Osage Exploration and Development Inc. (OTC: OEDV) announced Oct. 14 the sale of a wholly-owned subsidiary, effective as of Sept. 30, 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.
Three years ago, Osage consisted solely of its Colombian assets, a small amount of cash and a strong geological thesis about Logan County, Okla., Kim Bradford, Osage chairman and CEO, said in the release.
“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,” Bradford said. “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."
Osage Exploration and Development Inc. is an independent E&P company focused on the Horizontal Mississippian and Woodford plays in Oklahoma. The company is based in San Diego.