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Prepared for Euro Pacific Capital September, 2013 WHAT’S OLD IS NEW
Prepared for
Euro Pacific Capital
September, 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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43 Miles
52 Miles
World-wide, what basin has the largest concentration (per sq. mile) of oil fields exceeding 100MM Bbls?
Trivia Time!
Trivia Time!
43 Miles
52 Miles
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Midway-Sunset (CVX) 3B Bbls recovered; 532MMBbls est. res.
South Belridge (Aera) 1.5B Bbls recovered; 494MMBbls est. res.
Elk Hills (OXY) 1.3B Bbls recovered; 107 MMBbls est. res.
Cymric (CVX/Aera/PXP) 1.3B Bbls recovered; 119 MMBbls est. res.
Major San Joaquin Basin Oil Fields (Billion+ Bbls Recovered)
Kern River (CVX) 2B Bbls recovered; 476 MMBbls est. res.
Executive Summary: The Next Great California Independent
COIL: An Exploration & Production Company Focused on California
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Simple Capital Structure
COIL (OTCBB) 28.1MM shares issued (30.9MM including vested options and warrants)
February 2013 Capital Raise – 4.1MM shares @ $0.34 totaling $1.4MM.
Insider Ownership ~16MM Shares
Founder & CEO: Armen Nahabedian – 4th Generation Oilman
Family’s extensive geologic database & knowledge provide first-mover advantage
Experienced operator with boots on the ground advantage
United States Marine 1999 – 2003; Infantry veteran of Operation Iraqi Freedom
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” award in 2011; Multiple “5-Star” awards
Sojitz Energy Ventures (SEV) – Strategic Joint Venture Partner
$20 billion Japanese trading conglomerate
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
General Project Locations
Indian
Rancho Grande
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Yowlumne
Proximity to Refineries & Sales
Indian
Rancho Grande
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Yowlumne
Bakersfield 3 Refineries
107,000 Bbls/Day
L.A Basin (95 Miles South)
7 Refineries 1.02MM Bbls/Day
San Ardo Rail Head (35 Miles South)
OIL OCCURRENCE IN 66% OF TESTED SECTIONS
MARICOPA SUB-BASIN
TEJON PLATFORM
EDISON PLATFORM
BAKERSFIELD ARCH
Prospects & Fields Using Data Gathered Over 100 Years
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Vedder Formation
Santa Margarita
Olcese
Stevens – Temblor Basinal Sands
Rancho Grande North-South Cross-Section
~52,000 gross acres leased
by JV partner Sojitz Energy
Ventures.
Rancho Grande & Yowlumne Area
Rancho Grande Area
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~3,000 gross acres leased
by Citadel Exploration.
Yowlumne Area
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
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
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
North Tejon: 52,000 acres leased
Project Indian: 100MM Bbls 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
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 Circle
Ojai, CA 93023
www.citadelexploration.com
