Arabella Exploration, Inc. 
OTCQB: AXPLF, AXLWF 
The Pure Play 
Southern Delaware Basin 
E&P Opportunity
2 
ARABELLA EXPLORATION 
Safe Harbor Statement 
Thisdocumentshallnotconstrueanoffertosellorthesolicitationofanoffertobuyse...
3 
ARABELLA EXPLORATION 
About Arabella Exploration 
OTCQB: AXPLF 
Share Price (8/15/14) 
$8.25 
Market Cap (8/15/14) 
$41...
Business
5 
ARABELLA EXPLORATION 
About The Delaware Basin 
ArabellaoperatesintheSouthernDelawareBasinportionofthePermianBasininWe...
6 
ARABELLA EXPLORATION 
Arabella Overview 
Arabellaisanoilandnaturalgascompanyfocusedontheacquisition,developmentandexpl...
7 
ARABELLA EXPLORATION 
Arabella Overview 
CurrentArabella Positions 
Drilled Wells 
7 
Wells Completing 
1 
Wells Drilli...
8 
ARABELLA EXPLORATION 
Arabella’s Existing Wells and Drilling Plan 
Well 
Working Interest (%) 
Lateral Length (ft) 
Com...
9 
ARABELLA EXPLORATION 
Arabella’s Acreage Position 
Arabella’spositionislocatedintheheartoftheover-pressured,stackedpay...
10 
ARABELLA EXPLORATION 
Arabella’s Production Expertise 
Arabella’sdrillingteamusestechnologytomaximizetheefficiencyofo...
11 
ARABELLA EXPLORATION 
Dual Lateral Well Economics 
Wolfcamp A 
Bone Spring 
Avalon Shale 
Wolfcamp B 
Wolfcamp C 
Wolf...
Financial
13 
ARABELLA EXPLORATION 
Growth to Date 
December31, 2012 
August 31,2012 
December31, 2013 
June 15,2014 
Proved Reserve...
14 
ARABELLA EXPLORATION 
Estimated Next Year Production -Base Case -One Rig 
0 
500 
1,000 
1,500 
2,000 
2,500 
3,000 
J...
15 
ARABELLA EXPLORATION 
Milestones/Catalysts 
During2013Arabellasuccessfullydrilledandcompleteditsfirstfourwellsincludi...
Management
17 
ARABELLA EXPLORATION 
Arabella Management Team 
Mr.HoisageristhefounderandChiefExecutiveOfficerofArabellaExploration,...
18 
ARABELLA EXPLORATION 
Arabella Management Team (cont.) 
Mr.MastersonistheHeadGeologistatArabellawhereheaidsinacquirin...
19 
ARABELLA EXPLORATION 
Mr.BushisapartneratSt.AugustineCapitalPartners,LLC,aFortWorth-basedinvestmentfirmfocusedonoilan...
20 
ARABELLA EXPLORATION 
Mr.BakaycurrentlyisthePresidentandChiefExecutiveOfficerandservesontheboardofdirectorsofKonaGril...
21 
ARABELLA EXPLORATION 
Mr.HeynistheChiefExecutiveOfficerofTritaurianCapital,Incorporated,aFINRAregisteredbroker-dealer...
22 
ARABELLA EXPLORATION 
Contact Information 
Phone 
Email 
Company 
William B. Heyn 
(432) 279-0790 
william.heyn@arabel...
