El Cajon-based Royale Energy Inc. (Nasdaq: ROYL) announced it has reached an agreement with a major independent exploration and production company to develop 1,300 acres in the Sacramento Basin Grimes Field.
This agreement allows Royale to drill up to three wells targeting a 3-D seismically defined amplitude. The seismic event is clearly correlated to the nearby productive natural gas horizon and shows a sizable target with multiple well follow-up potential.
Royale President Stephen Hosmer said he is pleased to enter into the first of what it believes to be a series of development opportunities with an industry participant of this caliber.
“I am excited to have the opportunity to establish a relationship of this nature, and look forward to the reserve and production growth for both of our companies,” Hosmer said.