Osage Exploration and Development Announces Control of Operations in Nemaha Ridge Project

  Osage Exploration and Development Announces Control of Operations in Nemaha
  Ridge Project

              5,015 Operated Acres and 4,475 Joint Venture Acres

            Osage’s Total Operated Acreage Climbs to 13,000+ Acres

Business Wire

SAN DIEGO -- December 20, 2013

Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent
exploration and production company focused on the Horizontal Mississippian and
Woodford plays in Oklahoma, announced today that by virtue of a Partition
Agreement reached with its partners, Osage has become the project operator on
a majority of its acreage in the Nemaha Ridge project in Logan County,
Oklahoma. Effective September 1, 2013, Osage will operate approximately 5,015
net acres in thirty sections, and will remain joint-venture partners with
Slawson Exploration in approximately 4,475 net acres across forty-five
sections. Further, the Company announced that it has put under multi-year
contract two key members collectively having over sixty-five years of industry
experience to form the nucleus of Osage’s operating team.

Partition Agreement

With the Partition Agreement, Osage becomes the Operator of approximately 53%
of its 9,490 acres in the Nemaha Ridge project. The remaining 47% of the
acreage that is held by production will continue to be operated by Slawson
Exploration. Osage retains its ownership share of all existing production from
wells drilled prior to September 1, 2013, as well as ownership of the Proved
Developed Producing reserves from those wells.

Operating Team

In addition to its two exploration geologists whose work provided the
geological foundation of the Nemaha Ridge project, Osage has contracted with
two highly experienced key individuals, Mr. Buddie Livingston as Project
Manager and Mr. Jeff Dwiggins as Manager of Production Engineering, to form
the nucleus of our Operating Team. Together, their sixty-five plus years of
experience in the E&P industry spans all aspects of planning, drilling,
completing, producing, and managing a reservoir. Abbreviated bios for Mssrs.
Livingston and Dwiggins are included below.

Management Comments

“This transformative transaction allows Osage to put its time as a
non-operator in the rear-view mirror,” stated Mr. Kim Bradford, Chairman and
CEO of Osage Exploration and Development, Inc. (OTCBB:OEDV). “As the Operator
of a majority of our acreage in the Logan County Nemaha Ridge project, we now
control the timing of capital expenditures, the cash flows from oil and gas
sales, and the quality and method of operations. It has been our plan to
transition Osage into an operating company since the beginning, and with this
partition agreement, that objective is achieved. We are immediately moving
forward with drilling in Logan County in 2014, as well as our previously
announced move into our Pawnee Mississippian project.”

“Having more than one operator in the Nemaha Ridge project will benefit all
parties involved,” continued Mr. Bradford. “We will be sharing information and
techniques with our neighboring operators in order to optimize all aspects of
drilling and completing the multiple reservoirs that are stacked in the Nemaha
Ridge project.

“Most importantly, Osage now has control of technically and geologically
de-risked Mississippian acreage in Logan County which contains highly economic
known quantities of oil and gas, an operating team with a proven ability to
efficiently extract the oil and gas, and the upside of the Woodford Shale,
which we plan to exploit very soon. With our existing production providing a
base of cash flows and the financial partnership of one of the largest private
equity firms in the world, Osage has begun a new chapter which should be very
rewarding for its shareholders.”

Operating Team Bios

Buddie Livingston has over forty years in the drilling, completion, and
production sectors. His specific focus and the vast majority of his industry
experience has been on highly technical drilling projects, including: high
pressure, snubbing, horizontal, underbalanced, and managed pressure drilling
projects. He has served as a Project Manager, Drilling Supervisor, and
wellsite consultant for Energen Resources, ExxonMobil, and others both onshore
and offshore, with extensive experience in the Permian, Bakken, Anadarko, and
Arkoma basins. Buddie has managed or project managed the drilling of hundreds
of horizontal wells and thousands of vertical wells. Buddie is a third
generation oilman and makes his home in Bristow, Oklahoma.

Jeff Dwiggins has over twenty-five years of experience in the domestic and
international energy industry with a specific focus on designing and improving
artificial lift systems for oil and gas companies. Most recently, Jeff worked
with Apache Corporation as a production engineering consultant for all forms
of artificial lift worldwide, tasked with improving Apache’s overall
artificial lift performance. Jeff has extensive ESP application and
alternative deployed ESP expertise having worked significant projects in such
places as Qatar, Egypt, Brunei, Chad and others. Jeff has successfully managed
the development of many key facets of coiled tubing deployed ESPs. He also has
a broad background in the oil and gas sector including project engineering,
engineering development and management, business operations and development,
start-up operations and manufacturing operations. Jeff lives in Edmond,
Oklahoma.

About Osage Exploration and Development, Inc.

Based in San Diego, California, with production offices in Oklahoma City,
Oklahoma, 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. http://www.osageexploration.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
619-677-3956
kbradford@osageexploration.com
or
Jack Zedlitz, VP of Corporate Development
405-270-0989
jzedlitz@osageexploration.com
http://www.osageexploration.com
 
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