An updated company profile for Osage Exploration & Development (OEDV) has been posted under the Watch List Tab. Osage is a member of our new Small-Cap Growth Portfolio.
EPG members can log on to the website and download this profile. My Fair Value Estimate is shown at the bottom of the profile.
2013 could be a big year for this puppy. Slawson Exploration has now committed two rigs to start on an aggressive development drilling program on their jointly held acreage in Logan County, OK. This horizontal Mississippian play has a lot of upside if the first seven wells are any indication.
Osage (OEDV)
Osage (OEDV)
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Osage (OEDV)
Form SC 13D/A OSAGE EXPLORATION & Filed by: SUNSTONE LLC 01/02 10:40 AM
http://xml.10kwizard.com/filing_raw.php ... ge=8634313
Filed on: January 2, 2013
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reveals Sunstone Corporation acquired 7.8% of oedv
<Sunstone Corporation operates as an oil and gas exploration and production company. The company also provides tools and equipments for oil and gas drilling. Sunstone Corporation is based in Oklahoma City, Oklahoma.>
http://xml.10kwizard.com/filing_raw.php ... ge=8634313
Filed on: January 2, 2013
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reveals Sunstone Corporation acquired 7.8% of oedv
<Sunstone Corporation operates as an oil and gas exploration and production company. The company also provides tools and equipments for oil and gas drilling. Sunstone Corporation is based in Oklahoma City, Oklahoma.>
Re: Osage (OEDV)
We are going to be watching Osage very closely this year. If you've read our recent profile on the company you know why. EPG members can log on and find it under the Watch List tab.
Our Small-Cap Growth Portfolio contains companies that I believe have significant near-term production growth potential.
Our Small-Cap Growth Portfolio contains companies that I believe have significant near-term production growth potential.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: Osage (OEDV)
Barrington Research Initiates Equity Research Coverage of Osage Exploration and Development 01/07 08:00 AM
SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$0.95,00$0.03,003.26%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, is pleased to announce that Barrington Research, a full-service investment firm located in Chicago, Illinois, initiated research coverage of Osage with an “Outperform” investment rating and a twelve month price target of $2 per share. Barrington is the first investment firm to initiate equity research coverage of Osage.
SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$0.95,00$0.03,003.26%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, is pleased to announce that Barrington Research, a full-service investment firm located in Chicago, Illinois, initiated research coverage of Osage with an “Outperform” investment rating and a twelve month price target of $2 per share. Barrington is the first investment firm to initiate equity research coverage of Osage.
Re: Osage (OEDV)
here we go 
Osage Exploration and Development Releases Initial Production Rate of 623 BOE from Horizontal Mississippian Well 01/22 08:00 AM
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SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$1.18,00$0.00,000.00%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today preliminary production results on its Horizontal Mississippian well in Logan County, Oklahoma. The Krittenbrink 1-1H, located in Section 1-18N-4W, had its first oil sale on December 30th and within two weeks achieved one-day production of 623 BOE. It has produced 6,740 BOE to date. Total volumes of hydrocarbons produced have been composed of over 90% crude oil.
Management Comments
“We are very pleased with the initial production of the Krittenbrink 1-1H and with the early results of our accelerated drilling program,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OEDV:$1.18,00$0.00,000.00%) . “With the Krittenbrink 1-1H we have now gotten the time from spud to first sales down to about 70 days. Coupled with the high initial production rates that we are experiencing, the economics of this program are outstanding. The success of the Krittenbrink 1-1H is a reminder of the potential of our Nemaha Ridge project. Along with our partners US Energy Development Corporation and project operator Slawson Exploration Company, we intend to drill over twenty wells this year in Logan County with the objective of amassing a portfolio of repeatable, highly economic oil wells.”
Osage Exploration and Development Releases Initial Production Rate of 623 BOE from Horizontal Mississippian Well 01/22 08:00 AM
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SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$1.18,00$0.00,000.00%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today preliminary production results on its Horizontal Mississippian well in Logan County, Oklahoma. The Krittenbrink 1-1H, located in Section 1-18N-4W, had its first oil sale on December 30th and within two weeks achieved one-day production of 623 BOE. It has produced 6,740 BOE to date. Total volumes of hydrocarbons produced have been composed of over 90% crude oil.
