Arabella Exploration, Inc. ("Arabella" or the "Company"), an oil and gas E&P company focused on the Southern Delaware portion of the Permian Basin, today announced that it has acquired additional working interests in its properties from existing working interest holders.
Over a series of five separate transactions, the Company acquired approximately 420 net acres and approximately 350,000 barrels of oil equivalent in proved reserves. These reserves are worth in excess of $6.0 million of proved PV10, including approximately $3.5 million of proved developed producing PV10. Across the five transactions, the Company will pay, in the aggregate, approximately $2.2 million and issue 112,250 of its ordinary shares. The Company will be entitled to production and revenue from the acquired working interests beginning from the effective date of November 1, 2014.
"We are excited to have this opportunity," stated Jason Hoisager, CEO of Arabella, "we are firm believers in the value of the Southern Delaware Basin and our land in particular. We are excited to have the opportunity to acquire a greater interest in our wells and leases on what should be accretive terms, and will continue to do so in the future where possible."
With this purchase, the Company will acquire interests in all of its producing wells, Locker State #1H (18.0%), Graham #1H (18.0%), Woods #1H (10.0%), Vastar State #1V (5.0%), Jackson #1H (7.1%) and Emily Bell #1H (1.5%), as well as the drilled, but yet to be completed, Woods #2H (4.5%) and the completed, but currently being re-worked, SM Prewitt #1H (18.0%). Additionally, Arabella will acquire 18.0% of all of the remaining undrilled interests in the SM Prewitt, Locker State and Graham leases, 16.5% of the undrilled Johnson 103 and 138 leases, 10.0% of the Woods #3H location as well as 5.0% of all of the other remaining undrilled interests in the Woods, Vastar State, Jackson and Emily Bell leases.
About Arabella Exploration
Arabella Exploration, Inc. (OTCQB: AXPLF) is an independent oil and natural gas company focused on the acquisition, development and exploration of unconventional, long life, onshore oil and natural gas reserves in the Southern Delaware Basin in West Texas. The Company has an experienced management team with experience drilling multi-lateral wells and is primarily focused on the formations that the industry refers to as the Wolfbone play, which includes the Wolfcamp and Bone Spring shales. The Wolfbone play is characterized by high oil content and liquids rich natural gas, multiple vertical and horizontal target horizons, extensive production history, long-lived reserves and high drilling success rates.