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AXPLF, Arabella Exploration Oil and Gas Investor Article One on One

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Derek Gradwell
Derek Gradwell

Arabella Exploration is a pure-play company focused on developing assets in the Delaware Basin region of West Texas. The company's strategy is to drill low-risk locations to increase its daily oil and gas production as quickly as possible. High oil prices have benefited Arabella as it produces premium-priced natural gas. For 2014, Arabella plans to double its efforts by drilling at least 10 new wells and allocating over $30 million, up from the 5 wells drilled in 2013. The company believes it can reduce well costs by over 20% this year by refining its techniques and leveraging existing infrastructure.

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Energy Companies To Watch A SPECIAL REPORT FROM THE PUBLISHER OFSPRING 2014 ONEONONE
Describe the strategy that drives the company, and how you will implement it this year. Our strategy is to drill our lowest risk locations and increase our net barrels of oil equivalent per day (BOEPD) as much and as quickly as possible. How have high oil prices and low gas prices af- fected your business? We get all of the benefit of the commodity environ- ment for oil with little downside risk from low gas prices as we produce very high Btu gas that sells for a premium, recently as high as $7 per thousand cubic feet (Mcf). Will you expand into any new basins or plays? Why or why not? Not at this time. We are currently the only public pure-play Southern Delaware Basin company and we are focusing right now on our core asset area where we can exercise the highest expertise. Which projects will yield the best return for the company this year? Horizontal Wolfcamp drilling, because the return on investment is highest. Given the productivity of the targets on our current drilling plan, we should see excellent returns. In addition, with our technical abil- ities, we will evaluate well re-entries for sin- gle and multilateral completions, allowing us to increase returns on existing wells. What is your projected budget for the cur- rent year and how does it compare to prior years? What are the primary drivers? For 2014 we will be doubling our efforts. We drilled five wells in 2013 and plans for this year are to drill at least 10 new wells with more than $30 million to be deployed. Are you constrained by midstream capacity? No, that is one of the benefits of operating in an established basin. There is existing infrastructure from past development and so we can access new reservoirs with existing midstream capacity largely in place. ARABELLA EXPLORATION INC. OTCQB: AXPLF | ARABELLAEXPLORATION.COM JASON HOISAGER is the CEO of Arabella Exploration Inc., a company that is actively acquiring and developing assets in the Delaware Basin of West Texas. Prior to Arabella, Hoisager was an independent landman planning strategic land purchases, identifying investment partners, acquiring leases and marketing to operators seeking entry into the resource plays of North and West Texas. He attended Texas Tech University, where he studied finance and accounting. Oil and Gas Investor | OneOnOne: Energy Companies to Watch | Spring 2014 Abrabella Exploration is a pure-play Delaware Basin-focused company with all acreage in the oil fairway of the Wolfbone play.
Do you foresee any acquisitions this year? Perhaps we will consider growth through new lease- holds in areas that complement our existing assets and build on our knowledge base and expertise in the play. What are you experiencing regarding well costs now that your drilling plans are ramping? With the refinement of our drilling techniques and ability to take advantage of existing infrastructure, we believe we can reduce our overall well cost this year by more than 20%. What is the greatest challenge you face this year? Like many of our peers, our biggest challenge is having access to capital to take advantage of opportunities. What is the one thing you want investors to know? We have a very strong operational team with superior technical expertise, experienced senior management and a strong board that provides knowledge and guidance. By adding those key components to an asset base that we see as the best developing basin growth opportunity in the U.S. today, we are focused on driving share- holder value. IR Contact: Derek Gradwell. 512-270-6990. dgradwell@mzgroup.us Arabella’s position is in the heart of the overpressured, stacked pays of the Delaware Basin with the potential for high- liquids-producing wells out of multiple pay zones. © Hart Energy | 1616 S. Voss, Ste. 1000, Houston, TX 77057 USA | +1.713.260.6400 | Fax +1.713.840.8585
AXPLF, Arabella Exploration Oil and Gas Investor Article One on One

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AXPLF, Arabella Exploration Oil and Gas Investor Article One on One

  • 1. Energy Companies To Watch A SPECIAL REPORT FROM THE PUBLISHER OFSPRING 2014 ONEONONE
  • 2. Describe the strategy that drives the company, and how you will implement it this year. Our strategy is to drill our lowest risk locations and increase our net barrels of oil equivalent per day (BOEPD) as much and as quickly as possible. How have high oil prices and low gas prices af- fected your business? We get all of the benefit of the commodity environ- ment for oil with little downside risk from low gas prices as we produce very high Btu gas that sells for a premium, recently as high as $7 per thousand cubic feet (Mcf). Will you expand into any new basins or plays? Why or why not? Not at this time. We are currently the only public pure-play Southern Delaware Basin company and we are focusing right now on our core asset area where we can exercise the highest expertise. Which projects will yield the best return for the company this year? Horizontal Wolfcamp drilling, because the return on investment is highest. Given the productivity of the targets on our current drilling plan, we should see excellent returns. In addition, with our technical abil- ities, we will evaluate well re-entries for sin- gle and multilateral completions, allowing us to increase returns on existing wells. What is your projected budget for the cur- rent year and how does it compare to prior years? What are the primary drivers? For 2014 we will be doubling our efforts. We drilled five wells in 2013 and plans for this year are to drill at least 10 new wells with more than $30 million to be deployed. Are you constrained by midstream capacity? No, that is one of the benefits of operating in an established basin. There is existing infrastructure from past development and so we can access new reservoirs with existing midstream capacity largely in place. ARABELLA EXPLORATION INC. OTCQB: AXPLF | ARABELLAEXPLORATION.COM JASON HOISAGER is the CEO of Arabella Exploration Inc., a company that is actively acquiring and developing assets in the Delaware Basin of West Texas. Prior to Arabella, Hoisager was an independent landman planning strategic land purchases, identifying investment partners, acquiring leases and marketing to operators seeking entry into the resource plays of North and West Texas. He attended Texas Tech University, where he studied finance and accounting. Oil and Gas Investor | OneOnOne: Energy Companies to Watch | Spring 2014 Abrabella Exploration is a pure-play Delaware Basin-focused company with all acreage in the oil fairway of the Wolfbone play.
  • 3. Do you foresee any acquisitions this year? Perhaps we will consider growth through new lease- holds in areas that complement our existing assets and build on our knowledge base and expertise in the play. What are you experiencing regarding well costs now that your drilling plans are ramping? With the refinement of our drilling techniques and ability to take advantage of existing infrastructure, we believe we can reduce our overall well cost this year by more than 20%. What is the greatest challenge you face this year? Like many of our peers, our biggest challenge is having access to capital to take advantage of opportunities. What is the one thing you want investors to know? We have a very strong operational team with superior technical expertise, experienced senior management and a strong board that provides knowledge and guidance. By adding those key components to an asset base that we see as the best developing basin growth opportunity in the U.S. today, we are focused on driving share- holder value. IR Contact: Derek Gradwell. 512-270-6990. dgradwell@mzgroup.us Arabella’s position is in the heart of the overpressured, stacked pays of the Delaware Basin with the potential for high- liquids-producing wells out of multiple pay zones. © Hart Energy | 1616 S. Voss, Ste. 1000, Houston, TX 77057 USA | +1.713.260.6400 | Fax +1.713.840.8585