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Osage Ramps Up Woodford, MissLime Production

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   |    Friday,May 16,2014

Osage Exploration and Development, Inc. has reported its operational and financial results for the quarter ended March 31, 2014. 

Highlights:

  • Production of 37,063 barrels of oil equivalent, 123% higher than the period ended March 31, 2013;
  • Revenue from continuing operations of $2.6 million, a 118% increase over the prior year;
  • Adjusted EBITDA of $1.38 million, up 145% over the first quarter of 2013; and,
  • Commencement of the Company’s operated drilling program in Logan County, Oklahoma.

Mr. Kim Bradford, Chairman and CEO of Osage Exploration, commented: "We are pleased with our operational and financial results during a quarter in which we added production from small interests in two wells. When we achieved the asset partition in December of 2013 giving Osage operational control of a majority of its acreage in Logan County, we understood then that all eyes would be appropriately focused on the results of our first operated wells. Both wells are scheduled for fracture stimulation toward the end of May, and we anticipate results from those wells thereafter, followed by results from our third and fourth wells.

"Our confidence in the quality of this asset has only increased with the availability of new data, and we maintain our belief that the period beginning in the second half of this year is going to be one of rapid growth and positive change for Osage."

Operational Results

Osage’s oil production during the first quarter of 2014, net of royalties, was 22,330 BBLs, an increase of 10,170 BBLs, or 83.6%, over the three months ended March 31, 2013. The Company’s natural gas production was 77,627 thousand cubic feet for the three months ended March 31, 2014, 192.2% over the same period in 2013. Osage’s average selling price per barrel of oil during the first quarter of this year was $97.16.

Financial Results

Revenues from continuing operations increased 117.6% from $1.2 million during the first quarter of 2013 to $2.6 million during the same period in 2014. The average production cost per barrel of oil equivalent for the three months ended March 31, 2014 was $12.77.

Adjusted EBITDA* was up 145% year-over-year from $564,541 during the first quarter of 2013 to $1,381,652 during the same period in 2014.