(MENAFN- ProactiveInvestors - N.America) Royale Energy Inc (NASDAQ:ROYL) has signed a letter of intent to merge with the privately held Matrix Oil Corporation.
The US$41.5mln merger could be completed by the fourth quarter of 2016, said Monday's announcement.
The combined company should have estimated daily production of approximately 650 barrels of oil equivalents per day.
"The combination of Royale's great shareholder base and 30-year operating history, with Matrix's strong management team, technical expertise, current production and solid reserve base provides our company with the catalyst we needed for strong continuous growth,' said Harry Hosmer, founder and chairman of Royale.
"This transaction will strengthen us financially and strategically position us for further acquisitions. In addition, this transaction places us squarely on the path for qualification and timely application to re-list on NASDAQ.'
The merger remains subject to completion of due diligence reviews and shareholder approval.
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