Royale Energy Inc (NASDAQ:ROYL) today announced that it will
commence an exchange offer for a minimum of 48% and a maximum of 55% of
the outstanding shares of common stock of Aspen Exploration, Inc. (OTC
Bulletin Board: ASPN.OB). The exchange ratio will be one share of Royale
common stock for every 2.75 shares of Aspen common stock.
On November 19, 2008, the closing price of a share of Royale common
stock was $2.75 and the closing price of a share of Aspen common stock
was $1.02. Based on these closing prices, the exchange ratio for the
offer represents a value of $1.00 per share of Aspen common stock.
The exchange offer will be conditioned upon, among other things, a
registration statement for the issuance of Royale shares in the exchange
offer being declared effective by the Securities and Exchange
Commission; at least 48% of Aspen’s shares being validly tendered in the
exchange offer and not withdrawn; the expiration or termination of any
waiting periods under applicable antitrust laws; receipt of any required
consents under the terms of Aspen’s debt agreements, and listing of the
Royale stock to be issued in the exchange on NASDAQ. The complete terms
and conditions of the exchange offer will be set forth in the
registration statement and other offering documents to be filed by
Royale with the Securities and Exchange Commission.
This press release is for informational purposes only and is neither an
offer to sell nor a solicitation of an offer to buy any securities. Any
exchange offer will be made only through a registration statement and
related materials. In connection with the exchange offer, Royale will
file a registration statement on Form S-4 (containing a prospectus) with
the Securities and Exchange Commission. Investors and stockholders of
Aspen are advised to read this registration statement and other
disclosure materials, when they become available, carefully because they
will contain important information about Royale, Aspen and the exchange
offer. Investors and stockholders of Aspen may obtain a free copy of the
disclosure materials and other documents to be filed by Royale with the
Securities and Exchange Commission at the SEC’s website, www.sec.gov.
A free copy of the disclosure materials and other documents of Royale
may also be obtained from Royale by requesting them from the Director of
Marketing and PR, Royale Energy, Inc., 7676 Hazard Center Drive, Suite
1500, San Diego, California 92108 (telephone 619-881-2800).
About Royale Energy
Headquartered in San Diego, Royale Energy, Inc. is an independent energy
company. The company is focused on development, acquisition,
exploration, and production of natural gas and oil in California, Texas
and the Rocky Mountains. It has been a leading independent producer of
oil and natural gas for over 20 years. The company's strength is
continually reaffirmed by investors who participate in funding over 50%
of the company's new projects. Additional information about Royale
Energy, Inc. is available on its web site at www.royl.com.
Forward Looking Statements
In addition to historical information contained herein, this news
release contains "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995, subject to various
risks and uncertainties that could cause the company's actual results to
differ materially from those in the "forward-looking" statements. While
the company believes its forward looking statements are based upon
reasonable assumptions, there are factors that are difficult to predict
and that are influenced by economic and other conditions beyond the
company's control. Investors are directed to consider such risks and
other uncertainties discussed in documents filed by the company with the
Securities and Exchange Commission.
Royale Energy, Inc.
Chanda Idano
Director of Marketing & PR
619-881-2800
chanda@royl.com
http://www.royl.com
