Osage Exploration and Development, Inc., an independent oil and gas exploration and production company, announces an operational update regarding the Company’s acquisition and development efforts in Colombia.
Osage has worked the past 18 months to uniquely position itself to capitalize on several high impact projects in Colombia. The Company currently produces approximately 120 BOPD from its Colombia and Oklahoma properties. In Colombia the Company has completed two joint ventures with well-established Colombian E&P operating companies including Gold Oil, plc (GOO:LSE), and Pacific Rubiales Energy (PEG:TSE). Respectively, these are the Rosablanca project, which consists of a 50% working interest in a 100,000 acre concession in the Middle Magdalena Valley that is on trend with several producing fields, the nearest of which is 6 miles away; and the Guaduas Field which consists of a 9.3% working interest in 75,558 acres with current gross production of 1,000 BOPD that also includes a 9.3% ownership interest in a pipeline that has transportation capacity of 20,000 Bbls/d.
In addition to these two properties, the Company has two other Colombian oil and gas joint ventures currently under letters of intent with a major Colombian E&P operating company. All told, these four properties encompass over 268,000 gross acres (over 420 square miles) with estimated total proven reserves of 0.4 MMBbls and possible reserve potential of over 50 MMBbls based on internal Company engineering and estimates.
The first LOI is on a project in the Middle Magdalena Valley encompassing over 25,000 gross acres located in close proximity to a number of analogous wells that initially produced on average 400 BOPD with minimal decline. The second LOI is on a project in the Llanos Basin that encompasses over 55,000 acres that will target a 6,000’ deep channel sand target located within 30 miles of analogous channel sands that are producing on average 14,000 BOPD.
April 14, 2008:
Osage announced that it had acquired 100% of Cimarrona LLC which owns a 9.3% interest in the producing Guaduas oil field in Colombia. The Guaduas Field is made up of the Dindal and Rio Seco blocks in the prolific Middle Magdalena Valley. The acquisition also includes 9.3% of a pipeline that can transport up to 20,000 bbls/day. The remaining 90.6% interest in both assets is held by Pacific Rubiales Energy (PEG:TSE), one of the largest independent Exploration and Production companies in Colombia.
“Osage has now established long term reserves and production in Colombia and will participate in the pipeline revenues as well. With this acquisition and our drilling commitments, we are solidly on schedule to achieve the substantial growth in reserves and cash flow in 2008 that we are seeking,” stated Greg Franklin, VP Exploration.
“The value in working with Pacific Rubiales Energy cannot be overstated. They have executed a tremendous acquisition strategy combined with superb exploration, and we can certainly learn from their experience. What Pacific has accomplished is clearly a blueprint for us and we are pleased to have been welcomed by such an impressive team,” stated Kim Bradford, President and CEO.
March 14, 2008:
Osage announced that it had signed a Letter of Intent and issued a $100,000 cash deposit to acquire a minority interest in a producing oil field in Colombia. Osage anticipates closing the transaction within the next thirty days, at which time additional information about the property and the transaction will be disclosed. “This acquisition will immediately make us cash flow positive. This new field will yield roughly 115 barrels a day net to Osage’s interest at current production rates before operating expenses. Following our joint venture on the Rosablanca concession last year, this is another example of our commitment to defining Osage as a Colombian-focused oil exploration and production company,” stated Kim Bradford, President and CEO.
“Drilling Osage’s big exploration targets will drive our value and is clearly our focus in Colombia this year, but we remain keenly interested in all Colombian oil opportunities with high quality partners,” said Greg Franklin, VP Exploration.
“This transaction is a credit to the entire team at Osage,” according to Ran Furman, CFO, “not only have we extensively reviewed the geological aspects of this field, we also anticipate additional tax and corporate efficiencies by combining this operation with our own established Colombian infrastructure.”
February 27, 2008:
Osage announced that it had been approved for trading on the OTC Bulletin Board effective immediately.
“We have reached yet another milestone by migrating our listing to the OTC Bulletin Board. Our effort to provide shareholders and the financial community with transparency of our operations has resulted in a listing that will generate broader exposure for Osage,” stated Kim Bradford, Chairman and CEO of Osage Exploration and Development, Inc.
August 10, 2007:
Osage announced a major Colombian acquisition in partnership with Gold Oil Plc (GOO: LSE) and Empesa, a private Colombian petroleum consulting company in the prolific Middle Magdalena Basin.
Osage has farmed-in to a 50% interest in the approximately 165 square mile Rosablanca concession awarded by the Agencia Nacional de Hidrocarburos (ANH) to Gold Oil, plc in June, 2007. Osage will pay all costs associated with drilling the first well on the Rosablanca project to earn its interest. Gold Oil will retain a 40% share, and Empesa will remain as a 10% participant.
"This announcement is the culmination of months of planning and geological evaluation designed to transition Osage into a Colombian exploration and development play. In cooperation with our highly competent and experienced partners Gold Oil and Empesa, Osage has established a large exploration footprint with multiple identified targets in one of the most productive onshore basins in Colombia. The directors, consultants, and legal team at Osage have worked tirelessly in pursuit of this acquisition to build value for our shareholders. We are especially grateful for the leadership of Managing Director Gary Moore of Gold Oil in finalizing this transaction with us," stated Kim Bradford, Chairman and CEO.
"Our corporate vision for Osage involves large targets in highly prospective areas in Colombia, and the acquisition of the Rosablanca certainly fulfills this mandate. We will continue to evaluate Colombian opportunities seeking additional high quality projects to complement the Rosablanca," stated Greg Franklin, Director.