Citadel Exploration is an oil and gas exploration company focused on projects in California. It has two initial projects - Project Indian, which has an unrisked potential of 100 million barrels of oil in place, and Yowlumne, where the company has leased nearly 3,000 acres near fields that have already produced over 100 million barrels of oil. Citadel plans to begin drilling additional wells at Project Indian in early 2015 after completing permitting and facilities. It also intends to permit and drill two exploration wells near Yowlumne by the end of 2015. Citadel has a simple capital structure and is led by experienced management with extensive expertise exploring for and developing oil in California.

1. Prepared for August 2014
OTCQB: COIL

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Forward Looking Statements
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This presentation contains forward-looking statements, including without limitation those statements regarding Citadel’s ability to exploit mining concessions. The statements and discussions contained in this presentation that are not historical facts constitute forward-looking statements, which can be identified by the use of forward-looking words such as "believes," "expects," "may," "intends," "anticipates," "plans," "estimates" and analogous or similar expressions intended to identify forward-looking statements. Citadel wishes to caution the reader of this presentation that these forward-looking statements and estimates as to future performance, estimates as to future valuations and other statements contained herein regarding matters that are not historical facts, are only predictions, and that actual events or results may differ materially. Citadel cannot assure or guarantee you that any future results described in this presentation will be achieved, and actual results could vary materially from those reflected in such forward- looking statements. We assume no obligation to update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this presentation, other than as may be required by applicable law or regulation. Reserve and Resource Disclosure: Securities and Exchange Commission (“SEC”) rules prohibit a publicly-reporting oil and gas company from including oil and gas resource estimates in its filings with the SEC, except proved, probable and possible reserves that meet the SEC’s definition of such terms. Estimates of non-proved and non-probable reserves included herein are not based on SEC definitions and guidelines and may not meet specific definitions of reserves or resource categories within the meaning of the SPE/SPEE/WPC Petroleum Resource Management System.

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Executive Summary
Simple Capital Structure
(OTCQB: COIL) 30.9MM shares issued (35.4 MM including vested options and warrants)
Insider Ownership ~16MM Shares
Founder & CEO: Armen Nahabedian – 4th Generation Oilman
Extensive database & knowledge provide first-mover advantage
Experienced operator with boots on the ground advantage
United States Marine 1999 – 2003; Infantry veteran of Iraq war
CFO: Phil McPherson – 11 Years as a Small Cap E&P Analyst
Noted expert on California E&P companies
Wall Street Journal “Best on the Street”; Multiple “5-Star” awards
Two Major Prospects Under Development
Project Indian: Un-risked potential 100MM Bbls in place
Yowlumne: Strategically located adjacent to hundred-million barrel fields
COIL: An Exploration & Production Company Focused on California
The Next Great California Independent

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Project Indian: Drilling January 25, 2014

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Project Indian: California Heavy Oil Background
 Heavy oil characterized as less than 18 degrees API, immobile without stimulation
 Thermal recovery (steam injection) is the primary stimulation technique
o Steam created using natural gas increases recovery by 15-50% of (OOIP)
 Invented in California in 1960 and in continuous use since
 60% of California’s daily oil production (~300,000 barrels per day) is via Thermal Recovery
The Majority of California Oil Production is Heavy

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Project Indian: Overview
Analogous to North San Ardo oilfield
oDiscovered by Chevron in 1950
oRe-discovered by CEO in 2005 with Salinas Energy
Shallow heavy oil ~11-17 degree API
100% working interest – 80% NRI
More than 100 MMBbls in place; Expect 20% - 40% recovery
688 acres under lease from OXY in San Benito County

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Project Indian: Structure Contour Map

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Project Indian: Cross Section
S N

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Project Indian: Electric Log Of Indian #1-15 Well

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PG&E Gas Transmission Line
PG&E Power
Project Indian
Indian Oil Field: Ideal Thermal Recovery Opportunity
Phase I: CAPEX $500k
 1-well pilot cyclic steam project
 469-foot well logged 100-foot oil column
 Perforated 14 feet 382-396’
 Well currently producing 5-7 bbls/pd
 11.6 gravity oil / lower viscosity
Phase II: CAPEX $4MM
 Begin Environmental Impact Report (EIR)
 Expanded 4-well pilot steam project
o Includes production and steam facilities
 Proximity to PG&E improves economics
o Electric power for pumps
o Natural gas for steam
 Multiple points of sale within 100 miles
Low natural gas prices + high oil prices = attractive thermal economics

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Project Indian: Phase II Development Timeline
Long Lead Items Next 12 months
Item
Expected Time in Months
Cost
Begin Environmental Impact Report
9-12
~$250k
Order Steam Generator
9-12
~$1.5MM
Construct Natural Gas Pipeline
6
~$250k
Heated Production Tanks
3-6
~$500k
Reverse Osmosis Water System
3-6
~$250k
Heated injection/flow lines
3
~$250k
Drill 4 Additional Vertical wells
2 days each
~$1MM
Total Cost of Phase II
~ $4MM

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Yowlumne
~3,000 gross acres leased by Citadel Exploration.
Yowlumne Area

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Yowlumne: Overview
2-26
AREA OF FOCUS
~3000 Acres gross
LANDSLIDE
Family discovered 1985
~20MM BOE recovered from 15 wells
YOWLUMNE
Discovered 1974
~100MM BOE Recovered
Currently Vintage (OXY)
Recent Activity, Prolific Production & Family Historic Success

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Vintage (OXY)
OXY
CENTURY
374M-18 2.2 miles
from 2-26
BRY
CVX
2 miles
28-12.2
8 miles from 2-26
Spud Aug 2013
318X-127
Spud 11/26
120 Acres
100% NWI
COIL 2-26
12,500’ completed well
Ready for stimulation & testing
New Exploration Near Yowlumne

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Yowlumne: Mud Log

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Yowlumne: Summary
Well 2-26 (100% WI) work-over and/or stimulation candidate in 4Q14
oEstimated CAPEX $250k
2 exploration prospects – 12,000-14,000 ft
oCitadel 80% WI and operator
oCAPEX 2014/2015: $10MM (gross)
oSeismically defined
oMajor operators active in the area
o50MM Bbls un-risked reserve potential
Permits expected 4Q14
Drilling expected 1Q15
Key Takeaways

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Investment Summary
Four Generations of California Oil Expertise
100 identified prospects generated with 2D, 3D and well control data California Renaissance Opportunity
Premium pricing vs. WTI
Increasing investment from large independents
Limited small-cap opportunity Two initial projects
Project Indian: 100MM Bbls gross in place
Yowlumne: 2,700 gross acres leased (80% working interest)
Other California opportunities under lease or evaluation Clean, simple structure
Two Employees: Experienced CEO & CFO
Chairman: Dan Szymanski, geophysicist & 15-year OXY exploration manager

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WHAT’S OLD IS NEW
Headquarters:
417 31st St. Unit A
Newport Beach, CA 92663
949-612-8040
Phil McPherson, CFO
pjm@citadelexploration.com
Geologic Office: 408 Bryant Circle Ojai, CA 93023 805-910-5369 Armen Nahabedian, CEO anahabedian@citadelexploration.com
www.citadelexploration.com
Contact