Prepared for August 2014

OTCQB: COIL

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Forward Looking Statements

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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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Executive Summary

Simple Capital Structure (OTCQB: COIL) 30.9MM shares issued (35.4 MM including vested options and warrants) Insider Ownership ~16MM Shares

Founder & CEO: Armen Nahabedian – 4th Generation Oilman Extensive database & knowledge provide first-mover advantage Experienced operator with boots on the ground advantage United States Marine 1999 – 2003; Infantry veteran of Iraq war

CFO: Phil McPherson – 11 Years as a Small Cap E&P Analyst Noted expert on California E&P companies Wall Street Journal “Best on the Street”; Multiple “5-Star” awards

Two Major Prospects Under Development Project Indian: Un-risked potential 100MM Bbls in place Yowlumne: Strategically located adjacent to hundred-million barrel fields

COIL: An Exploration & Production Company Focused on California

The Next Great California Independent

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Project Indian: Drilling January 25, 2014

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Project Indian: California Heavy Oil Background

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)

Invented in California in 1960 and in continuous use since

60% of California’s daily oil production (~300,000 barrels per day) is via Thermal Recovery

The Majority of California Oil Production is Heavy

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Project Indian: Overview

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 ~11-17 degree API

100% working interest – 80% NRI

More than 100 MMBbls in place; Expect 20% - 40% recovery

688 acres under lease from OXY in San Benito County

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Project Indian: Structure Contour Map

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Project Indian: Cross Section

N S

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Project Indian: Electric Log Of Indian #1-15 Well

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PG&E Gas Transmission Line

PG&E Power

Project Indian

Indian Oil Field: Ideal Thermal Recovery Opportunity

Phase I: CAPEX $500k 1-well pilot cyclic steam project

469-foot well logged 100-foot oil column

Perforated 14 feet 382-396’

Well currently producing 5-7 bbls/pd

11.6 gravity oil / lower viscosity

Phase II: CAPEX $4MM Begin Environmental Impact Report (EIR)

Expanded 4-well pilot steam project

o Includes production and steam facilities

Proximity to PG&E improves economics

o Electric power for pumps

o Natural gas for steam

Multiple points of sale within 100 miles

Low natural gas prices + high oil prices = attractive thermal economics

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Project Indian: Phase II Development Timeline

Long Lead Items Next 12 months

Item Expected Time

in Months Cost

Begin Environmental Impact Report

9-12 ~$250k

Order Steam Generator 9-12 ~$1.5MM

Construct Natural Gas Pipeline 6 ~$250k

Heated Production Tanks 3-6 ~$500k

Reverse Osmosis Water System 3-6 ~$250k

Heated injection/flow lines 3 ~$250k

Drill 4 Additional Vertical wells 2 days each ~$1MM

Total Cost of Phase II ~ $4MM

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Yowlumne

~3,000 gross acres leased by Citadel Exploration.

Yowlumne Area

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Yowlumne: Overview

2-26 AREA OF FOCUS

~3000 Acres gross

LANDSLIDE Family discovered 1985 ~20MM BOE recovered

from 15 wells

YOWLUMNE Discovered 1974

~100MM BOE Recovered

Currently Vintage (OXY)

Recent Activity, Prolific Production & Family Historic Success

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Vintage (OXY) OXY

CENTURY

374M-18 2.2 miles from 2-26

BRY CVX

2 miles

28-12.2 8 miles from 2-26

Spud Aug 2013

318X-127 Spud 11/26

120 Acres 100% NWI

COIL 2-26 12,500’ completed well Ready for stimulation

& testing

New Exploration Near Yowlumne

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Yowlumne: Mud Log

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Yowlumne: Summary

Well 2-26 (100% WI) work-over and/or stimulation candidate in 4Q14

o Estimated CAPEX $250k

2 exploration prospects – 12,000-14,000 ft

o Citadel 80% WI and operator

o CAPEX 2014/2015: $10MM (gross)

o Seismically defined

o Major operators active in the area

o 50MM Bbls un-risked reserve potential

Permits expected 4Q14

Drilling expected 1Q15

Key Takeaways

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Investment Summary

Four Generations of California Oil Expertise

100 identified prospects generated with 2D, 3D and well control data

California Renaissance Opportunity

Premium pricing vs. WTI

Increasing investment from large independents

Limited small-cap opportunity

Two initial projects

Project Indian: 100MM Bbls gross in place

Yowlumne: 2,700 gross acres leased (80% working interest)

Other California opportunities under lease or evaluation

Clean, simple structure

Two Employees: Experienced CEO & CFO

Chairman: Dan Szymanski, geophysicist & 15-year OXY exploration manager

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WHAT’S OLD IS NEW

Headquarters: 417 31st St. Unit A Newport Beach, CA 92663 949-612-8040 Phil McPherson, CFO pjm@citadelexploration.com

Geologic Office: 408 Bryant Circle Ojai, CA 93023 805-910-5369 Armen Nahabedian, CEO anahabedian@citadelexploration.com

www.citadelexploration.com

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