Osage Exploration & Development (OEDV) is in our Small-Cap Growth Portfolio.
They are going to drill and complete five gross operated wells (2.6 net wells) during the first half of 2014. These are the first operated wells ever drilled by the company. If successful, these wells could double net production for the company by July. If that happens, I think the share price could push over $2.00.
Since the wells are being drilled near their other Mississippian JV horizontal wells that came in, the risk of dry holes is very low.
The most important well is the one that will test the Woodford. Devon (DVN)) is aggressively drilling Woodford horizontal wells just to the NW of Osage's leasehold. Devon has 15 operated wells drilling in this play, so it is definitely "the real deal". They are reporting Woodford IPs in the 800 boepd range. These wells cost approximately $3.5 million to drill and complete. These wells payout in 3-4 months.
Like all small-caps, OEDV is risky but this should be an interesting year for this puppy.
They are presenting at our luncheon in Houston on Friday, February 28.
OEDV
Re: OEDV
Here is what CLR is reporting in their SCOOP play, which is just to the west of Osage's acreage block in Coal County, OK.
Continental continues to deliver excellent, repeatable results from its drilling activity in the South Central Oklahoma Oil Province ("SCOOP"). The play, discovered by Continental and announced in October 2012, currently extends approximately 120 miles across several counties in Oklahoma and contains oil and condensate-rich fairways as delineated by approximately 450 gross industry wells. Continental currently operates or has a working interest in approximately 155 wells across its approximately 400,000 net acres of leasehold in the play.
In fourth quarter 2013, SCOOP net production averaged approximately 23,750 Boe per day, an increase of 18% sequentially and 233% above fourth quarter 2012. The recent growth was driven by the addition of 12 net (23 gross) operated and non-operated wells in the play during the fourth quarter 2013.
In SCOOP, Continental's primary focus continues to be exploration, appraisal and drilling to hold acreage (HBP), with an increasing shift to 2-mile lateral wells. The Company operated an average of 14 rigs during fourth quarter 2013 and plans to average 18 operated rigs in the play in 2014, with 40% of the activity on 2-mile lateral wells. Well costs in the play are targeted by year-end 2014 to be approximately $8.7 million for a standard 1-mile lateral across the play within the exploration program and approximately $13.5 million for a 2-mile lateral. Continental plans a number of spacing tests and one density pilot in 2014. Continental projects capital expenditures of approximately $1.1 billion in the Southern region in 2014, which includes SCOOP and other areas.
In fourth quarter 2013, average initial one-day test rates from operated and non-operated wells within the oil and condensate fairways of SCOOP were approximately 1,300 boe per day.
Continental continues to deliver excellent, repeatable results from its drilling activity in the South Central Oklahoma Oil Province ("SCOOP"). The play, discovered by Continental and announced in October 2012, currently extends approximately 120 miles across several counties in Oklahoma and contains oil and condensate-rich fairways as delineated by approximately 450 gross industry wells. Continental currently operates or has a working interest in approximately 155 wells across its approximately 400,000 net acres of leasehold in the play.
In fourth quarter 2013, SCOOP net production averaged approximately 23,750 Boe per day, an increase of 18% sequentially and 233% above fourth quarter 2012. The recent growth was driven by the addition of 12 net (23 gross) operated and non-operated wells in the play during the fourth quarter 2013.
In SCOOP, Continental's primary focus continues to be exploration, appraisal and drilling to hold acreage (HBP), with an increasing shift to 2-mile lateral wells. The Company operated an average of 14 rigs during fourth quarter 2013 and plans to average 18 operated rigs in the play in 2014, with 40% of the activity on 2-mile lateral wells. Well costs in the play are targeted by year-end 2014 to be approximately $8.7 million for a standard 1-mile lateral across the play within the exploration program and approximately $13.5 million for a 2-mile lateral. Continental plans a number of spacing tests and one density pilot in 2014. Continental projects capital expenditures of approximately $1.1 billion in the Southern region in 2014, which includes SCOOP and other areas.
In fourth quarter 2013, average initial one-day test rates from operated and non-operated wells within the oil and condensate fairways of SCOOP were approximately 1,300 boe per day.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: OEDV
Take a look at Devon Energy (DVN). In their current presentation (found under the Investors Tab) you will see several slides on their Mississippian-Woodford Trend play. Note that Osage's acreage in Logan County is within the map of the area Devon calls their target area (slide 23). If Osage completes a successful Woodford well in Q2, it should draw a lot of attention from the market. Devon is a large and very well respected E&P.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: OEDV
Osage Exploration and Development Announces Initiation of Equity Research Coverage by Noble Financial Capital Markets 03/04 08:00 AM
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SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$1.14,00$0.00,000.00%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, is pleased to announce that Noble Financial Capital Markets, a research-driven boutique investment bank focused on emerging growth companies headquartered in Boca Raton, Florida, initiated research coverage of Osage with a “Buy” investment rating and a price target of $2.00 per share.
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SAN DIEGO--(BUSINESS WIRE)-- Osage Exploration and Development, Inc. (OEDV:$1.14,00$0.00,000.00%) , an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, is pleased to announce that Noble Financial Capital Markets, a research-driven boutique investment bank focused on emerging growth companies headquartered in Boca Raton, Florida, initiated research coverage of Osage with a “Buy” investment rating and a price target of $2.00 per share.
Re: OEDV
After talking to the company at the luncheons, it is obvious they are going to make a big push to get more exposure this year. The share price depends on their five well drilling program. First Mississippian horizontal well should spud next week. - Dan reporting from the Navigator of the Seas offshore Cuba today.
Dan Steffens
Energy Prospectus Group
Energy Prospectus Group
Re: OEDV
The Osage CEO talked at Roth today (webcast available).
http://www.wsw.com/webcast/roth28/#table2
Osage, Torchlight and Arabella were the three worth a listen IMO. Saratoga presented but did not buy a webcast. However, the slides they used are available on the SARA website and indicate continued production growth with deep value metrics.
http://www.wsw.com/webcast/roth28/#table2
Osage, Torchlight and Arabella were the three worth a listen IMO. Saratoga presented but did not buy a webcast. However, the slides they used are available on the SARA website and indicate continued production growth with deep value metrics.