Now this is how it’s supposed to work. Royale Energy (NASDAQ:ROYL) has initiated an exchange offer for up to 55% of the outstanding shares of an OTC bulletin board energy company called Aspen Energy (OTC.BB:ASPN). There are about 7.26 million shares of Aspen stock outstanding, so Royale is looking to pick up control of the company for about $4 million.
Aspen holds 130,000 barrels of proved crude oil reserves and 2.7million cubic feet of proved natural gas reserves. That’s about 600,000barrels of oil equivalent. Royale is offering $1/share for about halfof that. That’s 300,000 boe for about $13/b.
That’s a good deal for Royale, which has seen it’s share price dropfrom a 52-week high of $14.70 to close yesterday at $2.31, a drop ofnearly 85%.
November 21, 2008