Royale’s common stock voted to approve the following actions:
(1) adopting the Amended and Restated Agreement and Plan of Merger (the “Merger Agreement”) dated effective as of December 31, 2016, by and among Royale, Royale Energy Holdings, Inc., a Delaware corporation (“Holdings”), Royale Merger Sub, Inc., a California corporation and a direct, wholly-owned subsidiary of Holdings, Matrix Merger Sub, Inc., a California corporation and a direct, wholly-owned subsidiary of Holdings, and Matrix Oil Management Corporation (“Matrix”);
(2) issuing Holdings common stock to the limited partners of Matrix Investments, L.P., Matrix Las Cienegas Limited Partnership, and Matrix Permian Investments, L.P. in exchange for all limited partnership interests of such partnerships (other than the preferred limited partnership interests of Matrix Investments, L.P.);
(3) issuing Series B Preferred Stock by Holdings to the holders of certain preferred limited partnership interests of Matrix Investments, L.P., in accordance with the terms of the exchange agreement of Holdings with the holders of such preferred limited partnership interests attached as an exhibit to the Merger Agreement;
(4) issuing common stock by Holdings to stockholders of Matrix Oil Corporation (“Matrix Operator”) in exchange for common stock of Matrix Operator;
(5) approving the conversion of certain convertible notes issued by Royale into Royale common stock; and
(6) electing seven members of the Royale board of directors to serve until the 2018 annual meeting.
Also, today, in a separate meeting, shareholders of Matrix Oil unanimously approved the Merger Agreement.
Closing of the Merger remains conditioned upon Matrix’s senior lenders consent to the Merger Agreement. Because of the importance of the oil and gas assets securing Matrix’s senior debt, it is essential that Matrix either obtain consent from its lenders or find an alternative financing source to repay and replace the current lenders.
About Royale Energy, Inc.
Founded in 1986, Royale Energy, Inc. (OTCQB:ROYL) is an independent exploration and production company focused on the acquisition, development, drilling and marketing of oil and natural gas. Royale typically sells fractional working interests to accredited investors in wells drilled by Royale. Royale has its primary operations in the Sacramento and San Joaquin basins in California and has royalty interests in Alaska.
About Matrix Oil Management Corp.
Matrix is a private independent oil and natural gas production company based in Santa Barbara, California. The company formed in 1999 is focused on the acquisition and development of long-life, low-risk producing oil leases that have drilling upside or operations optimization opportunities. The company owns and operates oil-producing properties in the Los Angeles and San Joaquin Basins of California. It owns non-operated natural gas producing properties in the Sacramento Basin of California and oil-producing royalty and non-operated leases in the Permian Basin and Midland Basin.