Royale Energy, Inc. has signed a letter of intent to receive $100 per acre in cash, plus other consideration including stock options and exploration cost sharing for a total of over $1,200 per acre for up to 50,875 acres of its 96,000 acre Alaska North Slope holdings.

An undisclosed company has agreed in principal to fund all exploration costs for seismic data acquisition and the drilling of two horizontal wells for a total of $38 million. Additionally Royale will receive $3,373,659 USD for the 33,736.59 acres on the company's Western Block, together with stock options and a right to receive an additional $1.7 million USD for 17,000 acres in the company's Central Block.

"We are pleased to have found a company that shares our vision and optimism for the potential of these important Alaska shale oil resources," noted Stephen Hosmer, Royale Co-CEO. "This agreement will allow us to confirm participation in a planned 3D seismic data acquisition scheduled to take place later this year over our acreage."

Tags: Royale Energy