May, 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.

2

Executive Summary: The Next Great California Independent

COIL: An Exploration & Production Company focused on California

3

Two-for-Two: Our first two exploration wells undergoing completion

Phase One Drilling CAPEX: $1MM (fully funded).

o Rancho Grande (20% W.I.) San Joaquin Basin – 2 exploration wells 3,000’ – 4,000’ (successful)

o Project Indian (60% W.I.) Salinas Basin – 5-well pilot steam project (expect Q3 SPUD)

o Recently acquired 3,000 acres at Yowlumne; potential recompletion of existing well

Simple Capital Structure

o COIL (OTCBB) 28.1MM shares issued (29.6MM including vested options and warrants).

o February 2013 Capital Raise – 4.1MM shares @ $0.34 totaling $1.4MM

o Insider Ownership ~ 16MM Shares.

Founder & CEO: Armen Nahabedian – 4th Generation Oilman.

o Family’s extensive geologic database & knowledge provide first mover advantage.

o Experienced operator with boots on the ground advantage.

o United States Marine 1999 – 2003; Infantry veteran of Operation Iraqi Freedom.

CFO: Phil McPherson – 11 years as a small cap E&P analyst.

o Noted expert on California companies.

o Wall Street Journal “Best on the Street” award in 2011; Multiple “5 Star” awards.

Sojitz Energy Ventures (SEV) – Strategic Joint Venture Partner

o $50 billion Japanese trading conglomerate

o Vast technical and analytical resources

General Project Locations

Indian

Rancho Grande

4

Yowlumne

Disciplined Geographic Focus

“California’s Oil Renaissance” is in its Nascent Stage

5

Premium Prices: Supply imbalance between California refiners and global markets means

local production garners a $10 to $20 per barrel premium to other U.S. markets.

Disciplined Geographic Focus

6

Driven by technological innovation

o Reprocessing of vintage seismic data combined with new hi-resolution 3-D seismic

o Comingling of multiple hydrocarbon bearing zones

o Horizontal drilling applied to conventional targets

o Advances in thermal recovery for heavy oil

Larger independents are aggressively entering Basin

o Potential to drive future M&A activity and ultimately exit strategy

o Berry Petroleum (BRY) acquired by Linn Energy (LINE) ($4.3 billion, Feb ’13)

o Plains Exploration (PXP) acquired by Freeport-McMoRan (FCX) ($6.9 billion Dec ‘12)

Limited small-cap opportunities to capitalize on this trend

Older Fields and or Field Extensions represent low hanging fruit as technology and higher

commodity prices allow the industry to unlock previously uneconomic zones.

The best place to find oil is where it’s already been found!

~52,000 gross acres leased

By JV Partner Sojitz Energy

Ventures.

Rancho Grande & Surrounding Oil Fields

Rancho Grande Area

7

Rancho Grande: Overview

~52,000 gross acres under lease paid for by Sojitz

8

First Two-well program currently drilling

o Section 19 – Logged oil pay May 12, 2013

o Section 2 – Logged oil pay May 24, 2013

15 locations permitted, another 20 permits pending

2D and 3D seismic coverage of prospects to support extensive well control

Shallow objectives: 20+ Prospects

o Average prospect: 2-5MMBbls

o 8,000 feet or less

COIL pays 22.22% cost share for 20% WI

o First two wells net to COIL ~$450k

Rancho Grande

Rancho Grande: Two-for-Two

North Tejon 1-19

9

Pastoria Creek 3-2

Rancho Grande: Prospect Inventory 1,000 – 8,000 Feet

10

Area Formation SectionUnrisked

Potential Description

1 Vedder Oil Pool 19 & 20 15 MM BOE Horizontal Redevelopment of Vedder pool to the south in Sections 28,29,30, 31.

1b Monterey 19 & 20 25 MM BOE Horizontal development of Monterey formation Pulv Chert Zone at 7,500'.

2 Olcese Pool 19 & 20 2 MM BOE Vertical development of Olcese Pool at 7,500 feet.

2b Santa Margarita 19 & 20 5-7 MM BOE (First w ell drilled in Phase I: Currently undergoing completion

3 Olcese Channel Sand 21 5-8 MM BOE Seismically definded faulted anticlinal closure in Middle Miocene Olcese channels sand.

4 Valv Channel Sand 10 15 MM BOE Standard 338-9 w ell tested 500 Bopd from upper portion. Seismic show s the channel into Section 10.

5 Vedder & Eocene Sand 5,11,12,14 15 MM BOE Negotiating lease

6 Santa Margarita 4 & 36 8-10 MM BOE Fault-stratigraphic trap updip from Santa Margarita oil show s.

7 Olcese Sands 27 & 34 4-6 MM BOE Stratigraphic trap in thick Middle Miocene Olcese Sands present in 16-26 and 42-26 w ells.

8 Santa Margarita 25 15 MM BOE Anticlinal closure in Santa Margarita and deeper Miocene sandstones.

9 Vedder Sands 4 10 MM BOE 3D Seismic and w ell control defined anticlinal closure at 10,000 feet.

10 Reserve Sands 34 & 35 2 MM BOE 3D Seismic show s fault trap w ith over 100 feet untested closure.

11 Vedder Sands 34 & 35 7-10 MM BOE Untested Veddersand anticlinal closure w ith 3D Seismic and w ell control.

12 Reserve Sands 2 4 MM BOE Drilled and completed May, 2013

13 Santa Margarita 35 2 MM BOE Updip development at a depth of 1,300 - 2,000 feet.

14 Vedder Sands 1,2,10,11 5-10 MM BOE Fault trap updip from Arco Tejon 1-2 deep test w ell. 3D Seismic show s NE-SW trending reverse fault.

15 Shallow Vedder Sands 7,12,13 5 MM BOE Anticlinal closure beneath Tuis Creek basalts at 5,000 feet.

16 Olcese Sands 10,11 5 MM BOE 3D Seismic show s faulted NW trending anticlinal arch w ith amplitude anomalies.

17 Olcese Sands 11 5 MM BOE 3D Seismic show s faulted NW trending anticlinal arch w ith amplitude anomalies.

18 Santa Margarita 23 & 24 10-50 MM BOE Sub-Thrust anticlinal closure beneath the south dipping Pleito Thrust Fault.

19 Vedder Sands 8,9,16,17 20-50 MM BOE Sub-Thrust anticlinal closure beneath the south dipping Pleito Thrust Fault.

20 Reserve Sands 9 5-10 MM BOE Stratographic pinchout, 3D Seismic show s local domal closure.

21 Santa Margarita 8 10-15 MM BOE East plunging anticline defined by 3D Seismic. Stacked amplitude anomalies.

22 Vedder Sands 19 & 20 25-40 MM BOE Westerly continuation of the sub-thrust anticlinal fold beneath the south dipping Pleito Thrust.

23 Vedder Sands 7 10-20 MM BOE Westerly culmination of the Section 8 anticline, w est of the Grapevine Fault.

Prospects already drilled

Project Indian: Overview

688 acres under lease from OXY in San Benito County

11

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 (permitting expected June 4, 2013 by San Benito County Board of Supervisors)

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

12

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

13

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

Three initial projects: Two-for-Two in exploration

North Tejon: 52,000 acres leased

Project Indian: 100MMBbls 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; Phase 1 CAPEX Fully Funded

No debt

Contact Information

14

Headquarters:

417 31st St. Unit A

Newport Beach, CA 92663

949-612-8040

Geologic Office:

420 Bryant Lane

Ojai, CA 93023

805-646-4189

WHAT’S OLD IS NEW