Source: Osage Exploration and Development
Osage Exploration and Development, Inc. (OTCBB: OEDV) has now increased its land position to over 9,000 net mineral acres of leases either executed or committed in its Nemaha Ridge Mississippian prospect in Oklahoma.
“We have had tremendous success in acquiring a concentrated land portfolio in what is arguably the most exciting onshore oil play in America,” stated Kim Bradford, President and CEO. “Based on the data that we have seen, the economics of the horizontal Miss surpasses that of any other domestic play today. With the current offshore drilling moratorium and the volatile tensions in the Middle East, the desirability of operating in Oklahoma cannot be overstated.”
SandRidge Energy is in the process of creating a Royalty Trust for some of its Mississippian acreage which has the potential to re-price the entire play similar to what we saw in the Eagle Ford Shale. Eagle Energy Company of Oklahoma, LLC has opened a data room to offer approximately 60,000 acres of its horizontal Miss position, which also has the potential to set a new high water mark in valuation through a public transaction.
"Osage believes that it is firmly positioned to take full advantage of not only the superior economics of the play, but also a potential valuation surge similar to what occurred in the other resource-type plays around the country like the Bakken, the Marcellus, the Eagle Ford and others,” said Bradford.
The company's current focus is on building a significant onshore US oil asset in the Oklahoma Mississippian, which can be exploited through the horizontal drilling and multi-stage hydraulic fracturing technologies that are on the cutting edge of oil and gas development today. Not only do these technologies make possible the production of oil from formations never before thought productive, but the economics of doing so have improved dramatically as well.
Osage Exploration's primary target in Oklahoma is the serendipitously named Osage section of the Mississippian aged carbonate formation that lies between the Pennsylvanian and Devonian aged rocks. The Mississippian is a fractured carbonate that has been historically drilled vertically in many areas of Oklahoma, most notably in the Sooner Trend.