Yesterday, Osage Exploration and Development Inc (OTC:OEDV) hit the massive trade. Just for a day, the stock gained 
approximately 39% and its traded volume substantially increased.
Most probably, the significant price change is a result of yesterday’s news by Osage Exploration. According to it, the company has just closed an agreement whereby Slawson Exploration Company, Inc. and U.S. Energy Development Corporation have acquired 45% and 30% respectively of Osage’s Nemaha Ridge project in Oklahoma for gross consideration of about $4,8 million plus a 10% net carry on the first three horizontal Mississippian wells. The new agreement was claimed as a notable Joint Venture for the Osage’s shareholders and encouraged traders even more. Whether OEDV will hold the current gain is just about to be seen.
Osage Exploration and Development, Inc is an independent oil and gas company with operations in the US and South America. Not long ago, the company filed its latest quarterly results, which however, didn’t inspire much confidence.[BANNER]
Despite the fact that the total assets of OEDV were higher than its liabilities, the company’s accumulated deficit got over $10 million and its stockholders’ deficiency remained a notable negative value. As a result of the incurred losses over the past three years, Osage’s operating plans require additional funds that may take the form of debt or equity financings. However, the company’s management is uncertain that it will achieve a profitable level of operations and obtain additional financing. In this case OEDV may elect, or be required to seek, protection from its creditors, or may be subject to an involuntary petition in bankruptcy.
Presently, the team relies on its new Joint Venture, while at the same time the company’s profitability is dependent upon a number of factors that cannot be easily maintained.
