MIDLAND, TX--(Marketwired - May 22, 2014) - Arabella Exploration, Inc. (OTCQB: AXPLF) ("Arabella" or the "Company") today announced an update on its oil and gas operations. The Company filed its Form 20-F for fiscal year 2013 on May 15, 2014 and plans to file a Form 6-K announcing its first quarter 2014 results by June 14, 2014.
Arabella continues in its focus on drilling and operating its wells in the Southern Delaware portion of the Permian Basin in West Texas, one of the major oil producing regions in the United States. The Company remains focused on accessing and producing the high oil and liquids rich natural gas reserves in the multiple stacked pays of the Wolfcamp and Bone Springs formations of the Wolfbone Play.
According to its third party reserve report as of December 31, 2013, the Company had 2.1 million barrels of oil equivalent ("BOE") in proved reserves, up from 19,100 BOE of proved reserves the year prior. Arabella's total PV10 of proved reserves climbed to $32.8 million, as compared to $274,648 as of December 31, 2012. The PV10 of proved reserves for 2013 includes $4.5 million of proved developed producing and $28.3 million of proved undeveloped. The Jackson #1H well was classified as proved undeveloped as of the December 31, 2013 report, but is now proved developed producing.
Drilling and Production Update
With the Jackson #1H coming off of flush production, the Company is currently producing approximately 300 BOE/Day net to its interest. This amount is non-inclusive of any production from the two recently drilled wells, the Emily Bell #1H and the Woods #2H.
The Company recently completed a rework of its Graham #1H well. With the well now on gas lift, production has been steady for the last month at approximately 100-125 BOE/Day. Arabella has an approximately 15.6% working interest in this well.
Production on the Jackson #1H commenced at the end of January 2014, with IP of 875 BOE/Day. This is Arabella's sixth well and the first on its Jackson tract, where it holds an approximately 53% working interest. The well flowed back naturally until mid-April, producing between 125 - 175 BOE/Day. On April 18, 2014 the well was placed on gas lift, raising production to approximately 150 - 250 BOE/Day.
Emily Bell #1H
On February 24, 2014, the Company successfully drilled to the total depth of 14,917 feet on its Emily Bell #1H well. This is Arabella's seventh well and the first on its Emily Bell tract, where it holds an approximately 52% working interest. On May 11, 2014 the Company completed fracing the Emily Bell #1H and flowback began on May 19, 2014. The Company expects to have meaningful production results to report within the next two months.
The Company began operations on its Woods #2H well on March 5, 2014. This will be Arabella's eighth well and its second on the Woods Lease, following its Woods #1H which had a peak 24-hour IP of over 1,200 BOE/PD. The Company holds an approximately 28.5% working interest in the Woods #2H well. On May 1, 2014 the Company successfully drilled to the total depth of 14,896 on the Woods #2H. Depending on scheduling, the Company expects to complete the well in approximately 30 days.
On March 28, 2014 Arabella sold its gross 640, net 353, acres in Loving County -- otherwise known as the Johnson 44 lease. This acreage was purchased at $2,500/acre and was sold at $6,000/acre, grossing $2,119,200 with a net profit of $1,236,200, or 61%, for the Company.
On April 23, 2014 Arabella sold its gross 640, net 313, acres in Pecos County -- otherwise known as the Weatherby lease. This acreage was purchased at $1,500/acre and was sold at $2,250/acre grossing $704,250 with a net profit of $234,750, or 33%, for the Company.
Both sales were completed to allow the company to focus on its more core acreage. The Company continues to evaluate options with its less core acreage that is not part of its planned drilling schedule, and may consider future sales where the opportunity exists to net significant profits for the Company and provide funds for its existing drill plan.
Management will host a conference call and webcast on June 17, 2014 to provide updates on its operations and finances.
Date: Tuesday, June 17, 2014
Time: 11:30 AM/PM Eastern Daylight Time
US Dial-in: 1-877-407-0789
International Dial-in: 1-201-689-8562
A playback of the call will be available until 11:59 pm Eastern Time on July 1, 2014. To listen, call 1-877-870-5176 within the United States or 1-858-384-5517 when calling internationally. Please use the replay pin number 13583438.
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.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are subject to known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Statements preceded or followed by or that otherwise include the words "believes," "expects," "anticipates," "intends," "projects," "estimates," "plans," and similar expressions or future or conditional verbs such as "will", "should", "would", "may" and "could" are generally forward-looking in nature and not historical facts. Forward-looking statements in this release also include statements about business and economic trends. Investors should also consider the areas of risk described under the heading "Forward Looking Statements" and those factors captioned as "Risk Factors" in the Company's periodic reports under the Securities Exchange Act of 1934, as amended, or in connection with any forward-looking statements that may be made by the Company.
The Company also disclaims any duty to comment upon or correct information that may be contained in reports published by the investment community.