Osage Exploration and Development, Inc. (OTCBB:OEDV), a domestic E&P company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, is pleased to release an Operational Update on its progress in the Nemaha Ridge Project in Logan County, Oklahoma.
The Davis Farms 2-5H began producing commercial volumes of oil during the second week of August, 2012 when a submersible pump was installed, after flowing naturally for the 24 days prior. Production continues to increase on a daily basis, and currently stands at 600 BOE/D. Approximately 85% of the produced volumes of hydrocarbons are oil. The oil cut currently stands at approximately 20% and is expected to climb as the volumes of frac fluids produced declines. Osage intends to announce a 30-day Initial Production number once the requisite period has passed.
The operational challenges on Osage’s second horizontal Mississippian well, the Krittenbrink 2-36H, have been resolved. The well began producing utilizing an electric submersible pump on a twenty-four hour basis in mid-August with no trace of sand in the downhole or surface equipment. This is the first time that the well has been able to produce continuously with no downtime in its history. Since August 15, 2012, the well has produced an average of 250 BOE/D, with approximately 75% of the produced hydrocarbons being oil. The oil cut on the Krittenbrink is currently at 17%, and is increasing on a daily basis. The overall production volumes are also trending upwards.
Osage and its partners, Slawson Exploration Company and U.S. Energy Development Corporation, continue to lease acreage in Logan County, Oklahoma. The companies have increased their dominant land position to over 30,000 net acres to date, with Osage owning 25% of the total net acres.
As of September, 2012, Osage and its partners anticipate having two rigs running continuously in the Nemaha Ridge Project. The partners plan to drill its first Woodford well by the first half of 2013, and are currently considering a vertical well to exploit yet another potentially prolific zone that has been encountered on electric logs.
