Osage Exploration and Development Announces the Spudding of Ten Horizontal Wells During the Second QuarterProvides Update on Field Operations
BUSINESS WIRE 8:00 AM ET 6/24/2013
Symbol Last Price Change
OEDV 0.97 -0.08 (-7.62%)
QUOTES AS OF 11:25:06 AM ET 06/24/2013
SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc.(OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today the spudding of ten wells during the second quarter of 2013. Nine of the wells are horizontal Mississippian wells, and one is a horizontal Woodford well. This brings the number of wells drilled in 2013 in which Osage owns a working interest to nineteen, compared to ten wells total in 2012.
Additionally, Osage announced a major electrical grid build out across its Logan County acreage block, as well as the construction of a state of the art gas gathering system to span the length and width of the Nemaha Ridge project.
Management Comments
“This has been the best quarter yet for Osage with respect to drilling operations. With ten new wells this quarter, and nineteen to date this year, we are maintaining a pace which will take us far beyond our stated goal of drilling twenty-four wells this year. Eighteen months ago, we raised a derrick to drill one of the very first horizontal Mississippian wells in Logan County; today as you drive around Logan, you can see roughly a dozen drilling rigs running, two pipelines being built, and hundreds of people working every day. We are very proud to have been an early mover in the face of all the vital economic activity occurring there today,” stated Kim Bradford, Chairman and CEO of Osage Exploration and Development(OEDV).
“This high drilling rate has not come without cost. Our overall production will be essentially flat quarter over quarter because we have been able to drill the wells faster than we can get them completed and into production. Delays caused by drilling multiple wells from the same pad, which is very efficient from a drilling perspective, means that completion and production operations have to wait. The shortage of three phase power to run our downhole and surface pumps has been an issue which we are addressing by building out the grid ourselves. While we have not yet gotten all of our wells in production, it would be a mistake to conclude that there is something amiss with this project solely based on a production lag, which will inevitably catch up.
“In terms of wells drilled and, more importantly, reserve growth, Osage is in hyper growth mode. Our acreage is not likely to be surpassed in terms of recoverable hydrocarbons anywhere in the Horizontal Mississippian play, and as we optimize how we produce our wells, the Osage shareholder will see substantial long-term value creation. From the very beginning of this project, we have never yet taken a short-term approach to development, and as such we remain focused on maintaining a high pace of drilling and getting our wells on line as soon as possible."