MIDLAND, TX--(Marketwired - October 08, 2014) - Arabella Exploration, Inc. (OTCQB: AXPLF) ("Arabella" or the "Company"), an oil and gas E&P company focused on the Southern Delaware portion of the Permian Basin, today announced that it has backed into ownership on additional acreage in Reeves County in the Southern Delaware Basin. Arabella has owned a reversionary interest in certain acres controlled by Energen Resources Corporation ("Energen"). By paying its portion of the expenses to date of drilling and leasehold costs, these interests have reverted into standard non-operated, working interests in these wells and properties.
With this reversion, Arabella has backed into a 0.5333% working interest in 6,166 gross, 5,505 net, acres held by Energen in the Delaware Basin. Arabella's interest amounts to 33 gross and 29 net acres. There is currently one horizontal well producing on this project and one permitted well. The Company's working interest entitles it to its pro rata share of the revenue and reserves attached to those wells. Arabella believes that Energen intends to drill additional wells on this project.
This is the first execution of reversionary interests Arabella holds in several projects across the Southern Delaware Basin. The reversionary interests were retained by the Company's wholly owned subsidiary Arabella Exploration, Limited Liability Company as compensation while conducting its previous business as a land company buying and selling lease interests.
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.
Source: Marketwired (Canada)
(October 8, 2014 - 8:00 AM EDT)
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