UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549 

 

 

FORM 8-K 

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported): December 12, 2024

 

 

Royale Energy, Inc.

(Exact Name of Registrant as Specified in Charter) 

 

 

Delaware

  

000-55912

  

81-4596368

(State or Other Jurisdiction

of Incorporation)

  

(Commission File Number)

  

(I.R.S. Employer Identification No.)
   

1530 Hilton Head Road, Suite 205

El Cajon, California

  

92019

(Address of Principal Executive Offices)

  

(Zip Code)

 

(619) 383-6600

(Registrant’s Telephone Number, Including Area Code)

 

                                                                                                         

(Former Name or Former Address, if Changed Since Last Report) 

 

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

 

☐

Written communication pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

☐

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

☐

Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

☐

Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 

 

Item 7.01 Regulation FD Disclosure.

 

On December 10, 2024, the Company issued updates to participants in its drilling projects Black Gold IV, and Black Gold V. Copies of the updates are furnished herewith as Exhibit 99.1 and Exhibit 99.2, respectively.

 

In accordance with General Instructions B.2 and B.6 of Form 8-K, the foregoing information, including Exhibit 99.1 and Exhibit 99.2, shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the ”Exchange Act”) or otherwise subject to the liabilities of that section, nor shall such information and Exhibit be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.

 

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

The following exhibits are included with this Current Report on Form 8-K:

 

Exhibit No.     Description
     
Exhibit 99.1   Black Gold IV Well Update
     
Exhibit 99.2   Black Gold V Well Update
     
Exhibit 104   Cover Page Interactive Data File (embedded within the Inline XBRL document)

                

 

 
 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: December 12, 2024

 

  ROYALE ENERGY, INC.
   
 

/s/ Johnny Jordan                           

Johnny Jordan

Chief Executive Officer

 

 

 

 

 

 

 

 
false 0001694617 true 0001694617 2024-12-12 2024-12-12

 

Exhibit 99.1

 

Black Gold IV - Project Update

 

Katy

 

Katy 1H

 

December 10, 2024

 

The Katy 1H production revenue was received last week and will be on your monthly December distribution.

 

In May, Royale Energy received an offer from a major oil company to purchase its interest in the Pradera Fuego field. After thorough deliberation, Royale declined the offer, reaffirming its commitment to developing the field alongside its investors.

 

Meanwhile, Ares Energy, the operator of the field and majority owner with a 70% interest, decided to monetize its holdings. Over the summer, Ares opened a data room to prospective buyers, attracting interest from over 50 companies, including several major oil firms, who signed non-disclosure agreements to review the project’s data.

 

After multiple rounds of negotiations following the submission of bids in September, Ares initiated discussions for a Purchase and Sale Agreement. During this process, Ares paused drilling operations to focus on the sale, with plans to resume drilling upon the transaction’s completion.

 

This temporary delay in operations has yielded positive developments. First, the interest shown by larger operators underscores the substantial value of the Pradera Fuego field. Additionally, the possibility of a well-capitalized new operator could accelerate the drilling and development timeline. Should the sale not proceed, Ares Energy will remain the operator, a favorable outcome given its excellent track record of successfully drilling the project’s first seven wells and its strong collaboration with Royale Energy.

 

A resolution is expected soon, after which a detailed update on the timeline for resuming drilling operations will be provided.

 

Despite the temporary delay, investors in the Black Gold IV project benefit from secured proven oil and natural gas reserves.

 

Thank you, and all the best,

 

Royale Team

 

 

 

Exhibit 99.2

 

Black Gold V Well Update

 

December 10, 2024

  

The Black Gold V was closed for further investment in early October.

 

In May, Royale Energy received an offer from a major oil company to purchase its interest in the Pradera Fuego field. After thorough deliberation, Royale declined the offer, reaffirming its commitment to developing the field alongside its investors.

 

Meanwhile, Ares Energy, the operator of the field and majority owner with a 70% interest, decided to monetize its holdings. Over the summer, Ares opened a data room to prospective buyers, attracting interest from over 50 companies, including several major oil firms, who signed non-disclosure agreements to review the project’s data.

 

After multiple rounds of negotiations following the submission of bids in September, Ares initiated discussions for a Purchase and Sale Agreement. During this process, Ares paused drilling operations to focus on the sale, with plans to resume drilling upon the transaction’s completion.

 

This temporary delay in operations has yielded positive developments. First, the interest shown by larger operators underscores the substantial value of the Pradera Fuego field. Additionally, the possibility of a well-capitalized new operator could accelerate the drilling and development timeline. Should the sale not proceed, Ares Energy will remain the operator, a favorable outcome given its excellent track record of successfully drilling the project’s first seven wells and its strong collaboration with Royale Energy.

 

A resolution is expected soon, after which a detailed update on the timeline for resuming drilling operations will be provided.

 

Despite the temporary delay, investors in the Black Gold V project benefit from secured proven oil and natural gas reserves and the immediate availability of tax deductions upon investment.

 

Thank you and all the best,

 

Royale Team

 

 
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