Armada Oil Announces Expansion of Acreage Position in Increasingly Active Niobrara Region

Armada Oil Announces Expansion of Acreage Position in Increasingly Active
Niobrara Region

HOUSTON, Oct. 9, 2012 (GLOBE NEWSWIRE) -- Armada Oil, Inc. (OTCQB:AOIL), an
emerging independent oil and gas company, today announced an important 1,000+
net acre addition to its existing 25,000 acres under control. Strategically
situated near existing infrastructure in Carbon County, Wyoming, the 26,000
acre project footprint marks Armada Oil's ongoing efforts to secure contiguous
land and expand in a region where the emergence of new oil completion
technologies has spurred heightened activity and growing interest. Armada Oil
has a 100% working interest in the additional acreage.

"While the full potential of the liquids-rich Niobrara is still being
discovered, numerous majors -- including Anadarko Petroleum, EGO Resources,
Marathon Oil, and Noble Energy -- are now working to increase their acreage
positions. I'm pleased that we have been among the first to arrive, secure a
meaningful position, and undertake a quality technical program," explained
Armada Oil President and CEO, James J. Cerna.

Today's news of expanded acreage follows on the heels of Armada Oil's recently
announced plans to accelerate oil exploration in the Niobrara with a 3
dimensional (3-D) seismic survey of approximately 41.05 square miles (26,272
acres) in and around Southern Wyoming's Laramie and Hanna Basins.Armada Oil
entered into a geophysical data acquisition agreement with Geokinetics USA,
Inc. to undertake the work.

"This expansion and technical work demonstrates our serious commitment to
pursuing the potential of the Niobrara, an unconventional play like the
Bakken, Eagleford and others, that has the potential to make America energy
independent. The advent of horizontal drilling with new completion techniques
is still in its infancy in terms of unlocking unconventional resources,"
explained Mr. Cerna.

In addition to Armada Oil's ongoing efforts to expand and exploit its Niobrara
acreage, management has undertaken plans to leverage producing assets in
Louisiana by way of a recently proposed business combination with Mesa Energy
Holdings, Inc.

Armada Oil and Mesa Energy announced last week that the companies have entered
into a non-binding letter of intent in order to pursue a business combination.
The closing of the transaction is subject to further due diligence,
negotiation and execution of definitive agreements, as well as necessary
consents and approvals. The Board of Directors of both Armada Oil and Mesa
Energy have unanimously approved the key terms of the proposed transaction and
have authorized their respective management to pursue the transaction.

Management of the companies believes that this contemplated transaction has
several benefits:

  oIt would bring together a sound, proven management team with both
    operational and public company experience;
  oStrong conventional, producing assets would provide cash flow and an
    underlying value to combined shareholders;
  oA low-cost entry into the Niobrara play with multiple underlying
    conventional prospects would leverage the combined company to significant
  oThe combined company would also have an attractive foothold in the
    Mississippi Lime play in Oklahoma; and
  oThe combined company would have critical mass to help raise capital
    efficiently, facilitate liquidity and spur rapid growth, thereby creating
    a solid platform to recognize value for shareholders.

The terms of the letter of intent are non-binding and subject to change. C. K.
Cooper & Company is serving as financial advisor on the transaction. It is the
goal of both Armada Oil and Mesa Energy to close this anticipated transaction
by the end of this year.

The completion of the described transactions is conditioned on, among other
things, the parties being satisfied with the results of their respective due
diligence, each party obtaining all required consents and approvals, including
all legal and regulatory approvals and all applicable shareholder and board of
directors approvals and any necessary approvals from third parties, agreement
on all final terms and conditions and negotiation of definitive agreements,
and there having occurred no material adverse change in the business or
condition, financial or otherwise, of either party. Armada Oil and Mesa Energy
can provide no assurances that these conditions will be satisfied. Management
cautions investors against making investment decisions based on any
expectation that the proposed transaction will be consummated, because, in its
view, such expectations are speculative.

About Armada Oil, Inc.

