Osage Exploration and Development, Inc. provides an operational update regarding the Company's acquisition and development efforts in Colombia.

Osage has worked the past 18 months to uniquely position itself to capitalize on several high impact projects in Colombia. The Company currently produces approximately 120 BOPD from its Colombia and Oklahoma properties. In Colombia the Company has completed two joint ventures with well-established Colombian E&P operating companies including Gold Oil, plc, and Pacific Rubiales Energy. Respectively, these are the Rosablanca project, which consists of a 50% working interest in a 100,000 acre concession in the Middle Magdalena Valley that is on trend with several producing fields, the nearest of which is 6 miles away; and the Guaduas Field which consists of a 9.3% working interest in 75,558 acres with current gross production of 1,000 BOPD that also includes a 9.3% ownership interest in a pipeline that has transportation capacity of 20,000 Bbls/d.

In addition to these two properties, the Company has two other Colombian oil and gas joint ventures identified and has entered into two letters of intent with another major Colombian E&P operating company, pending final documentation and governmental approval. All told, these four properties encompass over 268,000 gross acres (over 420 square miles) with estimated total proven reserves of 0.4 MMBbls and possible reserve potential of over 50 MMBbls based on internal Company engineering and estimates.

The first LOI is on a project in the Middle Magdalena Valley encompassing over 25,000 gross acres located in close proximity to a number of analogous wells that initially produced on average 400 BOPD with minimal decline. The second LOI is on a project in the Llanos Basin that encompasses over 55,000 acres that will target a 6,000' deep channel sand target located within 30 miles of analogous channel sands that are producing on average 14,000 BOPD.