Osage Expl & Dev (OEDV)

[dan_s]

OEDV is one of the stocks in our Small-Cap Growth Portfolio. I believe it has incredible upside for us. I talked to the company after I saw this press release. Slawson is committed to a two rig development drilling program on their JV acreage with Osage in Logan County, OK. Slawson (a top shelf private E&P) should complete 20-22 gross wells this year in the JV. Osage will have 20% to 25% working interest in each well in the AMI (lower WI's due to some farm-ins from other mineral owners in the AMI). For more details on the JV, see our profile which can be found under the Watch List Tab. - Dan

PS: Not mentioned in the press release is the fact that Osage now has six gross Mississippian wells on-line in Logan County. There January production should be 350-400 boepd. I am now expecting net production to ramp up to 1,500 by 12-31-2013.

Press Release: January 22, 2013

Osage Exploration and Development, Inc. (OTCBB:OEDV), 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. “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.”