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From: Celtictrader3/8/2012 3:30:43 PM
   of 115725
 


ORBT-Orbit International Corp. Reports 2011 Fourth Quarter and Year-End Results
8:45a ET March 8, 2012 (Business Wire)

--2011 Earnings per Share of $0.67 vs. $0.66 Loss per Share in Prior Year

--Strong Operating Performance Expected to Continue in 2012

Orbit International Corp. (NASDAQ:ORBT) today announced results for the fourth quarter and year ended December 31, 2011.

Fourth Quarter 2011vs. Fourth Quarter 2010

-- Net sales increased by 16.5% to $8,095,000 compared to $6,946,000;

-- Gross margin increased to 44.5% from 32.6%;

-- Net income was $1,009,000 ($0.21 earnings per diluted share) compared to a net loss of $3,028,000 ($0.66 loss per share). The net loss for the 2010 fourth quarter included a charge of $2,000,000 for costs related to non-renewal of the former chief executive officer contract (including a non-cash charge of $312,000 due to accelerated stock vesting) and $924,000 of non-cash impairment charges taken in connection with recorded intangible assets and goodwill related to its ICS subsidiary. Excluding these charges, the net loss for 2010 was $104,000 ($0.02 loss per share); and,

-- Earnings before interest, taxes, depreciation and amortization, and stock based compensation (EBITDA, as adjusted) was $1,162,000 ($0.25 earnings per diluted share) compared to a loss of $1,564,000 ($0.34 loss per share).

Full Year 2011 vs. Full Year 2010

-- Net sales increased by 16% to $31,041,000 compared to $26,749,000;

-- Gross margin increased to 42.6% from 35.4%;

-- Net income was $3,147,000 ($0.67 earnings per diluted share) compared to a net loss of $3,025,000 ($0.66 loss per share). Excluding the aforementioned fourth quarter charges, the 2010 net loss was $101,000 ($0.02 loss per share);

-- EBITDA, as adjusted, was $3,845,000 ($0.82 earnings per diluted share) compared to a loss of $831,000 ($0.18 loss per share); and,

-- Backlog at December 31, 2011 was $15.5 million as compared to $15.8 million at September 30, 2011 and $20.1 million at December 31, 2010. Backlog was $18.7 million at February 29, 2012.

Commenting on fourth quarter results, Mitchell Binder, President & Chief Executive Officer, stated, "The final quarter of 2011 was our strongest period of the year. The 16.5% increase in net sales produced over $1 million in net income, or a 12.5% net margin for the 2011 fourth quarter. The operating leverage inherent in our business enabled us to achieve a 44.5% gross margin and reduce selling, general and administrative (S, G & A) expenses as a percent of net sales to 31.6%."

He continued, "Our strong fourth quarter capped our best operating year in recent memory. Our net sales for 2011 exceeded $31 million and net income was over $3 million, improving by more than $6.1 million year over year, due to the increased sales, operating leverage (gross margin increased to approximately 43% returning to historical levels and S, G & A expenses as a percent of net sales decreased to 32.1% as compared to 35.9% in 2010) and due to over $2.9 million of costs related to non-renewal of the former chief executive officer contract and non-cash impairment charges which adversely affected the prior year."

Discussing backlog and expectations for 2012, Mr. Binder added, "We closed the year with backlog of $15.5 million and by February 29, 2012, backlog increased to $18.7 million due to strong bookings from both our Power and Electronics Groups. After a 35% increase in bookings, as well as record revenues and backlog in 2011, our Power Group's 2012 year-to-date bookings have remained strong and we expect to continue to receive follow-on orders for legacy programs in both our COTS and Commercial Divisions. Additionally, our Electronics Group started the year with a color display order from the U.S. Navy valued at approximately $1.8 million with an exercise of an option to purchase additional displays expected shortly. We are anticipating several large orders for Remote Control Units under the Common Transponder Program and for keyboards for the FAA, which as indicated by our customers, should be awarded by the end of the first quarter to accommodate their delivery requirements for this year."

Binder added, "Backlog from our TDL operating unit increased from year end due to a $1.3 million contract received for the ground mobile marketplace. In addition, TDL is also expecting approximately $1.5 million in new contracts for avionic displays which we expect to receive prior to the end of the second quarter. Our ICS subsidiary received an order for an additional two prototype units for its Serial Data Converter, the replacement for the MK-119, and also received an indication from the U.S. Navy of potential awards for additional MK-119s for foreign military sales by the end of 2012. Based upon our backlog, delivery schedules and expected orders, we anticipate another year of strong operating performance in 2012, although as was the case in 2011, our comparable and sequential quarterly performance may be uneven."

