Osage Exploration and Development Continues Accelerated Drilling Program

  Osage Exploration and Development Continues Accelerated Drilling Program

   Announces Spudding of Two Wells and Completion of One Well in November;
                 Multiple Completions Scheduled for December

Business Wire

SAN DIEGO -- December 03, 2012

Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent
exploration and production company focused on the Horizontal Mississippian and
Woodford plays in Oklahoma, updated the status of its accelerated drilling
program by announcing the spudding of two wells in the Company’s 31,000 acre
Nemaha Ridge project during the month of November. The two wells spudded in
November bring the number of wells drilled by the Company and its partners,
Slawson Exploration and U.S. Energy Development Corp., to seven. The McPhail
1-19H was spud on November 16th, and the Chambers 1-5H was spud on November
27th.

Additionally, Osage is pleased to announce the completion and commencement of
flowback on the Hopfer 1-17H, a Horizontal Mississippian well operated by
Devon Energy in which Osage owns a 14.6% working interest. The fracture
treatment of the Hopfer well was completed on November 25th, and the well is
currently flowing back fluids used in the hydraulic fracture of the wellbore.
The Devon Hopfer location is on the section immediately adjacent to Osage's
two McPhail wells.

Regarding planned completions, Osage intends to complete three wells by
hydraulic fracture treatment during the month of December: the Krittenbrink
1-1H, the McPhail 2-18H, and the McPhail 1-19H.

Management Comments

Addressing the current drilling program, Mr. Kim Bradford, Chairman and Chief
Executive Officer of Osage Exploration and Development, stated, “Our early
results have justified the acceleration in our drilling program which is
designed to hold progressively over 100 sections by production over the next
few years. The increase in our drilling rate will have a significant impact on
Osage’s production, revenue, and reserves. With several well results expected
in January, and more to come on a monthly basis thereafter, 2013 will be a
year of radical transformation for Osage.”

About Osage Exploration and Development, Inc.

Based in San Diego, California, with production offices in Oklahoma City,
Oklahoma, and executive offices in Bogotá, Colombia, Osage Exploration and
Development, Inc. is an independent exploration and production company with
interests in oil and gas wells and prospects in the U.S. and Colombia.
http://www.osageexploration.com

About Slawson Exploration Company, Inc.

Headquartered in Wichita, Kansas, with regional offices in Denver, Houston,
and Oklahoma City, Slawson began oil and gas exploration in 1957.
http://www.slawsoncompanies.com/exploration.html

About U.S. Energy Development Corporation

U.S. Energy Development Corporation was formed in 1980 as a successor to
Oilmark & Company, Inc., founded in 1978. The company has consistently been
ranked among the Top 50 Independent Oil & Natural Gas Drillers in the United
States and is one of the largest drillers in both New York and Pennsylvania.
Since 1980, U.S. Energy has acted as operator with respect to the drilling of
more than 2,500 wells. http://www.usedc.com/

About Devon Energy Corporation

Devon Energy Corporation is an Oklahoma City-based independent energy company
engaged in oil and gas exploration and production. Devon is a leading
U.S.-based independent oil and gas producer and is included in the S&P 500
Index. http://www.devonenergy.com/

Safe Harbor Statement

The information in this release includes certain forward-looking statements as
defined by the Securities and Exchange Commission that are based on
assumptions that in the future may prove not to have been accurate. Those
statements and Osage Exploration and Development, Inc. are subject to a number
of risks, including production variances from expectations, volatility of
product prices, inability to raise sufficient capital to fund its operations,
environmental risks, competition, government regulation, and the ability of
the Company to execute its business strategy, among others.

Contact:

Osage Exploration and Development, Inc.
Kim Bradford, President and CEO
Phone: 619-677-3956
Fax: 619-677-3964
kbradford@osageexploration.com
or
Jack Zedlitz, VP of Corporate Development
Phone: 405-270-0989
jzedlitz@osageexploration.com
http://www.osageexploration.com
 
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