Energy Prospectus

Osage Exploration & Development, Inc. (OEDV): an updated profile and forecast model have been posted under the Watch List Tab. Osage is one of our Small-Cap Growth Portfolio companies.

Slawson Exploration is the operator of their joint venture in Logan County, OK. They now have the infrastructure in place to rapidly increase production. Osage holds 25% working interest in this JV.

Slawson currently has two rigs developing the property and plans to bring a third rig in later this year.

Devon Energy (DVN) has recently completed several Woodford Shale horizontal wells on offsetting acreage with outstanding results. See Osage's recent presentation on this. The Woodford Shale is oily in this area and it sits directly under the Mississippian layer. It is under all of their JV acreage. Slawson is watching Devon carefully and is likely to test the Woodford next year. Their first goal is to space their Mississippian HZ wells to HBP all the JV acreage. Slawson is a first class operator and knows what they are doing.

Osage Exploration and Development Announces 608 BOE IP Rate on Horizontal Mississippian Well 09/16 08:00 AM

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SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$1.32,00$0.046,03.61%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today a one day peak IP on the Tontz 2-32H of 608 BOE. The Tontz 2-32H, operated by Stephens Production Company, is the second well to be drilled in Section 32-17N-3W and directly offsets the previously announced Tontz 1-32H. Osage owns 8.23% of the well.

Management Comments

“The significance of the early production from the Tontz 2-32H, which is the second horizontal Mississippian well in Section 32-17N-3W, may be more than meets the eye,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OEDV:$1.32,00$0.046,03.61%) . “The Tontz 1-32H, which was the first horizontal Mississippian well in the section, has already produced over 30,000 barrels of oil and over 30 million cubic feet of natural gas. Osage's Wolf 1-29H, which literally shares a drilling pad with the Tontz 2-32, has already produced over 80,000 barrels of oil and over 80 million cubic feet of natural gas.

“Conventional wisdom about drilling additional wells in close proximity to other producing horizontal wells suggests that the later wells may not be as strong. However, this has not been the case with the Tontz 2-32H. Despite the fact that so much oil and gas has been produced in very close proximity to the Tontz 2-32H, we are still seeing virgin reservoir IP rates. This result is a powerful testament to the oil saturation in this area and across our entire block. If this holds true for future drilling of the second, third, fourth, or fifth well in each section, the value of the reserves in Osage’s Nemaha Ridge project will be greatly enhanced over what has been previously projected.”

Mr. Bradford continued, “Our well results and those of offsetting operators in the Mississippian and Woodford formations in Logan County continue to redefine what the industry previously understood about the Horizontal Mississippian and oily Woodford plays. Osage’s Mississippian and Woodford acreage is simply in a superior part of the reservoir.”