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Osage Exploration and Development, Inc. ("Osage") is a publicly traded E&P company whose areas of interest have historically been Oklahoma and Texas, however over the past year has assembled a portfolio of international opportunities with a focus in Colombia for oil production. In January 2005, Osage acquired a 100% working interest in 480 acres in the Hopper and Osage leases in Osage County Oklahoma from which the Company currently produces approximately 20 BOED. The Osage County assets have been evaluated by a third party engineer to have Proven Producing and Proved Behind Pipe reserves of 193.1 MBOE (net) with a PV-10 of $6.2 million ($60.00/Bbl and $6.00/Mcf price deck used). In January 2006, Osage acquired a 100% working interest in a gas property in Hansford County, Texas. The Hansford County assets have approximately 2.1 MMcf (net) of gas with a PV-10 of $5.3 million ($60.00/Bbl and $6.00/Mcf price deck used).
Osage recently entered into a joint venture with Gold Oil, Plc (LSE:GOO) and EMPESA to farm into a 50% working interest in the 100,000 acre Rosa Blanca concession in Colombia which Osage will operate. The concession consists of 440 square kilometers on which there has been a significant amount of seismic data shot, processed and reviewed with four identified structural targets. All of the seismic data was shot and prepared by GHK out of Oklahoma City. The targeted formation in the Rosa Blanca is on trend with several producing fields, the nearest only six miles away. Osage owns 50% of the Rosa Blanca, Gold Oil owns 40% and EMPESA owns 10%. As part of the joint venture agreement, Osage will operate the concession.
Balanced International and Domestic Project Portfolio
Osage has a diversified portfolio of domestic and international projects. The Company's strategy is to capture through the company's existing domestic properties continued revenue and cash flow and acquire and develop new exploration and development properties in Colombia with proven joint venture partners.
Experienced Management Team
The three members of the Company's senior management team bring together a combination of capital markets and oil and natural gas exploration, development and production experience which will be highly leverageable to the future development of its existing operations domestically and internationally.
Focused Strategy
Osage's mission is to consistently grow shareholder value by capturing unrecognized value associated with certain oil and gas assets through the efforts of its multi-disciplined team. Osage's business plan is to acquire producing and non producing properties and focus on projects that can have significant economic impact, emphasizing exploitation and enhancement activities in addition to exploration. It also seeks to expand the scope of its operations by diversifying its development and exploratory efforts, both inside and outside its current areas of operation, focusing on established geological trends in which it can use the engineering, operations, financial and technical expertise of its entire team.
Strong Colombian Geological Relationship
In addition to its senior management team, Osage has added experienced individuals for its Colombian operations through a relationship with EMPESA. The Colombian operational and consulting team have a combined 221 years in oil and gas exploration and development experience with both domestic and international oil companies, specifically in Colombia. The group is highly reputable and is comprised of eight engineers with strong oil and gas industry experience averaging over 30 years individually with major oil companies; including Exxon Mobil, Amoco, EcoPetrol, Occidental and Lukoil.
