Osage Exploration and Development Announces Second Quarter Earnings
Provides Update on Improvements in Field Operations and Production
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, reported financial results for the three months ended June 30, 2013 and provided an update on field operations. For the quarter, the Company reported a 75.8% increase in revenues of $2.4 million compared to the same period in 2012, and operating income of $1.2 million versus a loss of $274,563 for the period ending June 30, 2012.
Second Quarter Drilling and Production
Osage participated in drilling ten wells during the second quarter, bringing the total number of wells in which Osage has an interest to twenty-nine as of June 30, 2013. Additionally, the Company reported average daily production roughly in-line with first quarter production.
Improved Field Operations
Constraints imposed by the previously announced construction of an electrical grid and a gas gathering system to service the Nemaha Ridge project are being resolved as those construction projects near completion. While construction was ongoing, most new wells had been placed on an intermediate lift system with a lower production capacity. Since the end of the second quarter, eight of those wells have been placed on a higher capacity permanent lift system with substantially good early results.
Large Production Gains
Improved field operations and production from wells brought online in the third quarter have resulted in large gains in oil production in Osage's Nemaha Ridge project. As of August 12th, oil production on Slawson-operated wells has more than doubled in the six weeks since the end of the second quarter to a one-day rate of 2,000 barrels of oil per day plus gas, bringing Osage's net oil production from those wells to over 400 barrels of oil per day plus gas. Additionally, production from five wells operated by Devon, Stephens Production Company, and Sundance Energy in which Osage has a working interest bring the Company's current net daily production rate from the Nemaha Ridge Project to roughly double Osage's average production rate in the second quarter.
"Osage has redefined itself as a company over the past nine months by virtue of our high drilling rate. The twin bottlenecks of electrical service and gas gathering infrastructure in Logan County are largely behind us now. Also, as the scale of the project has demanded, we have brought in additional experienced talent to optimize our completion, production, and use of artificial lift technologies with an immediate and dramatic jump in production since the end of the second quarter. We believe that we have crossed an inflection point in our field operations," stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development, Inc. "In the next year, expect us to continue to evolve as our oil and gas production from our Nemaha Ridge project grows and as we target the beginning of exploration drilling in one or both of our new Mississippian and Woodford projects."
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
About Slawson Exploration Company, Inc.
Headquartered in Wichita, Kansas, with regional offices in Denver, Houston, and Oklahoma City, Slawson began oil and gas exploration in 1957.
About Stephens Production Company
Stephens Production Company (SPC) explores for and produces natural gas and oil. Acquired in the early 50's through a series of acquisitions, SPC is one of the largest privately owned, independent natural gas companies in the U.S. The company, headquartered in Fort Smith, Arkansas, is active in Arkansas, Oklahoma, Texas, Louisiana, Mississippi, Colorado, Wyoming and the Gulf of Mexico.
About Sundance Energy Ltd.
Sundance Energy Australia Ltd. (ASX: SEA) is a US onshore oil and gas company focused on the acquisition and development of large, repeatable resource plays.
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
The article Osage Exploration and Development Announces Second Quarter Earnings originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.