US player Osage Exploration and Development reported solid...

US player Osage Exploration and Development reported solid results from its first horizontal well in the liquids-rich Mississippi Lime play in Oklahoma, sending the company’s shares up more than 18%.

The Wolf 1-29H, part of the Nemaha Ridge project located in Logan County and operated by privately held Slawson Exploration, hit a 72-hour initial production rate of over 1185 barrels of oil equivalent per day with 85% oil.

The well, drilled to a vertical depth of 5816 feet with a 4104-foot lateral and stimulated with a 12-stage frac, produced an average of about 876 boepd in the first 30 full days, Osage said.

“The initial production at the Wolf is among the highest in the horizontal Mississippian play to date,” said Osage chief executive Kim Bradford. “More significantly, the economics of the well due to the percentage of crude oil versus natural gas and our initial 50% water cut are unsurpassed to our knowledge.”

The well results spurred Osage’s shares to a 52-week high of $1.30 in over-the-counter trade on Monday morning – 18.18% higher than Friday’s close.

Osage owns a 25% working interest (19.5% net revenue) in the Nemaha Ridge project. Slawson is the operator with a 45% interest. US Energy Development Corporation owns the remaining 30%.

http://www.upstreamonline.com/live/article1245455.ece

Important to note that Logan County is just immediately South and West of Noble and Payne respectively where Red Fork is currently drilling their horizontals.

Worth repeating again IMO:

“The initial production at the Wolf is among the highest in the horizontal Mississippian play to date,”