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
preliminary production results from the McNally 1-29MH and the McNally
1-20WH, located in Logan County, Oklahoma.
The McNally 1-29MH, a horizontal Mississippian well in Section
29-17N-2W, has reached a one-day production rate of 695 BOE. The product
mix is 84% crude oil and 16% natural gas. Osage has approximately a 58%
Working Interest in the well.
The McNally 1-20WH, a horizontal Woodford well in Section 20-17N-2W, has
reached a one-day production rate of 611 BOE. The product mix is also
84% crude oil and 16% natural gas. Osage has approximately a 76% Working
Interest in the well.
Management Comments
"Since Osage took operational control in Logan County we have reiterated
that the second half of 2014 would be a time of great change for our
shareholders. We ended the first half of this year producing about 425
barrels of oil equivalent net to Osage from 43 non-operated wells. With
only four Osage-operated wells added to that total, we have more than
tripled our daily production to 1,392 barrels of oil equivalent, far in
excess of the target year-end exit rate that we promised publicly just
45 days ago," stated Kim Bradford, Chairman and CEO.
"Our Mississippian well, while still early in its production life, is
well ahead of the type curve and promises to be an exceptional well with
early payback. Our Woodford well is without a doubt the best Woodford
well drilled in southern Logan County, and better by far than any
Woodford well drilled by any offset operator outside of Devon Energy.
The impact of this is enormous to the Osage shareholder because it
proves our assertion that we can drill multiple Mississippian wells and
multiple Woodford wells in every section that we operate," stated Jack
Zedlitz, VP Corporate Development.
"The quality of our rock has never been seriously questioned, but it
took the right operational team with the right philosophy to bring
everything to fruition," stated Greg Franklin, Osage’s Vice President of
Exploration and Senior Geologist.
"Looking beyond these exceptional results, we already have two more
Mississippian wells drilled which we will frac later this month, and our
next two drilling pads under construction to move our rig to
sequentially. We have built a team of exceptional individuals to execute
this plan and our results speak for themselves. Even with the high level
of production that we are seeing, our primary focus is on cutting
drilling and completion costs, which is crucial in this volatile
commodity price environment. While these are still the early days of our
development program, we have put exclamation points on our geology, our
team, and our ability to deliver results, all to the benefit of our
shareholders," concluded Kim Bradford.
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.
Copyright Business Wire 2014