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.

Drilling Status

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.

Quarterly Production

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.

Reserve Report

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 …read more
Source: FULL ARTICLE at DailyFinance