Osage Exploration and Development Announces Doubling of Credit Facility with Apollo Investment Corporation
$20 Million Facility Funds 2013 Capex Budget
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 that it has increased its existing drawdown credit facility with Apollo Investment Corporation (NASADQ:AINV) from $10 million to $20 million. The proceeds from the expanded facility will fully fund the Company's planned 2013 capital expenditures in its Nemaha Ridge project in Logan County, Oklahoma.
Mr. Kim Bradford, Chairman and CEO of Osage Exploration, commented, "Our lender, Apollo Investment Corporation, has been extremely supportive of our activities in Logan County over the last year. Since our initial agreement in April of 2012, Apollo made it clear to us that early success would translate into an expanded facility whenever Osage was ready. With the revenues from our first three wells surpassing the capital invested in those wells, Osage has amply demonstrated that we have the ability to efficiently invest drilling capital. Now that we are drilling at a pace well above of our initial goal of two wells per month, doubling the existing facility is the prudent move to make. We have eight wells in various stages of production, six more in flowback, three drilled and awaiting fracture stimulation, and three rigs drilling new wells now.
"Earning the confidence of one of the premiere private equity firms in the world and quickly achieving meaningful results sets us apart from our micro-cap peers. Our objective is to drill the Nemaha Ridge acreage into the Proved Producing reserve category as expeditiously as possible. With Apollo's support we have the ability to do so while still maintaining tremendous financial flexibility going forward."
Mr. Bradford continued, "I am extremely proud of the performance that the Osage team, our Operating partners, and our financial partners are realizing. Our challenge has been to transition from a one well per quarter project into executing an efficient, high rate sequential drilling plan. Together we have accomplished that operationally and financially in a seamless fashion."
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
Apollo Investment Corporation (NAS: AINV) is a leading provider of subordinated debt and equity capital to middle-market companies. We generate both current income and capital appreciation through debt and equity investments. AIC is managed by Apollo Investment Management and its corporate governance is provided by an independent board of directors. The company is registered with the SEC as a business development company under the Investment Company Act of 1940, which provides the company with structural advantages, including public liquidity and an advantageous tax structure. Our portfolio is comprised primarily of investments in subordinated loans and senior secured loans of private middle-market companies with equity interests such as warrants or equity co-investments. The value of our portfolio is determined by independent, third-party firms. Within the energy space, AIC is focused on $20 million to $200 million investments in oil and gas producers, oilfield service providers, midstream and alternative energy companies. http://www.apolloic.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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