Photo Release -- Armada Oil Enters Agreement to Develop Southern Wyoming Asset

Photo Release -- Armada Oil Enters Agreement to Develop Southern Wyoming Asset

HOUSTON, Nov. 9, 2012 (GLOBE NEWSWIRE) -- Armada Oil, Inc. (OTCQB:AOIL) an
emerging independent oil and gas company, is pleased to announce the Company
has entered into an agreement with a wholly owned subsidiary of Anadarko
Petroleum Corporation, allowing Armada to significantly broaden its flagship
Niobrara project in Southern Wyoming. Under terms of the agreement, which
covers more than 8,200 acres, Armada has the ability to earn oil and gas
leases by drilling wells and establishing production.

James Cerna
 James Cerna, CEO of Armada
 Oil announces Anadarko deal

A photo accompanying this release is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=15663

"We are excited about this opportunity in the Niobrara project., and we look
forward to unlocking what we feel is significant potential in the area." said
James J. Cerna, President and Chief Executive Officer. "We believe this asset
is especially distinctive because of the unique geology in the area as well as
the ability to use new drilling and completion technologies."

The agreement further allows for seismic data sharing, whereby Armada will
provide Anadarko the results of the data acquired from the 3-D seismic shoot
that is currently underway.

Armada has committed to drill its initial well on or before August 1,
2013.The terms of the agreement also provide for a continuous drilling
option, whereby vertical wells may be drilled every 120 days and horizontal
wells drilled every 180 days.

Strategically situated near existing infrastructure in Carbon County, Wyoming,
Armada Oil's original 26,000-plus acre Niobrara project is in a region where
the emergence of new drilling technologies has spurred heightened activity and
growing appeal.Renewed interest in the Niobrara was sparked in 2009 when
horizontal drilling and new completion technologies made possible this large
resource discovery. Since 2009, these same technologies have been continually
optimized to increase the reserve potential, as evidenced by public
announcements from numerous major producers.

Today's announcement follows news of Armada's recently announced proposed
business combination with Mesa Energy Holdings, Inc. A copy of the Armada Mesa
Joint Investor Presentation can be found at

http://www.armadaoilinc.com/media-center/presentations.

ARMADA-MESA PROPOSED BUSINESS MERGER

Armada Oil and Mesa Energy have entered into a non-binding Letter of Intent in
order to pursue a business combination. The closing of the business
combination 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.

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.

For additional information, please call Ms. Briana L. Erickson toll-free at
1-800-676-1006 or visit: www.armadaoilinc.com.

The Armada Oil, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=13093

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, www.sec.gov. 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: Ms. Briana L. Erickson
         1-800-676-1006
         www.armadaoilinc.com.

Armada Oil, Inc. logo