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The GHS 100 Conference
June, 2013
WHAT’S OLD IS NEW
Forward Looking Statements
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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World-wide, what basin has the largest concentration (per sq. mile) of oil fields exceeding 100MM Bbls?
Trivia Time!
World-wide, what basin has the largest concentration (per sq. mile) of oil fields exceeding 100MM Bbls?
Trivia Time!
Where is the largest concentration of 100mm-barrel oil fields (per sq. mile) in the world?
Trivia Time!
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Executive Summary: The Next Great California Independent
COIL: An Exploration & Production Company focused on California
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Simple Capital Structure
o COIL (OTCBB) 28.1MM shares issued (29.6MM including vested options and warrants).
o February 2013 Capital Raise – 4.1MM shares @ $0.34 totaling $1.4MM
o Recent Trading Range: $1.10- $1.30
o Insider Ownership ~ 16MM Shares.
Founder & CEO: Armen Nahabedian – 4th Generation Oilman.
o Family’s extensive geologic database & knowledge provide first mover advantage.
o Experienced operator with boots on the ground advantage.
o United States Marine 1999 – 2003; Infantry veteran of Operation Iraqi Freedom.
CFO: Phil McPherson – 11 years as a small cap E&P analyst.
o Noted expert on California companies.
o Wall Street Journal “Best on the Street” award in 2011; Multiple “5 Star” awards.
Sojitz Energy Ventures (SEV) – Strategic Joint Venture Partner
o $20 billion Japanese trading conglomerate
o Vast technical and analytical resources
o Past success in Gulf Coast, Mid-Con, GOM & International Exploration
Ease of Discovery
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12.72
0.6
Billions of Barrels Discovered
Pre 1936 Post 1936
San Joaquin Valley’s Top 20 fields
Ease of Discovery
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Oil flowing free in a fresh water creek on an un-explored field in California
General Project Locations
Indian
Rancho Grande
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Yowlumne
OIL OCCURRENCE IN 66% OF TESTED SECTIONS
MARICOPA SUB-BASIN
TEJON PLATFORM
EDISON PLATFORM
BAKERSFIELD ARCH
Prospects & Fields Using Data Gathered Over 100 Years
~52,000 gross acres leased
by JV partner Sojitz Energy
Ventures.
Rancho Grande & Surrounding Oil Fields
Rancho Grande Area
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~3,000 gross acres leased
by Citadel Exploration.
Yowlumne Area
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Vedder Formation
Santa Margarita
Olcese
Stevens – Temblor Basinal Sands
RANCHO GRANDE NORTH-SOUTH CROSS SECTION
Rancho Grande: Prospect Inventory 1,000 – 8,000 Feet
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Area Formation SectionUnrisked
Potential Description
1 Vedder Oil Pool 19 & 20 15 MM BOE Horizontal Redevelopment of Vedder pool to the south in Sections 28,29,30, 31.
1b Monterey 19 & 20 25 MM BOE Horizontal development of Monterey formation Pulv Chert Zone at 7,500'.
2 Olcese Pool 19 & 20 2 MM BOE Vertical development of Olcese Pool at 7,500 feet.
2b Santa Margarita 19 & 20 5-7 MM BOE (First w ell drilled in Phase I: Currently undergoing completion
3 Olcese Channel Sand 21 5-8 MM BOE Seismically definded faulted anticlinal closure in Middle Miocene Olcese channels sand.
4 Valv Channel Sand 10 15 MM BOE Standard 338-9 w ell tested 500 Bopd from upper portion. Seismic show s the channel into Section 10.
5 Vedder & Eocene Sand 5,11,12,14 15 MM BOE Negotiating lease
6 Santa Margarita 4 & 36 8-10 MM BOE Fault-stratigraphic trap updip from Santa Margarita oil show s.
7 Olcese Sands 27 & 34 4-6 MM BOE Stratigraphic trap in thick Middle Miocene Olcese Sands present in 16-26 and 42-26 w ells.
