Osage Exploration and Development Inc. is taking a larger role in its Logan County operations.
The California-based company turned its attention to the area in 2009, focusing on the Nemaha Ridge, an underground fracture that occurred when Oklahoma was still a tropical region in the Southern Hemisphere.
Osage, which has a production office in Oklahoma City, initially teamed with two larger companies to execute its drilling plan, but the company has reached a partition agreement with partners Slawson Exploration Co. and U.S. Energy Development Corp. to take over as project operator for the majority of its acreage.
“This transformative transaction allows Osage to put its time as a non-operator in the rearview mirror,” CEO Kim Bradford said. “We now control the timing of capital expenditures, the cash flows from oil and gas sales, and the quality and method of operations.”
Osage is now the operator for about 53 percent of its 9,500 acres in the region, while Slawson will continue to operate on the remaining acreage that is held by production.
“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,” Bradford said. “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.”