Houston, Texas-based Armada Oil, Inc. (OTCQB:AOIL) is an independent oil and
gas company focused on discovering, acquiring and developing multiple
objective onshore oil and natural gas resources in prolific and productive
geological formations in North America. Armada Oil holds strategic acreage
positions in and around the Laramie and Hanna Basins in Southern Wyoming that
includes a contiguous 26,000+ acre site near existing infrastructure in the
liquids-rich Niobrara formation and a footprint in the Eagle Ford shale play
in Texas.

More information about Armada Oil may be found at

The Armada Oil, Inc. logo is available at

Forward-Looking Statements

This press release contains forward-looking statements, including with respect
to the negotiation, implementation and effects of a proposed business
combination between Mesa Energy and Armada Oil that may result from the
non-binding term sheet. Those statements and statements made in this release
that are not historical in nature, including those related to future
synergies, competitive advantages and profitability, constitute
forward-looking statements. Forward-looking statements can be identified by
the use of words such as "expects," "projects," "plans," "will," "may,"
"anticipates," believes," "should," "intends," "estimates," and other words of
similar meaning. These statements are based on current plans, estimates and
projections, and, therefore, you should not place undue reliance on them.
These statements are subject to risks and uncertainties that cannot be
predicted or quantified, and Mesa Energy's or Armada Oil's actual results may
differ materially from those expressed or implied by such forward-looking
statements. These statements are subject to the risks and uncertainties,
including: difficulties, delays, unexpected costs or the inability to reach
definitive documents with respect to, or consummate, the proposed business
combination and other transactions referred to in this press release and those
described in the documents we file with the U. S. Securities and Exchange
Commission, and risks associated with the inherent uncertainty of Mesa
Energy's and Armada Oil's future financial results, Mesa Energy's or Armada
Oil's ability to locate and acquire suitable interests in oil and gas
properties on terms acceptable to them and to integrate and successfully
exploit any resulting acquisitions, the availability and pricing of additional
capital to finance their respective operations and leasehold acquisitions,
their respective ability to build and maintain successful operations
infrastructures, the intensity of competition, changes and volatility in
energy prices and general economic conditions. All forward-looking statements
included in this release are made as of the date of this press release, and
neither Mesa Energy nor Armada Oil assumes any obligation to update any such
forward-looking statements.

Statement Regarding Additional Information That May Become Available

If a transaction is to be proposed to the stockholders of Mesa Energy, Mesa
Energy and Armada Oil would file with the Securities and Exchange Commission
and distribute a Registration Statement on Form S-4 covering securities to be
issued in the transaction. It is expected that Mesa Energy shareholders would
receive a prospectus and proxy statement or information statement, as
applicable, in connection with such transaction. The final terms of the
prospective transaction remain subject to change and would only be reflected
in a binding definitive agreement that remains to be negotiated between the
companies. A copy of the definitive merger agreement would be filed along with
the prospectus and proxy statement /information statement. Mesa Energy
stockholders would be urged to read these and any other related documents the
corporation may issue. If and when these documents are filed, they will be
available for free at the SEC's website, Additional information
on how to obtain these documents from Mesa Energy would be made available to
stockholders if and when a transaction is to occur. Such documents are not
currently available.

No Offer or Solicitation to Sell

This communication shall not constitute an offer to sell or the solicitation
of an offer to buy, nor shall there be any sale of securities in any
jurisdiction in which such offer, solicitation or sale would be unlawful prior
to registration or qualification under the securities laws of any such
jurisdiction. No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the Securities Act of
1933, as amended. Mesa Energy, its directors and executive officers, may be
deemed to be participants in the solicitation of proxies or consents from Mesa
Energy's stockholders in connection with any transaction that might be
proposed to such stockholders. Information about the directors and executive
officers of Mesa Energy and their ownership of Mesa Energy and Armada Oil
stock will be included in the prospectuses and proxy/consent solicitation
statements if and when they become available.

CONTACT: Armada Oil, Inc.
         Briana Erickson,  800-676-1006

Armada Oil, Inc. logo
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