| | | Ed,
I believe you've figured it pretty close. I spoke with Investor Relations a few weeks ago. They hinted at the goal of refinancing the Apollo loan with a bank line in the fall, sometime after the prepayment penalty dropped.
As for the electrical submersible pumps, I believe that's the main reason for the electrical grid build out. Today's press release (see below) also supports your analysis about the artificial lift. They announced some great results from putting one of their wells on an ESP. "the Mallard 1-16H, which did not produce at a high level early on, has now made more than oil in the last week than it did in its first two months of production"
We can see the path forward, but they still have to execute. They need to finish the electrical grid to get more of these wells on an ESP. Then, with the increased production, cash flow and reserves that should come from the ESP(s), they need to refinance the Apollo debt. Those are the immediate hurdles. Let's see how well Kim Bradford can run the hurdles. I'm betting he can.
Byron
August 19, 2013
Osage Exploration & Dev Inc., Announces Initial Production of 705 Barrels of Oil Per Day On Horizontal Mississippian Well
SAN DIEGO, CALIFORNIA, August 19, 2013 - Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, today announced preliminary production results on the Mallard 1-16H Horizontal Mississippian well in Logan County, Oklahoma. The well, located in Section 16-17N-3W, achieved a 24-hour peak initial production rate of 705 barrels of oil plus associated natural gas on an electric submersible pump and a 48/64" choke.
Management Comments
"Further to our most recent press release, this well is a prime example of the progress in field operations that we are currently experiencing," stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OTCBB:OEDV). "Our new production superintendent and his expert consultants are having an immediate impact on every well that we have drilled so far, and have to be given credit for our recent advances. Under their tenure, the Mallard 1-16H, which did not produce at a high level early on, has now made more than oil in the last week than it did in its first two months of production. The well has just begun operating at its full potential. We firmly believe that our team's experience with the Mallard will be the rule and not the exception, and that the quality of this reservoir is not to be denied."
About Osage Exploration and Development, Inc.
Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, and executive offices in Bogotá, Colombia, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the U.S. and Colombia. osageexploration.com
Safe Harbor Statement
The information in this release includes certain forward-looking statements as defined by the Securities and Exchange Commission that are based on assumptions that in the future may prove not to have been accurate. Those statements and Osage Exploration and Development, Inc. are subject to a number of risks, including production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others.
Contacts
Osage Exploration and Development, Inc.
Kim Bradford, President and CEO
Phone: 619-677-3956
kbradford@osageexploration.com
Jack Zedlitz, VP of Corporate Development
Phone: 405-270-0989
jzedlitz@osageexploration.com |
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