Colombia
Colombian Assets
In 2008, Osage acquired 100% of the membership interests in Cimarrona Limited Liability Company, which owned a 9.4% interest in both the Guaduas field in Colombia and the Guaduas-La Dorada Pipeline. The Guaduas field, located in the Middle Magdalena Valley, consists of seven producing wells in a 30,665 acre block. The Guaduas-La Dorada Pipeline provides a critical 32-mile link across the Andes, providing our pipeline customers a substantial cost savings compared to truck transportation. Pipeline capacity is approximately 35,000 barrels of oil per day.
The oil properties and the pipeline are both operated by Pacific Rubiales, which owns 90.6% of each asset.
The significance of the Colombian assets to Osage goes well beyond the revenues and cash flows they have generated. Together, they have enabled Company management to operate without prematurely burdening the company with debt or issuing equity at overly dilutive valuations. With the cash flows that the Colombian assets provided Osage, management had the time to assemble a portfolio of high-quality domestic exploration properties. The same cash flows continue to cover most or all of Osage's overhead expense today.
In 2008, Osage acquired 100% of the membership interests in Cimarrona Limited Liability Company, which owned a 9.4% interest in both the Guaduas field in Colombia and the Guaduas-La Dorada Pipeline. The Guaduas field, located in the Middle Magdalena Valley, consists of seven producing wells in a 30,665 acre block. The Guaduas-La Dorada Pipeline provides a critical 32-mile link across the Andes, providing our pipeline customers a substantial cost savings compared to truck transportation. Pipeline capacity is approximately 35,000 barrels of oil per day.
The oil properties and the pipeline are both operated by Pacific Rubiales, which owns 90.6% of each asset.
| QUARTERLY REVENUES NET TO OSAGE FROM COLOMBIA (In $US) | ||||||||
|---|---|---|---|---|---|---|---|---|
| 1Q 11 | 2Q 11 | 3Q 11 | 4Q 11 | 1Q 12 | 2Q 12 | 3Q 12 | 4Q 12 | |
| Oil Revenues | 363,266 | 628,795 | 371,987 | 503,558 | 552,493 | 317,640 | 582,130 | 546,905 |
| Pipeline Revenues | 268,233 | 322,828 | 472,141 | 531,687 | 469,891 | 417,769 | 508,505 | 460,678 |
| Total Colombian Revenues | 631,499 | 951,623 | 844,128 | 1,035,245 | 1,022,384 | 735,409 | 1,090,635 | 1,007,583 |
The significance of the Colombian assets to Osage goes well beyond the revenues and cash flows they have generated. Together, they have enabled Company management to operate without prematurely burdening the company with debt or issuing equity at overly dilutive valuations. With the cash flows that the Colombian assets provided Osage, management had the time to assemble a portfolio of high-quality domestic exploration properties. The same cash flows continue to cover most or all of Osage's overhead expense today.