Osage Exploration Doubles Facility With Apollo Investment
Osage Exploration and Development, an independent exploration and production company announced that it increased its existing drawdown credit facility with Apollo Investment Corporation from $10 million to $20 million. The proceeds from the expanded facility will fully fund the company’s planned 2013 capital expenditures in its Nemaha Ridge project in Logan County, OK.
Kim Bradford, chairman and CEO of Osage Exploration, commented, “Our lender, Apollo Investment Corporation, has been extremely supportive of our activities in Logan County over the last year. Since our initial agreement in April of 2012, Apollo made it clear to us that early success would translate into an expanded facility whenever Osage was ready. With the revenues from our first three wells surpassing the capital invested in those wells, Osage has amply demonstrated that we have the ability to efficiently invest drilling capital. Now that we are drilling at a pace well above of our initial goal of two wells per month, doubling the existing facility is the prudent move to make. We have eight wells in various stages of production, six more in flowback, three drilled and awaiting fracture stimulation, and three rigs drilling new wells now.
“Earning the confidence of one of the premiere private equity firms in the world and quickly achieving meaningful results sets us apart from our micro-cap peers. Our objective is to drill the Nemaha Ridge acreage into the Proved Producing reserve category as expeditiously as possible. With Apollo’s support we have the ability to do so while still maintaining tremendous financial flexibility going forward.”
Bradford continued, “I am extremely proud of the performance that the Osage team, our Operating partners, and our financial partners are realizing. Our challenge has been to transition from a one well per quarter project into executing an efficient, high rate sequential drilling plan. Together we have accomplished that operationally and financially in a seamless fashion.”
Apollo Investment Corporation is a provider of subordinated debt and equity capital to middle-market companies.