Lone Oak Acquisition Corp.

Merged with Lone Oak's subsidiary Arabella Exploration Corp. to target oil and gas in Texas' Delaware Basin

Lone Oak Acquisition Corp. (OTC Bulletin Board: LOKAF) entered into a merger agreement with Arabella Exploration LLC, the company announced on Oct. 23.

Under the agreement, Arabella will merge with Lone Oak's wholly owned subsidiary Arabella Exploration Corp. to target oil and gas in the Delaware Basin of Texas. Arabella currently has about 11,000 gross and 5,000 net acres leased in the Delaware Basin.

Arabella’s most recently completed well initially produced, on a gross basis, more than 1,200 barrels of oil equivalent per day and had a peak 30-day average production rate over 630 barrels of oil equivalent per day from a single lateral completion

"We are delighted to announce a deal with a rapidly growing oil company with such a highly skilled team – the Delaware Basin is one of the fastest growing oil plays in the world and Arabella is positioned to capitalize on its development,” Lone Oak Chairman Berke Bakay stated.

“Current estimates for the Delaware Basin indicate that the original oil in place, or the total gross amount of oil projected to be present in the formation, could be greater than that in the Bakken play and is expected to have lower development costs per barrel,” he said.