Royale Prepares to Meet Capital Funding, Drilling Schedules
Royale Energy has received regulatory approval to build drilling locations for its scheduled third quarter wells. Having weathered the trying times for the industry this year, the company is actively working toward the drilling of several new developmental wells designed to add production before the winter heating season begins.
Receipt of this important approval marks one of the key requirements necessary to begin drilling. To meet the capital requirements for this drilling, the company has requested approval of an S3 registration with the Securities and Exchange Commission (SEC) on April 22, 2009. This registration is also a part of the company’s plan for compliance with NASDAQ's Net Stockholders Equity requirement, noted on April 1, 2009.
On Monday, NASDAQ staff issued a determination that the company had not yet completed the plan filed on April 16, 2009. The staff determination was not permitted to take into account the SEC time table for approval of the S3. As a result, pursuant to NASDAQ rule 5800, the company will request a hearing seeking to afford it the time to receive SEC approval. Royale is confident that the panel will understand the need for SEC approval, allowing the company to meet its requirements and commence drilling.