Arabella Exploration, Inc. announced that it has entered into a $45 million Senior Secured Note Facility with a New York based investor. The company sold an initial $16 million of Senior Secured Notes under the facility to the Investor on September 2, 2014, which will be used to reduce payables and provide working capital for development, drilling and completion of the company's wells in the Southern Delaware Basin. The company expects to sell an additional $5 million of Notes in the next 60 days pending the satisfaction of certain conditions.

Thereafter, the company may sell the remainder of the Notes to the Investor in tranches through September 2, 2015, based on meeting certain drilling performance hurdles. The Notes bear interest at an annual rate of 15% and mature one year from their date of sale. In conjunction with the sale of the notes, the company issued warrants to purchase 1,300,000 of the company's ordinary shares at a price of $5.00 per share.