Osage Exploration and Development Announces 2013 Financial and Operational Results

Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, reported today its operational and financial results for 2013. The Company reported year-over-year triple digit growth in oil production, natural gas production, proved reserves, and revenues.

The full text of the Company’s Form 10-K for 2013 is available on the SEC EDGAR system or on Osage’s website: http://www.osageexploration.com.

Operational Results

Osage’s net oil production was up 246% year-over-year to 76,409 barrels, and the Company’s natural gas production grew 141% to 149,738 Mcf.

Reserve Growth

The value of Osage’s proved reserves increased to $40.9 million at year-end 2013 from $14.8 million at year-end 2012, a 176% gain year-over-year.

Financial Results

Excluding revenues from the Company’s Colombian assets, Osage’s revenues from oil and gas sales increased 255% over the prior year from $2.3 million to just over $8 million in 2013.

Excluding the gain on sale and results of Colombian discontinued operations, Osage reported adjusted EBITDA of $3.9 million compared to $218,500 in 2012.

Management Comments

"Osage’s financial and operational results for 2013 were very solid with high growth rates in production, reserves, and adjusted EBITDA,” stated Jack Zedlitz, Vice President of Corporate Development at Osage Exploration and Development. “A truer indicator of Osage’s growth prospects will be revealed this year as we begin to operate our own Mississippian and Woodford wells in Logan County, and begin drilling in Pawnee and Coal Counties. While our 2013 results were very good, we believe that in the future we will do better.”

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.

*GAAP Reconciliation

In addition to revenue and net income determined in accordance with GAAP, we have provided a reconciliation of our EBITDA in this release. EBITDA is a non-GAAP financial measure that we use as a supplemental measure of our performance. EBITDA is not a measurement of our financial performance under GAAP and should not be considered as an alternative to revenue, net income, operating income or any other performance measure derived in accordance with GAAP. It should not be assumed that EBITDA is comparable to similarly named figures disclosed by other companies. We define EBITDA as net income before the effects of the items listed in the table above. Management believes Adjusted EBITDA is a useful measure of performance, along with net income (loss).