October 20, 2009 (FinancialWire) — Royale Energy Inc. (NASDAQ: ROYL) (Current Market Cap: $28.32 Mil.) said it has signed a definitive agreement for the private placement of around $2 million of common stock and warrants.

The company said it will sue the funds from the offering for working capital that will allow it to accelerate drilling of wells in follow up to a recent discovery.

Royale said it will start drilling the “Wylie” well this week, and will also initiate the permit process for its Vann and Magnum prospects, which it expects to begin drilling before the end of next quarter.

The terms of the agreement include the sale of 623,053 shares of common stock at $3.21 per share, and warrants which are immediately exercisable for a period of five years into 342,679 shares in the aggregate at $3.53 per share.

San Diego-based Royale Energy is an independent energy company focused on development, acquisition, exploration, and production of natural gas and oil in California, Texas and the Rocky Mountains.

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