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Osage Spuds Second Mississippi Lime Well

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Osage Exploration and Development, Inc., is pleased to announce the spudding of the Krittenbrink 2-36H on January 8, 2012 in Logan County, Oklahoma two days after the completion of the Company's second disposal well. The Krittenbrink 2-36H is the second horizontal Mississippian well to commence drilling in conjunction with its partners, Slawson Exploration Company and US Energy Development Corporation.

Osage is also pleased to announce that total measured depth of 9,917 feet has been reached on the Wolfe 1-29H, the first horizontal Mississippian well in the Company's previously announced 20,000 acre Nemaha Ridge project.

"Osage is methodically achieving its early goals," stated Kim Bradford, Chairman and CEO of Osage Exploration and Development. "Additionally, as the drilling of our…

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