Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced preliminary production results from two Horizontal Mississippian wells, the George Plagg 1-18MH and the George Plagg 1-19MH, located in Logan County, Oklahoma.
The George Plagg 1-18MH, a horizontal Mississippian well in Section 18-17N-2W, has reached a peak one-day production rate of 892 BOE. The product mix is 90% crude oil and natural gas liquids with 10% natural gas. Osage has approximately a 49% Working Interest in the well.
The George Plagg 1-19MH, a horizontal Mississippian well in Section 19-17N-2W, has reached a one-day production rate of 746 BOE. The product mix is 94% crude oil and natural gas liquids with 6% natural gas. Osage has approximately a 63% Working Interest in the well.
“Since Osage began drilling in Logan County in 2012, we have constantly pointed to a singular fact: that we had put together the best Mississippian acreage in the play. Once we gained operational control late last year, we have been talking about another key attribute: that we have put together a premier Operating team to execute our plans,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration. “Today you see the culmination of those two things, as these results are among the very best achieved by anyone to date in this play. Sequentially, Osage has brought wells online that have produced 611 BOE, 695 BOE, 746 BOE, and 892 BOE as peak IP rates. These results are blowing out all projections and predictions to date.
"The conventional wisdom is that the Horizontal Mississippian is a statistical play and that for every good well, you will get a less than good well. That may be true across the width and breadth of the play, but Osage's results seem to indicate that our application of the science has led us to a sweet spot, which is what we have asserted all along."
Mr. Bradford continued, "I am personally proud of our results, but even more proud of the performance of the entire Osage team. We hold a tremendous acreage position, we drill our wells fast and accurately, we design and execute our fracs as well as anyone and take a very restrained approach to production. I expect to continue to set new high water marks going forward."