Outside of the deal megamall that as is the Permian Basin, transactions continue to flicker here and there as the overall health of the industry recuperates.

On Nov. 30, two California companies inked a definitive agreement to merge while a German-backed E&P made a move in the Williston Basin earlier this year.

Deutsche Rohstoff AG subsidiary Salt Creek Oil & Gas said in November that it intends to purchase 1,795 net mineral acres in the Bakken/Three Forks for $38.1 million. The assets include working interest in 60 gross wells and about 90 additional infill development wells.

The seller was not disclosed. Salt Creek, based in Denver, expects the transaction to generate $200 million in total revenue.

The purchase will be funded by debt and equity. Upon closing, Deutsche Rohstoff will hold a 90% interest in Salt Creek.

Tim Sulser, CEO of Salt Creek, said the acquired position will represent some of the highest-quality oil and gas development acreage in the U.S.

“We plan to use the asset to build a significant position in the Williston Basin,” he said. “Working with a diverse group of operators allows us to participate directly in rising prices and benefit from further efficiency gains.”

California Teaming

In California, Royale Energy Inc. (OTC: ROYL) said it will acquire private E&P Matrix Oil Management Corp. and some affiliates in a deal brewing since at least July.

At the time, the companies said the merger agreement would be worth a total of $41.5 million.

Royale will pay 50% in stock and assume Matrix’s $12.4 million on senior secured debt.

The company plans to issue about $20.1 million of new preferred stock to Matrix’s shareholders.

Shareholders of both companies must approve the deal.

The merger knits together a California-focused company.

In June, Matrix acquired a 50% interested in the Sansinena Field that holds proved reserves of about 12 million barrels of oil equivalent (boe), 80% oil.

At close, Jonathan Gregory will continue to serve as Royale’s CEO. Johnny Jordan, president of Matrix, will serve as president and COO.

“This transaction sets the stage for us to continue pursuing accretive acquisitions, while developing our existing properties,” Jordan said. “As a substantial shareholder of the combined company, I am confident this transaction will be transformative and enhance shareholder value.”

Darren Barbee can be reached at dbarbee@hartenergy.com.