Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent oil and gas exploration and production company focused in Colombia, is pleased to announce financial results for its second quarter ending June 30, 2008, which included the results of its Colombian oil production and pipeline revenues.
Selected financial highlights below:
- Record quarterly revenues of $1,081,327 for the quarter ended June 30, 2008, an increase of over 1,069% compared to $92,443 in the quarter ended June 30, 2007.
- The company recorded its first positive EBITDA quarter with EBITDA of $349,392 for the quarter ended June 30, 2008.
- Record revenues for the six months ended June 30, 2008 of $1,115,893, an increase of over 585% compared to $162,700 for the six months ended June 30, 2007.
- Total assets have more than doubled since December 31, 2007.
Osage Exploration and Development, Inc. filed a form 10-Q with the Securities and Exchange Commission on August 14, 2008 which contains all complete details of the results of operations for the three and six months ended June 30, 2008 and June 30, 2007. Full financial tables are contained at the end of this press release.
About Osage Exploration and Development, Inc.
Based in San Diego, California with production offices in Oklahoma City, Oklahoma, and executive offices in Bogota, Colombia, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the US and Colombia. www.osageexploration.com
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with GAAP, Osage Exploration uses EBITDA, a non-GAAP measure of operating income (loss), net income (loss) and income (loss) per share, which are adjustments from results based on GAAP to exclude Depreciation and Amortization, Interest Expense/Income, Other Income/Expense and Taxes as reconciled in the financial statements below. The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. Management uses both GAAP and non-GAAP information in evaluating and operating business internally and as such deemed it important to provide all this information to investors.
| OSAGE EXPLORATION AND DEVELOPMENT, INC. | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
| Six months Ended June 30, | Three months Ended June 30, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Operating Revenues | ||||||||||||||||
| Oil & Gas Sales | $ | 909,086 | $ | 162,700 | $ | 874,520 | $ | 92,443 | ||||||||
| Pipeline Revenues | 206,807 | - | 206,807 | - | ||||||||||||
| Total Operating Revenues | 1,115,893 | 162,700 | 1,081,327 | 92,443 | ||||||||||||
| Operating Costs and Expenses | ||||||||||||||||
| Operating Expenses | 371,655 | 50,049 | 353,233 | 27,536 | ||||||||||||
| Depreciation, Depletion and Accretion | 64,261 | 3,269 | 61,528 | 2,240 | ||||||||||||
| Non Cash Compensation Expense | 1,531,860 | - | 849,930 | - | ||||||||||||
| General and Administrative Expenses | 777,311 | 258,981 | 378,702 | 172,808 | ||||||||||||
| Total Operating Costs and Expenses | 2,745,087 | 312,299 | 1,643,393 | 202,584 | ||||||||||||
| Operating (Loss) | (1,629,194 | ) | (149,599 | ) | (562,066 | ) | (110,141 | ) | ||||||||
| Other Income (Expenses): | ||||||||||||||||
| Interest Income | 78,361 | 4,469 | 51,562 | 4,055 | ||||||||||||
| Interest Expense | (501,134 | ) | (520,841 | ) | (250,566 | ) | (154,282 | ) | ||||||||
| Other | 4,529 | 4,529 | ||||||||||||||
| (Loss) before Income Taxes | (2,047,438 | ) | (665,971 | ) | (756,541 | ) | (260,368 | ) | ||||||||
| Provision for Income Taxes | 83,670 | - | 83,670 | - | ||||||||||||
| Net (Loss) | (2,131,108 | ) | (665,971 | ) | (840,211 | ) | (260,368 | ) | ||||||||
| Other Comprehensive Income, net of tax: | ||||||||||||||||
| Foreign Currency Translation Adjustment | (8,591 | ) | - | (133,562 | ) | - | ||||||||||
| Other Comprehensive Income | (8,591 | ) | - | (133,562 | ) | - | ||||||||||
| Comprehensive (Loss) | $ | (2,139,699 | ) | $ | (665,971 | ) | $ | (973,773 | ) | $ | (260,368 | ) | ||||
| Basic and Diluted Loss per Share | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | (0.01 | ) | ||||
|
Weighted average number of common share and common share equivalents used to compute basic and diluted Loss per Share |
37,368,017 | 30,478,352 | 38,776,259 | 30,805,791 | ||||||||||||
| OSAGE EXPLORATION AND DEVELOPMENT, INC. | ||||
| CONSOLIDATED BALANCE SHEETS | ||||
| June 30, 2008 | December 31, 2007 | |||
| (unaudited) | ||||
|
ASSETS |
||||
| Current Assets: | ||||
| Cash and cash equivalents | $ 978,489 | $ 689,545 | ||
| Short term Investments | 138,261 | $ - | ||
| Colombian Deposits | 1,026,982 | 1,029,601 | ||
| Accounts Receivable | 495,096 | 11,541 | ||
| Bank CD pledged for Letter of Credit | 144,000 | 147,043 | ||
| Other Current Assets | 80,256 | - | ||
| Prepaid Expenses | 23,014 | 64,632 | ||
| Inventory | 496 | - | ||
| Deposits (Note 5) | - | 140,000 | ||
| Deferred Financing Costs | 11,294 | 33,638 | ||
| Total Current Assets | 2,897,888 | 2,116,000 | ||
| Property and Equipment, at cost: | ||||
| Oil and gas properties and equipment | 2,583,934 | 253,641 | ||
| Capitalized asset retirement costs | 13,675 | 13,675 | ||
| Other property & equipment | 60,426 | 23,520 | ||
| 2,658,035 | 290,836 | |||
|
Less: accumulated depletion, depreciation and amortization |
(70,589) | (10,761) | ||
| 2,587,446 | 280,075 | |||
| Deposits | 82,000 | 82,000 | ||
| Bank CD pledged for Bond | 30,000 | 30,000 | ||
| Total Assets | $ 5,597,334 | $ 2,508,075 | ||
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
||||
| Current Liabilities: | ||||
| Accounts payable | $ 714,485 | $ 53,491 | ||
| Income Tax Payable | 193,535 | |||
| Accrued Expenses | 91,171 | |||
| Current Maturity of Promissory Note | 3,657 | 3,518 | ||
|
Unsecured Convertible Promissory Note, net of $219,173 and $652,753 of unamortized discount as of June 30, 2008 and December 31, 2007, respectively unamortized discount |
880,827 | 447,247 | ||
| Total Current Liabilities | 1,883,675 | 504,256 | ||
| Promissory Note, net of Current Maturity | 5,421 | 7,289 | ||
| Liability for Asset Retirement Obligations | 17,375 | 16,547 | ||
| Commitments and Contingencies | ||||
