Osage Exploration and Development Inc (OEDVQ)

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OEDV-Osage Exploration and Development Announces 584 BOE IP Rate on First Operated Horizontal Mississippian Well
Date : 07/23/2014 @ 9:00AM
Source : Business Wire
Stock : Osage Exploration And Development, Inc. (QB) (OEDV)
Quote : 1.21 0.01 (0.83%) @ 2:21PM
Osage Exploration and Development Announces 584 BOE IP Rate on First Operated Horizontal Mississippian Well
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Osage Exploration And Development, Inc. (QB) (USOTC:OEDV)
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Today : Wednesday 23 July 2014


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 a peak twenty-four hour rate on its first operated Horizontal Mississippian well, the Whitten 1-3MH, of 584 Barrels of Oil Equivalent (BOE). The product mix was composed of approximately 65% oil, 15% Natural Gas Liquids (NGLs), and 20% natural gas. Osage has a 62.5% Working Interest in the well, which is located in Section 3 Township 16N 3W in Logan County, Oklahoma.

Management Comments

“Osage is off to a very strong start,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OTCBB:OEDV). “Our first operated well has only been in production for several days and has already given us a high peak rate. Further, we are producing a very high quality crude oil, and because of the Natural Gas Liquids content, our natural gas is selling for an approximate 65% premium over NYMEX spot pricing.

Our Woodford well, the Whitten 1-2WH, which is much "younger" because of the timing in flowback and pump installation, has already produced at a rate of over 340 BOEPD in its early days, which may trend higher based on the total fluid rate and oil cut that it is currently producing. Notably, the product mix from the Woodford well is oilier, and the natural gas is even richer. With an average working interest between the two wells of 69.15% versus our historic average of about 17%, at current rates, Osage’s share of the oil and gas from its first two operated wells increases the Company’s overall daily production by more than 50%.”

Mr. Bradford continued, “Our drilling operations continue. Since drilling the Whitten wells, we have drilled and completed a salt water disposal well. We have spudded our third producing well, the McNally 1-20WH, and will immediately commence drilling our fourth producer, the McNally 1-20MH within the next two weeks from the same pad. We are now preparing the next two-well location so that we can drill while fracture treating the two McNally wells without interruption. Osage will continue to drill systematically and efficiently in order to rapidly ramp oil production and reserves through the end of this year.”

About Osage Exploration and Development, Inc.

Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, 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. 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, 619-677-3956
President and CEO
[e-mail]
or
Jack Zedlitz, 405-270-0989
VP of Corporate Development
[e-mail]
http://www.osageexploration.com