Osage Acquires Producing Field, Pipeline Assets
Osage Exploration and Development, Inc. has acquired 100% of Cimarrona LLC which owns a 9.4% interest in the producing Guaduas oil field in Colombia. The Guaduas Field is made up of the Dindal and Rio Seco blocks in the prolific Middle Magdalena Valley. The acquisition also includes 9.4% of a pipeline that can transport up to 20,000 bbls/day. The remaining 90.6% interest in both assets is held by Pacific Rubiales Energy (PEG-TSE), one of the largest independent Exploration and Production companies in Colombia.
"Osage has now established long term reserves and production in Colombia and will participate in the pipeline revenues as well. With this acquisition and our drilling commitments, we are solidly on schedule to achieve the substantial growth in reserves and cash flow in 2008 that we are seeking," stated Greg Franklin, VP Exploration.
"The value in working with Pacific Rubiales Energy cannot be overstated. They have executed a tremendous acquisition strategy combined with superb exploration, and we can certainly learn from their experience. What Pacific has accomplished is clearly a blueprint for us and we are pleased to have been welcomed by such an impressive team," stated Kim Bradford, President and CEO.
Osage Exploration and Development Inc. was exclusively advised by Energy Capital Solutions, LP ("ECS") out of Dallas, Texas on the Cimarrona, LLC acquisition. "ECS played a pivotal role in evaluating and helping us acquire this company," said Ran Furman, CFO, "their relationships and strategic advice were fundamental in closing this transaction."