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AXPLF Arabella Exploration Investor Presentation

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AXPLF Arabella Exploration Investor Presentation

  1. 1. Arabella Exploration, Inc. OTCQB: AXPLF, AXLWF The Pure Play Southern Delaware Basin E&P Opportunity
  2. 2. 2 ARABELLA EXPLORATION Safe Harbor Statement ThisdocumentshallnotconstrueanoffertosellorthesolicitationofanoffertobuysecuritiesofArabellaExploration,Inc. (“Arabella”orthe“Company”) Forward-LookingStatements Thispresentationcontains“forward-lookingstatements”withinthemeaningoftheSecuritiesActof1933,asamended,theSecuritiesExchangeActof1934,asamended,andthePrivateSecuritiesLitigationReformActof1995,whichareintendedtobecoveredbythesafeharborcreatedthereby.Youcanidentifyforward-lookingstatementsbywordssuchas“anticipates,” “expects,”“intends,”“plans,”“projects,”“believes,”“estimates,”andsimilarexpressions.Specifically,statementsregardingArabella’sfuturebusiness,includinganyrevenueprojections,costs,earningsorotherfinancialitems,aswellasstatementsrelatingtotheobjectivesofmanagementandotherbusinessplans,includinganticipatednewproductsandinvestments,areforwardlookingstatements.Theseforward-lookingstatementsarenotguaranteesoffutureperformancebutareratherbaseduponmanagement'scurrentexpectationsandassumptionsastofutureeventsthatmaynotprovetobeaccurate.Actualresultsmaydiffermateriallyfromthoseprojectedasaresultofcertainrisksanduncertainties,includingbutnotlimitedto:thegrowthofthemarketsaddressedbyourproducts;thedemandforandmarketacceptanceofourproducts;ourabilitytosuccessfullycompeteinthemarketsinwhichwedobusiness;ourabilitytosuccessfullyaddressthecoststructureofourproducts;theabilitytodevelopandimplementnewtechnologies;andourabilitytorealizefinancialandstrategicbenefitsofpastandfuturetransactions.Otherfactorsthatcouldcauseactualresultstodiffermateriallyfromthosedescribedintheforward-lookingstatementsincludeothereconomic,business,competitiveand/orregulatoryfactorsaffectingArabella’sbusinessgenerally.Theserisksanduncertainties,andothers,thatrelatetoArabella’sbusinessandfinancialconditionaredetailedfromtimetotimeinArabella’sSecuritiesandExchangeCommissionfilings.Theseforward-lookingstatementsaremadeonlyasofthedateindicated, andArabelladisclaimsanyobligationtoupdateorrevisetheinformationcontainedinanyforward-lookingstatements,whetherasaresultofnewinformation,futureeventsorotherwise.
  3. 3. 3 ARABELLA EXPLORATION About Arabella Exploration OTCQB: AXPLF Share Price (8/15/14) $8.25 Market Cap (8/15/14) $41.4mm Float 0.7mm Insider Ownership(1) 4.3mm Common Shares Outstanding(1) 5.0mm Warrants (OTCQB: AXLWF) 10.7mm Debt $4.3mm (1)Excludes 1,705,002 shares held in escrow pending the achievement of certain performance targets.
  4. 4. Business
  5. 5. 5 ARABELLA EXPLORATION About The Delaware Basin ArabellaoperatesintheSouthernDelawareBasinportionofthePermianBasininWestTexas,whichisoneofthemajoroilproducingregionsintheUnitedStates TheBoneSpringandWolfcampformationsintheSouthernDelawareBasin,knownastheWolfbonePlay,havethousandsoffeetofstacked,multiplepayzones TheWolfbonePlaywhichischaracterizedby: Highoilcontentandliquidsrich,highBTUnaturalgas Multipleverticalandhorizontaltargethorizons Extensiveproductionhistory Long-livedreserves Highdrillingsuccessrates ManyformationsintheDelawareBasinareover-pressured