Management Comments
“We are very pleased with the initial production of the Krittenbrink 1-1H and with the early results of our accelerated drilling program,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OEDV:$1.18,00$0.00,000.00%) . “With the Krittenbrink 1-1H we have now gotten the time from spud to first sales down to about 70 days. Coupled with the high initial production rates that we are experiencing, the economics of this program are outstanding. The success of the Krittenbrink 1-1H is a reminder of the potential of our Nemaha Ridge project. Along with our partners US Energy Development Corporation and project operator Slawson Exploration Company, we intend to drill over twenty wells this year in Logan County with the objective of amassing a portfolio of repeatable, highly economic oil wells.”
Re: Osage (OEDV)
This latest well result announced by Osage cleared up a cloud that had been hanging over the stock. This well's initial production results strongly imply that they have solved the sand problem that had occurred in the well that was previously drilled very close to this one, whose trials and tribulations were reported in Osage's PR dated 6/12/12. That news really hurt the stock, taking it from $1.20 down to around $.80 in short order. But now it appears that Osage has successfully cracked the code on how to frac and complete these wells so that they don't run into sand problems.
Another big reason for the extended rally in the stock over the last few months is that Barrington Research initiated coverage of the stock (when it was at $.92) with an Outperform rating, $2 PT. See their report at the hyperlink included in this same post at http://www.siliconinvestor.com/readmsg. ... d=28697625 . I was not aware of Barrington before but the guy did an excellent job and obviously knows the oil & gas business pretty well. Its virtually unheard of for an OTC penny stock to get buy-side analyst coverage, so this was a tremendous achievement for Osage. As demonstrated by the quarterly projections provided by Barrington, it now appears that Osage could reach the point where cash flow from production exceeds current cap ex needs by 2Q '14.
But as we see from the Barrington report and Osage's latest presentation, it appears that they are already working on their next project, which will be in Pawnee County. This county is similar to Osage's current county of operations, Logan, in that its in an area that is currently considered to be in the fringe of the Miss. play (as Logan was prior to Osage and Devon drilling there). They have about 3,500 acres there, Barrington states that they plan to be the operator of that project, and their presentation states that they plan to commence drilling there sometime in the latter half of this year. It will be interesting to see whether they plan to farm out a partial interest in that project or raise some more capital and keep all of it for themselves.
From a capital structure perspective, the only thing that could possibly impede further stock price appreciation is 1.25M warrants that are exerciseable @ $1.25 and that expire in less than 3 months. But since the shares underlying these warrants are not registered, even if these got exercised, the shares from the exercise could not hit the market for another 6 months after that, so I don't see these as being much of an impediment and the ~ 1.5M that would come into the treasury from their exercise would be put to good use.
Another big reason for the extended rally in the stock over the last few months is that Barrington Research initiated coverage of the stock (when it was at $.92) with an Outperform rating, $2 PT. See their report at the hyperlink included in this same post at http://www.siliconinvestor.com/readmsg. ... d=28697625 . I was not aware of Barrington before but the guy did an excellent job and obviously knows the oil & gas business pretty well. Its virtually unheard of for an OTC penny stock to get buy-side analyst coverage, so this was a tremendous achievement for Osage. As demonstrated by the quarterly projections provided by Barrington, it now appears that Osage could reach the point where cash flow from production exceeds current cap ex needs by 2Q '14.
But as we see from the Barrington report and Osage's latest presentation, it appears that they are already working on their next project, which will be in Pawnee County. This county is similar to Osage's current county of operations, Logan, in that its in an area that is currently considered to be in the fringe of the Miss. play (as Logan was prior to Osage and Devon drilling there). They have about 3,500 acres there, Barrington states that they plan to be the operator of that project, and their presentation states that they plan to commence drilling there sometime in the latter half of this year. It will be interesting to see whether they plan to farm out a partial interest in that project or raise some more capital and keep all of it for themselves.
From a capital structure perspective, the only thing that could possibly impede further stock price appreciation is 1.25M warrants that are exerciseable @ $1.25 and that expire in less than 3 months. But since the shares underlying these warrants are not registered, even if these got exercised, the shares from the exercise could not hit the market for another 6 months after that, so I don't see these as being much of an impediment and the ~ 1.5M that would come into the treasury from their exercise would be put to good use.
Re: Osage (OEDV)
Thanks Ed, a very valuable post. I hope to get Osage in to host a luncheon for us in May or June. They should have a lot more to talk about by then.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group