Osage E&D

Post Reply
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Osage E&D

Post by dan_s »

Osage Exploration & Development has agreed to host our luncheon at The Hess Club in Houston on Thursday, May 3rd. This micro-cap looks very interesting. EPG Members can find a fact sheet on the company under our Watch List Tab.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Re: Osage E&D

Post by dan_s »

April 23 Press Release:
Osage Exploration and Development, Inc. (OTCBB: OEDV.OB - News) is pleased to announce that the 72-hour Initial Production rate on the Wolf 1-29 averaged over 1185 BOE/D. The total production was composed of approximately 85% oil, and 15% high BTU natural gas. The average production during the first full 30 days on the Wolf was over 876 BOE/D.

The Wolf 1-29H, of which Osage owns a 25% Working Interest and a 19.5% Net Revenue Interest, was drilled to a vertical depth of 5,816 feet with a lateral bore length of 4,104 feet and was treated with a 12 stage hydraulic frac job.

"The strength of the Wolf’s early production will have a resounding impact on Osage’s immediate and long-term future. The initial production at the Wolf is among the highest in the Horizontal Mississippian play to date,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development. “More significantly, the economics of the well due to the percentage of crude oil versus natural gas and our initial 50% water cut are unsurpassed to our knowledge.”

"We have expressed our belief that Osage has captured potentially the best Mississippian acreage in the State of Oklahoma with its Nemaha Ridge project, and while our results are very preliminary, we are confident that this team and this prospect will continue to deliver outstanding results for our shareholders," continued Mr. Bradford. “Our geological group consisting of VP Exploration Greg Franklin and Chad Taylor, with assistance by Julie Shannon has truly overachieved on this project.”

Greg Franklin, Director, stated, "We are working very hard to systematically prepare all of the acreage for drilling in an aggressive fashion. Our confidence remains high that we can continue to bring highly economic wells online in this project. While our early results have been gratifying, there may yet be room for improvement across this block."

For pictures of the Nemaha Ridge project to date, click on the URL below:

http://www.osageexploration.com/s/OsagePhotos.asp

For a visual depiction of the horizontal drilling technique that will be utilized in the Nemaha Ridge project, click on the video link below:

http://www.osageexploration.com/video/index.htm

About Osage Exploration and Development, Inc.

Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, and executive offices in Bogotá, Colombia, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the U.S. and Colombia. http://www.osageexploration.com
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Re: Osage E&D

Post by dan_s »

This well is operated by Slawson Exploration Co., a very well respected private E&P compamy.

Under the JV with Slawson, Osage is carried for 10% of the costs on the first three wells in the joint acreage. So Osage pays 15% for their 25% working interest. If the next two wells are as good as the first one, Osage will have solid cash flows to keep up with Slawson on full development of the project.

Note that these Mississippian wells are shallow and much cheaper to drill and complete than a typical Bakken or Eagle Ford well.
Dan Steffens
Energy Prospectus Group
dan_s
Posts: 34648
Joined: Fri Apr 23, 2010 8:22 am

Re: Osage E&D

Post by dan_s »

I am working on the company profile and forecast model for Osage today. I hope to send it out by Friday to our members. This one looks very good.

Osage is hosting our luncheon in Houston at The Hess Club on Thursday, May 3. Their presentation will focus on their Oklahoma Mississippian joint venture operated by Slawson. What I found out today:
> They should have six gross wells on-line by Q4
> They expect to drill 24-30 gross wells in the JV during 2013 (assumes two rig program in 2013)
> Their is room for 400 gross wells within the AMI with Slawson, so Osage has a lot of running room.
Dan Steffens
Energy Prospectus Group
Post Reply