Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced today preliminary production results from the McNally 1-29MH and the McNally 1-20WH, located in Logan County, Oklahoma.
The McNally 1-29MH, a horizontal Mississippian well in Section 29-17N-2W, has reached a one-day production rate of 695 BOE. The product mix is 84% crude oil and 16% natural gas. Osage has approximately a 58% Working Interest in the well.
The McNally 1-20WH, a horizontal Woodford well in Section 20-17N-2W, has reached a one-day production rate of 611 BOE. The product mix is also 84% crude oil and 16% natural gas. Osage has approximately a 76% Working Interest in the well.
"Since Osage took operational control in Logan County we have reiterated that the second half of 2014 would be a time of great change for our shareholders. We ended the first half of this year producing about 425 barrels of oil equivalent net to Osage from 43 non-operated wells. With only four Osage-operated wells added to that total, we have more than tripled our daily production to 1,392 barrels of oil equivalent, far in excess of the target year-end exit rate that we promised publicly just 45 days ago," stated Kim Bradford, Chairman and CEO.
"Our Mississippian well, while still early in its production life, is well ahead of the type curve and promises to be an exceptional well with early payback. Our Woodford well is without a doubt the best Woodford well drilled in southern Logan County, and better by far than any Woodford well drilled by any offset operator outside of Devon Energy. The impact of this is enormous to the Osage shareholder because it proves our assertion that we can drill multiple Mississippian wells and multiple Woodford wells in every section that we operate," stated Jack Zedlitz, VP Corporate Development.
"The quality of our rock has never been seriously questioned, but it took the right operational team with the right philosophy to bring everything to fruition," stated Greg Franklin, Osage’s Vice President of Exploration and Senior Geologist.
"Looking beyond these exceptional results, we already have two more Mississippian wells drilled which we will frac later this month, and our next two drilling pads under construction to move our rig to sequentially. We have built a team of exceptional individuals to execute this plan and our results speak for themselves. Even with the high level of production that we are seeing, our primary focus is on cutting drilling and completion costs, which is crucial in this volatile commodity price environment. While these are still the early days of our development program, we have put exclamation points on our geology, our team, and our ability to deliver results, all to the benefit of our shareholders," concluded Kim Bradford.