History
Osage moved from failed Colombian exploration into Oklahoma's Logan County, funding it with Apollo debt and share sales, then deregistered from SEC reporting in October 2015.
2007-2009: The Colombian detour
In July 2007 Osage raised $1,100,000 through an 8% convertible note, which could add shares if the holder converted it. A month later it agreed to farm into the roughly 165-square-mile Rosablanca concession in Colombia, paying all costs of the first well to earn a 50% interest. By August 10, 2007 it had paid $1,200,000 to Gold Oil, the project's lead partner, and issued a $144,000 letter of credit.
In April 2008 Osage bought Cimarrona LLC from Sunstone Corporation. Cimarrona owned a 9.4% interest in the Guaduas field in Colombia. Osage paid 2,750,000 shares plus a warrant (a right to buy shares at a set price) for 1,125,000 shares at $1.25. In March 2009 it sold half its Rosablanca stake to Lewis Energy Colombia, which would operate and pay first-well costs up to $3,500,000. Osage also issued 5,250,000 shares to Mustang Capital Venture, a Lewis affiliate.
The well failed. The RB 1 well found no producible hydrocarbons, and in September 2009 Osage left the block, with Gold Oil keeping the money already spent. Guaduas remained its Colombian anchor. The record then goes quiet until 2011.
2011-2012: Oklahoma and expensive debt
By 2011 the focus was Logan County, Oklahoma, a Mississippian play (a layer of oil-bearing rock). In January 2011 Osage borrowed $500,000 from Blackrock Management, a lender run by former officer and director Ran Furman, secured on its Logan County leases and Cimarrona.
In April 2011 Slawson and U.S. Energy Development paid $4,875,000 for stakes in Osage's 10,000-acre Nemaha Ridge prospect and agreed to carry the company for 10% of the cost of the first three horizontal wells. Slawson would operate, and Osage kept 25% of revenue. The proceeds repaid the Blackrock note and an April 2011 note.
In April 2012 Osage issued a $2,500,000 secured note to Boothbay Royalty Co. at 18% interest, with 400,000 shares and overriding royalties (a share of production revenue). Days later it signed a $10,000,000 senior secured facility with Apollo Investment Corporation at LIBOR plus 15% (LIBOR is a benchmark interest rate), secured on substantially all assets. Apollo and CC Natural Resource Partners received warrants at $0.01. Nothing was drawn at closing. The company's auditors had included going-concern warnings on its 2011 and 2012 financial statements.
2013: Borrowing more, leaving Colombia
In April 2013 Apollo raised the facility to $20 million with a limited covenant waiver. Osage drew $5 million and paid a $100,000 fee. In October it sold Cimarrona to Raven Pipeline Company for $6,800,000 in cash less about $254,000 of debt, ending its Colombian holding. Of this, $250,000 was held in escrow for 12 months, and a further $1,000,000 was due if the pipeline transport rate was not adjusted before March 31, 2014.
In December a Partition Agreement with the Slawson group, effective September 1, 2013, separated their acreage. Osage became operator of about 5,015 net acres in 30 sections and stayed a partner with Slawson on about 4,475 net acres in 45 sections.
2014-2015: More capital, then deregistration
In February 2014 Osage sold 4,900,000 units at $0.90, each a share plus a warrant for 0.4 share at $1.80, raising $4,410,000 with up to $5,400,000 possible. Shares on issue rose from 49.9 million to 58.1 million by the end of 2014. On April 3, 2014 Apollo raised the facility to $30 million, extended maturity to April 27, 2016, cut the rate to LIBOR plus 11% and allowed a $5 million draw at signing. The Boothbay note fell due on April 17, 2014, and the filings do not show its outcome.
The last major event came on October 23, 2015, when Osage deregistered its securities, ending its obligation to file reports with the SEC. The record does not show what happened to its drilling plans or debt after April 2014.
Written from the 15 story beats below (2007 to 23 Oct 2015), which come from the company's own announcements and filings.