Royale Energy Inc., an El Cajon-based petroleum producer and marketer, said it is in discussions to acquire assets in Texas’ Permian Basin and the greater Los Angeles area.
Specifically, the business said it entered into a letter of intent to purchase non-operated interests in Permian Basin and California oil fields. Royale did not name the seller. The business said it hopes to close the acquisition in the third quarter.
Royale said the buy will add approximately 190 barrels of oil per day net for an acquisition price of $12 million. The reserves include the Jameson North field in Texas and a field in California near the Sansinena oil field.
Stock in Royale has the ticker symbol ROYL and trades over the counter. The company primarily operates in the Los Angeles and Sacramento basins.