Exploration & Production | Drilling / Well Results

Arabella Making Progress at Permian Wolfbone Wells

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Arabella Exploration Inc. has reported an update on its oil and gas operations.

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.

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.

Graham #1H

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.

Jackson #1H

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.

Woods #2H

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.

Reserves Update

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.

Land Sales

On March 28, 2014 Arabella sold its gross 640, net 353, acres in Loving County.

On April 23, 2014 Arabella sold its gross 640, net 313, acres in Pecos County.

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.