  6. 6. 6 ARABELLA EXPLORATION Arabella Overview Arabellaisanoilandnaturalgascompanyfocusedontheacquisition,developmentandexplorationofunconventional,longlife,onshoreoilandnaturalgasreservesintheSouthernDelawareBasininWestTexas Arabella’smanagementteamhasdeepexpertiseinoilandgasexploration: DeeplocallandknowledgeintheBasin Recognizedexpertiseinthegeologyoftheplay Highlytechnical,highpressure,complexhorizontalandmulti-lateraldrilling Cuttingedgeexperienceandskillsinthedrillingofdual-lateralwellsinthePermian Arabella’sacreageanddrillingcoversmulti-payhorizontaldevelopmentinSouthernDelawareBasin OverlappingBoneSpringandWolfcampshales(Wolfbone)withmultiplepotentialpayzonesperwell Existenceof“over-pressured”formationscreatingmoreeffectiveoilextraction
  7. 7. 7 ARABELLA EXPLORATION Arabella Overview CurrentArabella Positions Drilled Wells 7 Wells Completing 1 Wells Drilling 1 County Gross Acres Net Acres Reeves 8,332 3,810 Ward 640 356 Total 8,972 4,166 Other Operators Arabella’sacreageisinwhatitconsiderstobetheheartoftheWolfbonePlay
  8. 8. 8 ARABELLA EXPLORATION Arabella’s Existing Wells and Drilling Plan Well Working Interest (%) Lateral Length (ft) Completed Formation Peak Rate 24-hour (BOE/day) Peak Rate 30-day (BOE/day) Percent Oil EUR (BOE) SM Prewitt #1H -1stLateral -2ndLateral 17.5500 17.5500 4,000 4,000 Wolfcamp C Wolfcamp A 283 146 89% 100,000 Locker State #1H 17.5500 4,000 Wolfcamp D 350 109 85% 186,000 Graham #1H 18.5500 4,000 Wolfcamp D 634 383 83% 250,000 Woods #1H 23.2563 4,000 Wolfcamp B 1,221 634 87% 600,000 Vastar State #1V 57.1375 Vertical Wolfcamp E Jackson #1H 55.1647 4,000 Wolfcamp B 875 402 82% 530,000 Emily Bell #1H 54.0000 4,000 Wolfcamp A 1,125 482 85% TBD Woods #2H 34.1438 4,000 Wolfcamp B Emily Bell #2H 54.0000 Vastar State #1H 57.1375 Jackson #2H 53.0000 Emily Bell #3H 54.0000 Woods #3H 23.2563 Jackson #3H 55.1647 Emily Bell #4H 54.0000 Woods #4H 34.1438 Jackson #4H 53.0000 Total Depth on May 1, 2014 -Completing Class 5 Dual Lateral –Drilled but not completed Producing or Completing Drilling Schedule Preparing for horizontal re-entry
  9. 9. 9 ARABELLA EXPLORATION Arabella’s Acreage Position Arabella’spositionislocatedintheheartoftheover-pressured,stackedpaysoftheDelawareBasin–withthepotentialforhighliquidsproducingwellsoutofmultiplepayzones
  10. 10. 10 ARABELLA EXPLORATION Arabella’s Production Expertise Arabella’sdrillingteamusestechnologytomaximizetheefficiencyofoilrecoveryincluding: Drillingmulti-lateralwells,eitherinstagesorgrassroots Reenteringverticalwellstoaddlaterallegs Byusingadvanceddrillingmethods,Arabellacanmaximizeoilproducedatlowercostsperbarrel Secondary Drilling Primary Drilling Acquired Well Drilling Lateral Well Vertical Test Well Staged Multi- Lateral Well Reenter For Multi- Laterals Reenter For Lateral Grass Roots Multi- Lateral Well Make Acquired Vertical a Lateral Make Acquired Lateral a Multi- Lateral
  11. 11. 11 ARABELLA EXPLORATION Dual Lateral Well Economics Wolfcamp A Bone Spring Avalon Shale Wolfcamp B Wolfcamp C Wolfcamp D Wolfcamp E Penn Shales Vertical Well Horizontal Well Dual Lateral Horizontal Well Illustrative Well Economics(1) Vertical Well Single Lateral HorizontalWell Dual Lateral HorizontalWell Well Cost $4.0mm $7.5mm $10.0mm EUR 250 MBOE 800 MBOE 1,600 MBOE Cost to Develop $16.00/ BOE $9.38/ BOE $6.25/ BOE Justashorizontalwellsoffersignificantlymoreefficientoilproductionthanvertical, multi-lateralisthenextadvanceincosteffectiveoilproduction Effectively,Arabellaisabletodrillasecond, entirelynewlateralwelloffofthealreadysunkcostoftheoriginalvertical (1)Illustrative Well Economics are Company estimates based on a theoretical well of each type drilled the Delaware Basin
