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 a one day peak IP on the Tontz 2-32H of 608 BOE. The Tontz 2-32H, operated by Stephens Production Company, is the second well to be drilled in Section 32-17N-3W and directly offsets the previously announced Tontz 1-32H. Osage owns 8.23% of the well.
“The significance of the early production from the Tontz 2-32H, which is the second horizontal Mississippian well in Section 32-17N-3W, may be more than meets the eye”
“The significance of the early production from the Tontz 2-32H, which is the second horizontal Mississippian well in Section 32-17N-3W, may be more than meets the eye,” stated Mr. Kim Bradford, Chairman and CEO of Osage Exploration and Development (OTCBB:OEDV). “The Tontz 1-32H, which was the first horizontal Mississippian well in the section, has already produced over 30,000 barrels of oil and over 30 million cubic feet of natural gas. Osage's Wolf 1-29H, which literally shares a drilling pad with the Tontz 2-32, has already produced over 80,000 barrels of oil and over 80 million cubic feet of natural gas.
“Conventional wisdom about drilling additional wells in close proximity to other producing horizontal wells suggests that the later wells may not be as strong. However, this has not been the case with the Tontz 2-32H. Despite the fact that so much oil and gas has been produced in very close proximity to the Tontz 2-32H, we are still seeing virgin reservoir IP rates. This result is a powerful testament to the oil saturation in this area and across our entire block. If this holds true for future drilling of the second, third, fourth, or fifth well in each section, the value of the reserves in Osage’s Nemaha Ridge project will be greatly enhanced over what has been previously projected.”
Mr. Bradford continued, “Our well results and those of offsetting operators in the Mississippian and Woodford formations in Logan County continue to redefine what the industry previously understood about the Horizontal Mississippian and oily Woodford plays. Osage’s Mississippian and Woodford acreage is simply in a superior part of the reservoir.”
Source: Business Wire
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