8 Santa Margarita 25 15 MM BOE Anticlinal closure in Santa Margarita and deeper Miocene sandstones.
9 Vedder Sands 4 10 MM BOE 3D Seismic and w ell control defined anticlinal closure at 10,000 feet.
10 Reserve Sands 34 & 35 2 MM BOE 3D Seismic show s fault trap w ith over 100 feet untested closure.
11 Vedder Sands 34 & 35 7-10 MM BOE Untested Veddersand anticlinal closure w ith 3D Seismic and w ell control.
12 Reserve Sands 2 4 MM BOE Drilled and completed May, 2013
13 Santa Margarita 35 2 MM BOE Updip development at a depth of 1,300 - 2,000 feet.
14 Vedder Sands 1,2,10,11 5-10 MM BOE Fault trap updip from Arco Tejon 1-2 deep test w ell. 3D Seismic show s NE-SW trending reverse fault.
15 Shallow Vedder Sands 7,12,13 5 MM BOE Anticlinal closure beneath Tuis Creek basalts at 5,000 feet.
16 Olcese Sands 10,11 5 MM BOE 3D Seismic show s faulted NW trending anticlinal arch w ith amplitude anomalies.
17 Olcese Sands 11 5 MM BOE 3D Seismic show s faulted NW trending anticlinal arch w ith amplitude anomalies.
18 Santa Margarita 23 & 24 10-50 MM BOE Sub-Thrust anticlinal closure beneath the south dipping Pleito Thrust Fault.
19 Vedder Sands 8,9,16,17 20-50 MM BOE Sub-Thrust anticlinal closure beneath the south dipping Pleito Thrust Fault.
20 Reserve Sands 9 5-10 MM BOE Stratographic pinchout, 3D Seismic show s local domal closure.
21 Santa Margarita 8 10-15 MM BOE East plunging anticline defined by 3D Seismic. Stacked amplitude anomalies.
22 Vedder Sands 19 & 20 25-40 MM BOE Westerly continuation of the sub-thrust anticlinal fold beneath the south dipping Pleito Thrust.
23 Vedder Sands 7 10-20 MM BOE Westerly culmination of the Section 8 anticline, w est of the Grapevine Fault.
Prospects already drilled
Rancho Grande: Three-for-Three Completions
North Tejon 1-19
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Pastoria Creek 3-2 Pastoria Creek 1-2
Project Indian: Overview
688 acres under lease from OXY in San Benito County
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Analogous to North San Ardo oilfield
o Discovered by Chevron in 1950
o Re-discovered by CEO in 2005
with Salinas Energy
Shallow heavy oil ~13 degree API
60% working interest – 47.4% NRI
100 MMBbls of gross oil in place
Expect 20% - 40% recovery
Phase I CAPEX $500k ($300k Net)
5-well pilot cyclic steam project
Proof of concept expected by end of 2013 (permitting expected June 4, 2013 by San Benito County Board of Supervisors)
Proximity to PG&E improves economics
o Electric power for pumps
o Natural gas for steam
PG&E Gas Transmission Line
PG&E Power
Project Indian
Project Indian: California Heavy Oil Background
The Majority of California Oil Production is Heavy
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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)
60% of California daily oil production (~300,000 barrels per day) is heavy
Low natural gas prices + high oil prices = attractive thermal economics
The California Premium
“California’s Oil Renaissance” is in its Nascent Stage
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Premium Prices: Supply imbalance between California refiners and global markets means
local production garners a $10 to $20 per barrel premium to other U.S. markets.
$40
$60
$80
$100
$120
$140
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Historical Comparison of Oil Price Benchmarks
California Oil (Chevron Corp.'s Midway-Sunset) WTI Brent
CITADEL: Key Take Aways
Four Generations of California Oil Expertise
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100 identified prospects generated with 2D, 3D and well control data
Three initial projects: Three-for-Three Completions
North Tejon: 52,000 acres leased
Project Indian: 100MMBbls gross in place
Yowlumne: 3,000 acres leased
California Renaissance Opportunity
Premium pricing vs. WTI
Increasing investment from large independents
Limited small-cap opportunity
Clean, simple structure
Two Employees: Experienced CEO & CFO
JV with Sojitz Corp; Phase 1 CAPEX Fully Funded
No debt
May, 2013
WHAT’S OLD IS NEW
Headquarters:
417 31st St. Unit A
Newport Beach, CA 92663
949-612-8040
Geologic Office:
420 Bryant Lane
Ojai, CA 93023
805-646-4189
www.citadelexploration.com