  12. 12. Financial
  13. 13. 13 ARABELLA EXPLORATION Growth to Date December31, 2012 August 31,2012 December31, 2013 June 15,2014 Proved Reserves(1) (BOE) December31, 2012 August 31,2012 December31, 2013 June 15,2014 PV10 Proved Reserves(1) ($) December31, 2012 August 31,2012 December31, 2013 June 15,2014 Production(2) (BOE/Day) 19,100 618,618 2,073,289 $274,648 $9,310,700 $32,792,422 0 106 300 Notes:(1)June 15, 2014 numbers based Williamson reserve report (2)Estimated production numbers as of June 15, 2014 2,618,426 $46,134,395 615 PDP increased from $4.5mm on December 31, 2013 to $15.3mm on June 15, 2014
  14. 14. 14 ARABELLA EXPLORATION Estimated Next Year Production -Base Case -One Rig 0 500 1,000 1,500 2,000 2,500 3,000 Jackson #4H Emily Bell #4H Jackson #3H Woods #4H Jackson #3H Woods #3H Emily Bell #3H Jackson #2H Emily Bell #2H Vastar State #1H Woods #2H Emily Bell #1H Jackson #1H 2013 Wells Estimated BOE/Day Basedonaprojecteddrillscheduleandtypicalwellcurves,Arabellashouldshowsignificantgrowthinproductionforthebalanceof2014andbeyond Note: Based on projected drill schedule and standard type curve, subject to change based on drill schedules and well performance
  15. 15. 15 ARABELLA EXPLORATION Milestones/Catalysts During2013ArabellasuccessfullydrilledandcompleteditsfirstfourwellsincludingtheWoods#1Hwellwhichhadan24hourpeakIPofover1,200BOE/Day GoingpubliceventinDecember24,2013,followedbynameandtickersymbolchange CompletedtheVastar#1VandJackson#1HinJanuary2014andtheEmilyBells#1Hwellwithaninitial24hourpeakIPrateofover1,100BOE/DayinMay2014 SuccessfullyfinisheddrillingtheWoods#2Hwhichiscurrentlywaitingonitsfracjob OnJune26,2014ourChiefExecutiveOfficerJasonHoisagerpurchased190,477ofourordinarysharesfor$10.50ashareinaprivatetransactionfromArabella Milestones Catalysts CompletionoftheWoods#2H Horizontalre-entryandre-completionoftheVastarState#1 DrillingoftheWoods#3H,Jackson#2HandEmilyBell#2Hand#3H Raisingadditionaldrillingandexpansioncapital Meeting2014performancetargetofdoublingprovedreservesovertheyear
  16. 16. Management
  17. 17. 17 ARABELLA EXPLORATION Arabella Management Team Mr.HoisageristhefounderandChiefExecutiveOfficerofArabellaExploration,Inc.acompanyheestablishedin2008andwhichisactivelyacquiringanddevelopingassetsintheDelawareBasinofWestTexas.Heisresponsibleforassetacquisition,businessplanningandtheoverallmanagementoftheCompany. Mr.HoisagerisalsothefounderandPresidentofArabellaPetroleumCompany,LLC,whichcurrentlyistheoperatorforArabella’sproperties. PriortoArabella,Mr.Hoisagerservedasanindependentlandmanandwasinstrumentalinplanningstrategiclandpurchases,identifyinginvestmentpartners,acquiringleasesandmarketingtooperatorsseekingentryintotheresourceplaysofNorthandWestTexas. Mr.HoisagerattendedTexasTechUniversitywherehestudiedFinanceandAccountinganddiscoveredhisinterestintheoilandgasindustry. Jason Hoisager –Chief Executive Officer and Director Mr.SanfordhasbeentheChiefFinancialOfficerforArabellaExploration,Inc.sinceNovember2013andhasbeenactingCFOsinceAugust2013.Mr.SanfordmanagestheAccounting,FinanceandInvestorRelationsdepartments. Mr.SanfordworkedforCarriageServices,Inc.