Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, announced a one-day peak rate on the Everest 1-9MH and 30-day production rates from two previously announced Horizontal Mississippian wells, the George Plagg 1-18MH and the George Plagg 1-19MH, located in Logan County, Oklahoma.
Peak One-Day Rate on Everest 1-9MH
Osage’s most recent well to be put into production, the Everest 1-9MH, has reached a one-day peak rate of 850 BOE, with a product mix of approximately 78% crude oil and natural gas liquids, and 22% natural gas. The Everest 1-9MH, located in Section 9-17N-2W, is Osage’s seventh operated well to be brought into production. The Company has a working interest of approximately 65% in the well.
Initial 30-Day Rate on George Plagg 1-18MH
In its first thirty days of production, the George Plagg 1-18MH, a horizontal Mississippian well in Section 18-17N-2W, has produced 21,028 BOE. Production from this well was 91% higher than the average or “type” Mississippian well in the area, which projects production of 11,000 BOE during the same period. In its first thirty days, the product mix was 86% oil and natural gas liquids, and 14% natural gas. Osage has approximately a 49% Working Interest in the well.
Peak 30-Day Rate on George Plagg 1-19MH
Similarly, the George Plagg 1-19MH, a horizontal Mississippian well in Section 19-17N-2W, produced 17,466 BOE during its peak thirty day period for oil and gas production. Production from the George Plagg 1-19MH was 59% higher than the type well projection during the same period, and yielded a product mix of 88% crude oil and natural gas liquids, and 12% natural gas. Osage has approximately a 63% Working Interest in the well.
Promotion of Mr. Jack Zedlitz to Executive Vice President
Separately, Osage announced the promotion of Mr. Jack Zedlitz to the position of Executive Vice President, effective January 1, 2015. Mr. Zedlitz’s responsibilities will now include asset acquisition and divestitures, and leading the Company’s capital markets activities. Mr. Zedlitz will report to Osage’s Chairman and CEO, Mr. Kim Bradford.
“With our most recent well, Osage has substantially all of its acreage held by production. We now have interests in 56 wells in 45 sections, have no obligation to continue drilling, but can do so opportunistically,” stated Mr. Kim Bradford, Osage’s Chairman and CEO.
“Our operated acreage is yielding results that are much more consistent than our non-operated sections, and, taking the George Plagg wells as an example, vastly superior to the type curve. The quality of our geology has always played a key role, but considering the consistent success rate we are achieving, our operating practices and methods also should be credited. Though this reservoir has baffled and defeated others, we understand it, and we see the long-term value of operating it with our particular method, which is different than anyone else in the area. To reiterate our past statements, the consistency of our results contradicts conventional wisdom about the Horizontal Mississippian being a statistical play.”
Mr. Bradford continued, “Without the obligation to continue drilling to HBP our acreage, Osage intends to position itself for strategic acquisitions of operated assets. The promotion of Jack Zedlitz to Executive Vice President is a key component of Osage’s growth strategy. Jack was with Osage before we started drilling as a non-operator, and he has been an integral force in Osage’s operations. Jack has been given the directive of positioning Osage to emerge from this lower-priced commodity cycle as a larger, stronger company.”