Citadel Exploration Inc. announced drilling has commenced at Rancho Grande. This milestone marks the first drilling since the company's founding in 2011. Citadel has executed an agreement with Sojitz Energy Ventures (Rancho Grande operator) for participation on two exploratory wells at Rancho Grande. Under terms of the agreement, Citadel will pay 22.22% cost share for a 20% working interest. Each well will test a separate prospect with multiple objectives. Citadel has also obtained a separate letter of intent that will allow for continued operations at Rancho Grande with Sojitz Energy Ventures. In addition to the progress on its existing projects, the company is also pleased to announce expansion of its portfolio with acquisition of approximately 3,000 acres from AERA Energy, LLC. This acreage has been mapped using a combination of both 2D and 3D seismic with extensive well control data, and is in close proximity to the Yowlumne oil field which has produced more than 100 million barrels of oil.

On 11/15/2012, Citadel Exploration, Inc announced that they will be unable to file their next 10-Q by the deadline required by the SEC.

Citadel Exploration Inc. announced that Chris Whitcomb gave the company notice of his resignation from his position as Chief Financial Officer, Secretary, Treasurer, and a Director of the company, which resignation was accepted by the company on September 4, 2012. On September 4, 2012, the company announced that the board of directors unanimously appointed Phillip McPherson as Secretary, Treasurer, and a Director. Phillip J. McPherson, 38, Chief Financial Officer, Secretary, Treasurer, and Director. Mr. McPherson has spent the last 15 years employed by the financial industry. In 2007 Mr. McPherson joined Global Hunter Securities as Managing Director of the firms Energy Group.