Osage Exploration and Development Announces First Quarter 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 the quarter ended March 31, 2015. The full text of the Company’s Form 10-Q is available on the SEC EDGAR system or on Osage’s website: http://www.osageexploration.com. Highlights include:

• Production of 82,096 barrels of oil equivalent, 122% higher than the period ended March 31, 2014;
• Revenue from operations of $2.9 million; and,
• Adjusted EBITDA of $1.85 million, up 33.9% over the first quarter of 2014.

Operational Results

Osage’s oil production during the first quarter of 2015, net of royalties, was 53,467 BBLs, an increase of 31,137 BBLs, or 139.4%, over the three months ended March 31, 2014. On a Barrel of Oil Equivalent (BOE) basis, Osage’s quarterly production of 82,096 BOE was 122% greater than during the same period in 2014.

Financial Results

Revenues from operations during the three months ended March 31, 2015 were $2.9 million versus $2.6 million during the same period in 2014. The average production cost per barrel of oil equivalent (“Production Cost/BOE”) for the three months ended March 31, 2015 was $8.55 compared to $12.77 Production Cost/BOE one year ago.

Adjusted EBITDA* was up 34% year-over-year from $1.38 million during the first quarter of 2014 to $1.85 million during the same period in 2015.

Management Comments

“With production growing by 122% but total revenues only 10% higher, the impact of the recent decline in oil prices is stated in black and white terms,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration. “The numbers say that our Logan County asset is economically superior, and that we are operating it in a highly efficient manner. We are fighting a difficult pricing environment, but this team is tenacious in its efforts to provide a brighter future to its shareholders.”

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.

*Adjusted EBIDTA / 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 (loss), 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).

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