Citadel Exploration Inc. (OTC: COIL) signed a nonbinding letter of intent with private-equity investor Cibolo Creek Partners to fund future acquisition and development of oil and natural gas assets in California, the company said March 30.

"I have worked with the principals of Cibolo Creek for more than a decade. They share Citadel's view that the current commodity price environment has created a unique opportunity to acquire oil and natural gas properties," said Phil McPherson, Citadel’s CFO. "We are currently evaluating several acquisitions and believe over the next 60 to 120 days we will be successful in adding these properties to our current oil and natural gas portfolio," he added.

Cibolo Creek Partners is based in Midland, Texas.

Citadel Exploration, based in Newport Beach, Calif., operates in California’s Salinas and San Joaquin basins. Currently, it is working in the Indian Oil Field and on the Yowlumne project.