McCabe Petroleum Corporation entered into a letter agreement to acquire stake in Locker State, Graham, Woods, Jackson and Emily Bell Prospects from Arabella Exploration, Inc. (OTCPK:AXPL.F).

McCabe Petroleum Corporation entered into a letter agreement to acquire stake in Locker State, Graham, Woods, Jackson and Emily Bell Prospects from Arabella Exploration, Inc. (OTCPK:AXPL.F) on April 15, 2015. In a related transaction, an unknown buyer entered into a purchase and sale agreement to acquire stake in Locker State, Graham, Woods, Jackson and Emily Bell Prospects from Arabella Exploration, Inc. (OTCPK:AXPL.F) on July 1, 2015. Combined deal value of both the transaction is approximately $47 million satisfied by $15 million in cash, transfer of a producing property in the Southern Delaware Basin and return of 1 million of Arabella's ordinary shares and the rights to certain earn-out shares valued at approximately $3 million.

The closing of the transaction is subject to buyer receiving the approval of its Board of Directors, buyer receiving financing for the transaction, court approval of a bankruptcy court in the event of a bankruptcy filing of Arabella. The transaction is expected to close on or about July 31, 2015.