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Royale Energy Inc. Message Board

  • edvoks edvoks May 22, 2014 12:46 PM Flag

    Rampart secured $50 million loan already

    "Rampart should strengthen in trade today after completing a landmark funding facility for its North Slope oil project in Alaska.

    Binding documents have been executed with Melody Business Finance to provide US$50 million to Rampart, which will cover a significant portion of the upfront cost of any exploration program in Alaska, including seismic and drilling.

    Notably, the deal does not result in any net debt to Rampart as the facility is leveraged off the Alaskan ACES credit system, whereby the capital provided is repaid via the Alaskan Government’s repurchase of Tax Credit Certificates issued to Rampart.

    Shareholder dilution is also avoided, and given Rampart's capitalisation of just $15 million, the facility creates substantial leverage and is somewhat of a watershed development.

    Rampart is exploring two areas of the North Slope of Alaska for both conventional and unconventional oil, inking an agreement in May 2013 to earn into leases owned by Royale Energy Inc."

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    • elchagiss May 22, 2014 2:05 PM Flag

      $7 SOON KEEP AN EYE !

    • Rampart looked a lot smarter than Royale did with this funding so easily available to Royale as well. But instead, Royale gave up 75% WI interests to Rampart for practically some leg works!

      You wonder why ROYL has never been able to make it big for over 10 years? That management team has had no heart - they have never wanted to work hard.

      ROYL is going to crash like every other time - it sold 75% WI for peanuts. Oh well, the chart tells a true story about ROYL.

      • 3 Replies to h_grant_h
      • The funny thing about that deal with Rampart was truly mind-boggling - it tells you a true story about how stupid this Royale management team has been.

        From very beginning, the funding was readily available to Royale, only if they had looked for it!

        But instead, it sold 75% WI for nothing - Rampart owners are a lot more creative and hard working. They simply sent out some documents with the help of Royale; and viola, the funding came running to them. It's just that simple.

        The worst part for Royale was that, If you look closely, once Rampart expenses reach $30 mln, Rampart would be entitled to 75% of WI, and take a free ride home. Meanwhile, Royale would be stuck with the remaining project, for a mere 25% of WI.

        So, in case of a cost overrun, which is definitely in the cards, Royale would be dead in the water - the burden of the costs over $30 mln will be all Royale's to bear. Rampart will be sitting in a nice office and enjoying the scenery.

        The Royale management team is really not the kind of people you want to bet big money with.

      • Royal bought a lot of Rampart stock, so they benefit from them doing well.

      • Royal keeps 40,000 acres, Rampart only has 37,500 so far.

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