Arabella Exploration, LLC entered into a merger agreement to acquire Lone Oak Acquisition Corporation from AQR Capital Management, LLC and other shareholders in a reverse merger transaction on October 23, 2013. Under the terms of the agreement, Lone Oak will issue 4.8 million ordinary shares at closing. Of the shares issued at closing, 1.7 million will be subject to escrow in addition to management lock-up provisions. Arabella will gain the right to have one-third of the escrow shares released by achieving certain growth targets. Upon closing, four persons on the combined company's Board of directors will be designated by Arabella and three persons will be designated by Lone Oak.

The closing of the transaction is subject to certain conditions specified in the agreement, including that $5 million of net cash remain in Lone Oak post transaction, financial audit of Lone Oak, consummation of due diligence, approval from the shareholders of Arabella and Lone Oak, execution of employment agreement, cancellation of options, completion of an offer, financial audit of the Lone Oak, Lone Oak's directors resigning and approval from regulatory authorities. The transaction will be terminated if the closing does not take place by December 24, 2013. Mitchell S. Nussbaum and Giovanni Caruso of Loeb & Loeb LLP acted as legal advisor for Lone Oak and Michael Dawson of Dawson Parrish, PC acted as legal advisor for Arabella.