NOTE 6 - SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 6 – SUBSEQUENT EVENTS

On July 7, 2016, Royale Energy entered into a Retirement Agreement with Harry E. Hosmer to terminate all consulting and expense reimbursements arrangements between the parties. In consideration of this agreement, Mr. Hosmer shall receive 600,000 restricted shares of Royale Energy’s common stock and a total of $25,000 in three equal payments of $8,333.33, commencing August 1, 2016.

On July 25, 2016, Royale Energy, Inc., issued a press release announcing a letter of intent to merge with privately held Matrix Oil Corporation in a combined stock and assumption of debt transaction.  The transaction is subject to completion of a definitive merger, debt exchange and debt assumption agreement, approval of the stockholders of Royale Energy and Matrix, and completion of due diligence.

On August 2, 2016, Royale Energy completed a sale of common stock, convertible notes and warrants in separate transactions in privately negotiated securities transaction.  In the first transaction, Royale Energy sold 2,392,500 Units to three investors, each Unit consisting of one share of common stock and a warrant to purchase one-fifth of a share of common stock in a privately negotiated securities transaction.  The purchase price was $0.40 per Unit for a total consideration of $957,000.  In the second transaction, Royale Energy sold to two investors, $1,580,000 principal amount of convertible promissory notes and warrants to purchase warrants to purchase three shares of common stock for every ten shares of common stock issuable upon conversion of the notes.   The conversion of the notes to shares is subject to shareholder approval.  The notes are non-interest bearing and mature one year from the date of issuance.  The funds from both transactions will be used to continue drilling activities, fund expenses to be incurred in connection with completion of Royale Energy's proposed merger with Matrix Oil Corporation and for general corporate purposes.