In 2005 the Company purchased from Conquest Exploration Company, LLC and Esso Oil Company of Oklahoma certain producing oil and natural gas leases (Hopper-Osage lease) located in Osage County, Oklahoma for a total consideration of $103,177.

• Osage currently has a 100% interest in 480 acres

• To date, the Oklahoma property consists of 23 wells, 10 of which are producing

• Since Osage initiated the Redfork Waterflood, the production has increased by over 500%

• The Proved Developed Producing (PDP) and Proved Behind Pipe (BP) reserves have been estimated at 44,633 net barrels of oil @ $40.00 WTI

Osage plans to continue to develop this leasehold, and with proper modern engineering and extraction techniques, increase the current production in the future.