(NYSE:CSV)from1997to2012wherehehadsubstantialexperienceinpubliccompanyfinancialreporting,investorrelationsandmergersandacquisitions.Mr.Sanford’slastpositionatCarriageServices,Inc.wasExecutiveVicePresident,ChiefFinancialOfficerandChiefAccountingOfficer. Mr.SanfordwasChiefFinancialOfficerforAutomationTechnology,Inc.in2013,wastheChiefFinancialOfficerforEnduroSystems,Inc.from1996to1997andtheCorporateControllerforPetrolon,Inc.from1992to1995.Mr.Sanfordworkedinpublicaccountingfrom1982to1992,includingPricewaterhouseCoopers,intheauditdepartmentwhereheservedvariouscompaniesintheoilandgasindustries. Mr.SanfordisasCPAandhasabachelor’sdegreeinAccountingfromSamHoustonStateUniversityandaMBAinFinancefromtheUniversityofHouston.Mr.SanfordiscurrentlyontheBoardofDirectorsoftheHouston,TexasChapterofFinancialExecutivesInternationalandpreviouslyservedasthePresidentoftheChapter. Terry E. Sanford –Chief Financial Officer
  18. 18. 18 ARABELLA EXPLORATION Arabella Management Team (cont.) Mr.MastersonistheHeadGeologistatArabellawhereheaidsinacquiringdesirableacreage,monitoringlocaldrillinginformationandresultsandcollaborateswiththeArabelladrillingengineersinthelocation,drillingandcompletionofwells–includingthedrillingandcompletionbasedongeologytomaximizeofwellpayzones PriortojoiningArabella,Mr.MastersonwasanindependentconsultingspecializinginthePermianBasinandthe‘WolfbonePlay”inparticular.HisworkincludedreportsformajoroilcompaniessuchasEagleOilandGas,AtlanticOperating,TROXandTwoBlackBear,Inc. Duringhistimeasaindependentconsultant,Mr.MastersonwasinstrumentalinthedevelopmentoftheWolfbonePlayanditsensuingcommercialdevelopment. Previously,Mr.MastersonhasspenttwentyyearsinthefieldandworkedasVicePresidentofAcquisitionsandExplorationatSouthwestRoyaltiesandasageologistatGrandBanksEnergy,MonsantoandTexaco. Richard Masterson –Head Geologist
  19. 19. 19 ARABELLA EXPLORATION Mr.BushisapartneratSt.AugustineCapitalPartners,LLC,aFortWorth-basedinvestmentfirmfocusedonoilandgastransactionsandconsultingforprivatebusinesses. Previously,Mr.Bushco-foundedPennybackerCapital,LLC,arealestateprivateequityfirm,workedatAkinGumpStraussHauer&FeldLLPasacorporateattorneyandclerkedforU.S.DistrictJudgeSidneyAllenFitzwater. Mr.Bushhasservedonnumerouspoliticalcampaigns,foundedtheHispanicRepublicansofTexasandisthepastnationalco-chairofMaverickPAC. In2006Mr.BushjoinedtheU.S.NavalReservesthroughtheprestigiousDirectCommissionOfficerprogram.In2010,hebegananeight-monthtourofdutyinAfghanistaninsupportofOperationEnduringFreedomundertheSpecialOperationsCommand. Mr.BushreceivedhisundergraduatedegreefromRiceUniversityandhisJurisDoctoratefromtheUniversityofTexasSchoolofLaw. George P. Bush Arabella Board of Directors Malachi O. Boyuls Mr.BoyulsisapartneratSt.AugustineCapitalPartners,LLC,aFortWorth-basedinvestmentfirmfocusedonoilandgastransactionsandconsultingforprivatebusinesses. Previously,Mr.BoyulsworkedasGeneralCounselforThomasTitle&EscrowandasanattorneyatGibson,Dunn,& Crutcher,LLP. Mr.BoyulsclerkedforFederalDistrictCourtJudgeDavidC.GodbeyandFederalAppealsCourtJudgeHarrisLHartzandwasajudicialinternforcurrentSupremeCourtJusticeSamuelA.Alito,Jr.ontheThirdCircuitCourtofAppeals. Mr.BoyulshasbeenappointedasaNextGenerationFellowandaMemberoftheTexasAppraiserLicensingAndCertificationBoard Mr.BoyulsreceivedhisundergraduatedegreefromtheUniversityofMaryHardin-BaylorandhisJurisDoctoratefromtheNewYorkUniversitySchoolofLaw.
