Osage Kicks Off Nemaha Ridge Drilling

Osage Exploration and Development  is pleased to announce the spudding of the Wolfe 1-29H on December 10, 2011 in Logan County, Oklahoma. The Wolfe is the first horizontal Mississippian well to commence drilling in the Company's previously announced 20,000 acre Nemaha Ridge project in conjunction with its partners, Slawson Exploration Company and US Energy Development Corporation.

The second well in the project, the Krittenbrink 2-36H, is scheduled to spud, or commence drilling, immediately following the completion of the Company’s second disposal well. The rig that will drill the second disposal well and the second horizontal Mississippian well is scheduled to arrive on location this week.

"To date, our story is one of execution: identifying early the potential of our acreage in the play, leasing a large acreage footprint at a low cost of entry, joint-venturing with a top tier operating partner, and now, commencement of drilling the initial wells on it," stated Kim Bradford, Chairman and CEO of Osage Exploration and Development. “The capability of Slawson and US Energy is beyond question, and their dedication of talent and resources is a testament that their enthusiasm and confidence in the Nemaha Ridge Project matches our own.”

"It should be clear that with this level of activity so early in the project, we and our partners believe that we can bring oil to the surface right away. We have a large acreage block that will require many wells to be drilled over the next three years, so we plan to drill fairly aggressively from the very beginning," stated Greg Franklin, Vice President of Exploration and Director.