A Californian energy firm has provisionally agreed to take over a rival in a $41.5million (£31.6million) transaction, according to media reports.
Bosses at Royale Energy said they expected the deal for Matrix Oil Corporation to go through before the end of 2016, subject to approval from regulators and shareholders.
Royale is an independent exploration and production company with its main operations in the Sacramento and San Joaquin basins in California.
Pilot Energy has reached a settlement agreement with Royale Energy following a dispute over the Western Block project in Alaska.
The company said under the terms the parties have agreed to release each other from all current and future claims relating to the disagreement.