  20. 20. 20 ARABELLA EXPLORATION Mr.BakaycurrentlyisthePresidentandChiefExecutiveOfficerandservesontheboardofdirectorsofKonaGrill,Inc. (NASDAQ:KONA),anAmericangrillandsushibar. Mr. Bakay founded BBS Capital Management, LP, a Texas limited partnership that serves as the investment manager to the BBS Capital Fund, LP, in January 2008 and has served as its managing member since its formation. Prior to forming BBS Capital Management, LP, Mr. Bakay was the co-founder and co-portfolio manager of Patara Capital, L.P., an investment management firm based in Dallas, Texas from January 2006 through December 2007. From May 2005 through January 2006, Mr. Bakay was an equity analyst at Southwest Securities, Inc., a subsidiary of SWS Group, Inc. (NYSE: SWS), a financial services company, where he covered the specialty retail industry. Mr. Bakay graduated from Boston College, Carroll School of Management with a Bachelor of Science in finance and from Boston College, Carroll School of Management with a Master of Science in Finance. Berke Bakay Arabella Board of Directors (cont.) Mr.HauserhasservedasadirectorofKonaGrill,Inc.(NASDAQ:KONA)sinceDecember2004. Mr.HauserservesasthePresidentandownerofCapitalRealEstate,Inc.,acommercialrealestatedevelopmentcompanybasedinMinneapolis,Minnesota,whichhefoundedin2001. Mr.Hauser’scommercialrealestateactivitieshaveconsistedoftheconstructionand/ordevelopmentofatleast300projectswithvalueinexcessof$1.45billion. Inaddition,Mr.HauseristheManagerandownerofNetLeaseDevelopment,LLC,whichisacontrolledoperatingcompanyunderCapitalRealEstate,Inc.,aswellasamemberandmanagingpartnerofseveralotherpartnershipsformedforrealestateandrelatedventures. PriortofoundingCapitalRealEstate,Inc.andNetLeaseDevelopment,LLC,Mr.HauserservedasapartnerwithRelianceDevelopmentCompany,LLCfrom1992to2001,wherehewasresponsibleforthemanagement,development, andsaleofretailproperties. Richard J. Hauser
  21. 21. 21 ARABELLA EXPLORATION Mr.HeynistheChiefExecutiveOfficerofTritaurianCapital,Incorporated,aFINRAregisteredbroker-dealer.From2001tothepresent,Mr.HeynhasbeenwithwithTritaurianCapital,Incorporated,anditspredecessorcompanies. Priorto2001,Mr.HeynheldvariousinvestmentbankingpositionsinthefinancialindustryincludingintheInvestmentBankingDivisionofMerrillLynch,theMergersandAcquisitionsGroupofJ.P.MorganandtheCorporateFinanceDepartmentofMorganStanley. Mr.HeynwasanadvisortoCSChinaAcquisitionCorp.,aSpecifiedPurposeAcquisitionCorporationthatsubsequentlymergedwithatargetinChinatoformAsiaEntertainment&ResourcesLtd.,whichbecameIaoKunGroupHoldingCompanylistedontheNASDAQStockMarket(NASDAQ:IKGH). Mr.HeynwasanadvisortoChinaUnistoneAcquisitionCorp.,aSpecifiedPurposeAcquisitionCorporationthatsubsequentlymergedwithatargetinChinatoformYuchengTechnologiesLimited,whichwaslistedontheNasdaqCapitalMarket(NASDAQ:YTEC)untilbeingtakenprivate. Mr.HeynreceivedaB.A.fromYaleUniversitywithmajorsinhistoryandpoliticalscienceandcurrentlyholdsSeries7,24,63,79and99securitieslicenses. William B. Heyn Arabella Board of Directors (cont.)
  22. 22. 22 ARABELLA EXPLORATION Contact Information Phone Email Company William B. Heyn (432) 279-0790 william.heyn@arabellaexploration.com Investor Relations DerekGradwell (512) 270-6990 dgradwell@mzgroup.us www.arabellaexploration.com 500 W. Texas Avenue Suite 1450 Midland, Texas 79701 Telephone: (432) 897-4755
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