SAN DIEGO--(BUSINESS WIRE)--Please note addition of the Raven Pipeline Company, LLC boilerplate.
The corrected release reads:
OSAGE EXPLORATION AND DEVELOPMENT ANNOUNCES SALE OF WHOLLY-OWNED SUBSIDIARY FOR $6.8 MILLION
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 the sale of a wholly-owned subsidiary, effective as of September 30, 2013, for $6.8 million in cash less settlement of debt of approximately $254,000. The sale of Cimarrona, LLC to Bogota, Colombia-based Raven Pipeline Company, LLC includes Osage’s 9.4% working interest in oil and gas assets in the Guaduas field in the Middle Magdalena Valley in Colombia and the Company’s 9.4% working interest in the Guaduas pipeline. An additional $1 million cash will be paid to Osage so long as the per barrel transportation rate charged with respect to the pipeline is not adjusted prior to March 31, 2014. The sale of Cimarrona, LLC satisfies the amendment to the Apollo Note Purchase Agreement dated August 12, 2013.
“Three years ago, Osage consisted solely of our Colombian assets, a small amount of cash, and a strong geological thesis about Logan County. That small amount of capital and the cash flows from our Colombian assets enabled Osage to build an acreage position in Logan County that has positively transformed the Company. We now have a Horizontal Mississippian project in Oklahoma that is second to none, and the potential for a highly economic Woodford Shale project on the same acreage,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development, Inc. (OTCBB:OEDV).
“With cash flows and asset values from our Nemaha Ridge project growing, the time is right to sell the Colombian assets. This $6.8 million sale of non-core assets fortifies Osage’s balance sheet and hones our focus as a domestic exploration and production company.”
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
With offices in Bogota, Colombia and Houston, Texas, Raven Pipeline was formed two years ago to build and operate oil and gas pipelines and related facilities in Colombia and South America. http://ravenpipeline.com.co/
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.