Osage Exploration and Development, Inc. Reports Financial and Production Results for the Second Quarter Ended June 30, 2013; Provides Update on Field Operations
Osage Exploration and Development, Inc. reported financial and production results for the second quarter ended June 30, 2013. For the quarter, the company's revenues of $2.4 million were generated in the three months ended June 30, 2013, up 75.8% when compared to revenues collected in the corresponding period in 2012. Operating income was $1.2 million against a loss of $274,563 for the period ending June 30, 2012.
The company participated in drilling ten wells during the second quarter, bringing the total number of wells in which Osage has an interest to twenty-nine as of June 30, 2013. Additionally, the company reported average daily production roughly in-line with first quarter production.
Improved field operations and production from wells brought online in the third quarter have resulted in large gains in oil production in Osage's Nemaha Ridge project. As of August 12, 2013 oil production on Slawson-operated wells has more than doubled in the six weeks since the end of the second quarter to a one-day rate of 2,000 barrels of oil per day plus gas, bringing Osage's net oil production from those wells to over 400 barrels of oil per day plus gas. Additionally, production from five wells operated by Devon, Stephens Production Company, and Sundance Energy in which Osage has a working interest bring the company's current net daily production rate from the Nemaha Ridge Project to roughly double Osage's average production rate in the second quarter.
Osage Exploration and Development, Inc. (Osage) is an oil and natural gas exploration and production company with reserves and existing production in the state of Oklahoma. The Company operates in Oklahoma City, Oklahoma. The Company has operating projects in the Mississippian and Woodford formations. The Mississippian formation is located on the Anadarko Shelf in northern Oklahoma and south-central Kansas. The top of this expansive carbonate hydrocarbon system is encountered between 4,000 and 6,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow Sand and the Devonian-aged oily Woodford Shale formations. The Woodford Shale is an energy resource with the potential for unconventional oil and gas production. The Woodford Shale formation is located mainly in southeastern Oklahoma in the Arkoma Basin. The Woodford shale lies directly under the Mississippian.
Osage Exploration and Development, Inc. Reports Financial and Production Results for the Second Quarter Ended June 30, 2013; Provides Update on Field Operations