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 159,717 net barrels of oil and 200,439 Net MCF of gas, providing discounted future cash flow of $6.2 million

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