Osage Exploration and Development Announces Record Annual Revenues, Production, and Reserves
SAN DIEGO--(BUSINESS WIRE)-- 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 its financial and operational results for the full year 2012. Year-over-year highlights from Osage Exploration and Development include:
74% increase in total revenues from $3,515,723 to $6,120,024;
107% improvement in oil sales from $1,920,834 to $3,973,666; and,
107% growth in annual oil production from 19,162 Bbls in 2011 to 39,684 Bbls.
The full text of the Company's Form 10-K for 2012 is available on the SEC EDGAR system or on Osage's website: http://www.osageexploration.com.
The Company's previously announced accelerated drilling program is proceeding ahead of initial estimates. Initially planning to drill two wells per month, Osage and its partners have spud ten wells to date in 2013, fully 50% ahead of the planned pace. Currently, there are eight wells in production and an additional twelve wells in various stages of drilling, completion, and flowback. Osage and its partners are employing two rigs full-time, and are utilizing a third rig opportunistically.
Since the commencement of production in the Company's Nemaha Ridge project in Logan County, Oklahoma, average daily production net to Osage has increased 115% from 112 Boe/d in the second quarter of 2012 to 241 Boe/d in the first quarter of 2013.
Osage's third party independent reserve engineer, Pinnacle Energy Services, provided a year-end reserve report on the Company's oil and gas assets in Logan County, Oklahoma. The report is based on the first five Proved Developed Producing locations (PDP), three Proved Developed Not Producing locations (PDNP), nine reported Proved Undeveloped (PUD) well locations, and 370 Non-Proved (NP) locations. The Estimated Ultimate Recovery (EUR) per PUD location is approximately 285,000 Boe. The product mix is estimated to be 60% crude oil and 40% natural gas. Based on Pinnacle's report, Osage's Nemaha Ridge project is approximately 2% proved developed.
Commenting on Osage Exploration and Development's 2012 year-end report, Mr. Kim Bradford, Osage's Chairman and CEO, stated, "2012 was a record year for Osage with respect to revenues, production, and establishing our initial reserve base. 2013 has started out even better. We are drilling at a much stronger pace than earlier announced which will drive our production and reserves to new heights sequentially. We have left the exploration stage and are fully in the growth phase of this project, which is proving to be economically among the best Mississippian acreage anywhere. Steady consistent results at this pace of development will drive our growth in revenues and cash flows predictably for a very long time."
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
Safe Harbor Statement
The information in this release includes certain forward-looking statements as defined by the Securities and Exchange Commission that are based on assumptions that in the future may prove not to have been accurate. Those statements and Osage Exploration and Development, Inc. are subject to a number of risks, including production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others.
Osage Exploration and Development, Inc.
Kim Bradford, President and CEO
Jack Zedlitz, VP of Corporate Development
KEYWORDS: United States North America California Oklahoma
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