Osage Signs LOI to Acquire Producing Field in Colombia
Osage Exploration and Development, Inc., an independent oil and gas exploration and production company, has signed a Letter of Intent and issued a $100,000 cash deposit to acquire a minority interest in a producing oil field in Colombia. Osage anticipates closing the transaction within the next thirty days, at which time additional information about the property and the transaction will be disclosed.
"This acquisition will immediately make us cash flow positive. This new field will yield roughly 115 barrels a day net to Osage's interest at current production rates before operating expenses. Following our joint venture on the Rosablanca concession last year, this is another example of our commitment to defining Osage as a Colombian-focused oil exploration and production company," stated Kim Bradford, President and CEO.
"Drilling Osage's big exploration targets will drive our value and is clearly our focus in Colombia this year, but we remain keenly interested in all Colombian oil opportunities with high quality partners," said Greg Franklin, VP Exploration and Director.
"This transaction is a credit to the entire team at Osage," according to Ran Furman, CFO, "not only have we extensively reviewed the geological aspects of this field, we also anticipate additional tax and corporate efficiencies by combining this operation with our own established Colombian infrastructure."