Osage Exploration and Development, Inc. Reports Earnings and Production Results for the Third Quarter Ended September 30, 2013
November 19, 2013 at 02:00 pm
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Osage Exploration and Development, Inc. reported earnings and production results for the third quarter ended September 30, 2013. Osage reported an increase in revenues from continuing operations of 248% to $2.7 million during the third quarter of 2013 from $764,491 during the same period of 2012 primarily due to large quarter-over-quarter and year-over-year production increases in Osage's Nemaha Ridge project in Logan County, Oklahoma. Operating income from continuing operations for the three months ended September 30, 2013 grew to $955,429 compared to a loss of $40,298 during the same period in 2012. The improvement in operating income is as a result of revenue growth vastly exceeding the increase in total operating expenses. Adjusted EBITDA from continuing operations was the high in the company's history adjusted for one-time items, growing approximately 878% to $1.57 million for the quarter compared to $160,436 for the same period in 2012. Net loss was $198,812 against net income of $250,976 a year ago.
Average daily production from ongoing operations was 335 Barrels of Oil Equivalent Per Day ("BOEPD") net of royalties during the third quarter of 2013 with a product mix composed of approximately 83% crude oil. During the same period of 2012, production from ongoing operations averaged 119 BOEPD net of royalties. Compared to the second quarter of 2013, average daily production from continuing operations grew 73.5% in just 90 days from approximately 193 BOEPD to 335 BOEPD. Osage exited the quarter with a monthly average daily production rate, gross of royalties, of approximately 560 BOEPD.
Osage Exploration and Development, Inc. (Osage) is an oil and natural gas exploration and production company with reserves and existing production in the state of Oklahoma. The Company operates in Oklahoma City, Oklahoma. The Company has operating projects in the Mississippian and Woodford formations. The Mississippian formation is located on the Anadarko Shelf in northern Oklahoma and south-central Kansas. The top of this expansive carbonate hydrocarbon system is encountered between 4,000 and 6,000 feet and lies stratigraphically between the Pennsylvanian-aged Morrow Sand and the Devonian-aged oily Woodford Shale formations. The Woodford Shale is an energy resource with the potential for unconventional oil and gas production. The Woodford Shale formation is located mainly in southeastern Oklahoma in the Arkoma Basin. The Woodford shale lies directly under the Mississippian.