Osage Drills 2nd HZ Mississippian Well

Osage Exploration and Development, Inc. announced the spudding of the Krittenbrink 2-36H on January 8, 2012 in Logan County, Oklahoma two days after the completion of the Company's second disposal well. The Krittenbrink 2-36H is the second horizontal Mississippian well to commence drilling in conjunction with its partners, Slawson Exploration Company and US Energy Development Corporation.

Osage is also pleased to announce that total measured depth of 9,917 feet has been reached on the Wolfe 1-29H, the first horizontal Mississippian well in the Company's previously announced 20,000 acre Nemaha Ridge project.

"Osage is methodically achieving its early goals," stated Kim Bradford, Chairman and CEO of Osage Exploration and Development.

"Additionally, as the drilling of our first two horizontal Mississippian wells progresses, we are witnessing a significant increase in both drilling and leasing activity by major producers adjacent to the Company's Logan County acreage. This activity is targeting both the Mississippian and more notably, the Woodford formations to which Osage also owns rights across its acreage block. We believe that this activity provides strong third-party validation of our geological thesis and points to the value of the multiple formations in the acreage block that we have assembled."

Greg Franklin, Osage's Vice President of Exploration, stated, "In order to optimize the results in our initial wells, we have been carefully studying the hydraulic fracturing and completion techniques utilized to date by the other significant players in the horizontal Mississippian play. We feel that as a result, we are oriented to achieve outstanding results in the early wells of this program."