Mr. Binder concluded, "In addition to growing our business organically, in 2012 we continue our pursuit of strategic accretive acquisitions and we are developing a pipeline of companies for consideration."

David Goldman, Chief Financial Officer, noted, "Our financial condition remains strong. At December 31, 2011, total current assets were $20,876,000 versus total current liabilities of $3,838,000 for a 5.4 to 1 current ratio. Cash, cash equivalents and marketable securities as of December 31, 2011, aggregated over $2.6 million. Our inventory levels at 2011 year-end, although lower than September 30, 2011, were higher than one year ago and will continue to increase as buying has commenced for several orders expected for the Electronics Group. To offset federal and state taxes resulting from profits, we have approximately $9 million and $7 million in available federal and state net operating loss carryforwards, respectively, which should enhance future cash flow. Our tangible book value at December 31, 2011, was $3.76 per share, an increase of 22% from $3.07 per share at December 31, 2010. The Company was in compliance with its financial covenants as of December 31, 2011 and our primary lender has extended the expiration date of our credit line until June 1, 2012. We had no borrowings under the line of credit as of December 31, 2011."

Conference Call

The Company will hold a conference call for investors today, March 8, 2012, at 11:00 a.m. ET. Interested parties may participate in the call by dialing 201-493-6744; please call in 10 minutes before the conference call is scheduled to begin and ask for the Orbit International conference call. After opening remarks, there will be a question and answer period. The conference call will also be broadcast live over the Internet. To listen to the live call, please go to www.orbitintl.com and click on the Investor Relations section. Please go to the website at least 15 minutes early to register, and download and install any necessary audio software. If you are unable to listen live, the conference call will be archived and can be accessed for approximately 90 days at Orbit's website. We suggest listeners use Microsoft Explorer as their browser.

Orbit International Corp. is involved in the manufacture of customized electronic components and subsystems for military and nonmilitary government applications through its production facilities in Hauppauge, New York, and Quakertown, Pennsylvania; and designs and manufactures combat systems and gun weapons systems, provides system integration and integrated logistics support and documentation control at its facilities in Louisville, Kentucky. Its Behlman Electronics, Inc. subsidiary manufactures and sells high quality commercial power units, AC power sources, frequency converters, uninterruptible power supplies and associated analytical equipment. The Behlman military division designs, manufactures and sells power units and electronic products for measurement and display.

Certain matters discussed in this news release and oral statements made from time to time by representatives of the Company including, statements regarding our expectations of Orbit's operating plans, deliveries under contracts and strategies generally; statements regarding our expectations of the performance of our business; expectations regarding costs and revenues, future operating results, additional orders, future business opportunities and continued growth, may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Although Orbit believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved.

Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Many of these factors are beyond Orbit International's ability to control or predict. Important factors that may cause actual results to differ materially and that could impact Orbit International and the statements contained in this news release can be found in Orbit's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q, current reports on Form 8-K, annual reports on Form 10-K and its other periodic reports. For forward-looking statements in this news release, Orbit claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Orbit assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise.

(See Accompanying Tables)

                                   Orbit International Corp.                              Consolidated Statements of Operations                              (in thousands, except per share data)                                           (unaudited)                                                  Three Months Ended           Year Ended                                                     December 31,             December 31,                                                   2011        2010         2011       2010                                                ---------- ------------  ---------- ----------- Net sales                                        $ 8,095    $   6,946    $ 31,041   $  26,749 Cost of sales                                      4,495        4,679      17,812      17,273                                                    -----      -------      ------     ------- Gross profit                                       3,600        2,267      13,229       9,476 Selling, general and administrative expenses       2,556        2,368       9,955       9,614 Costs related to non-renewal of former chief executive officer contract                       -        2,000           -       2,000 Impairment of intangible assets                        -          129           -         129 Goodwill impairment                                    -          795           -         795 Interest expense                                      38           53         189         225 Investment and other income                         (16)         (62)       (149)       (275)                                                    -----      -------      ------     ------- Net income (loss) before taxes                     1,022      (3,016)       3,234     (3,012) Income tax provision                                  13           12          87          13                                                    -----      -------      ------     ------- Net Income (loss)                                $ 1,009    $ (3,028)    $  3,147   $ (3,025)                                                === =====  === =======   == ======  == ======= Basic earnings (loss) per share                  $  0.22    $  (0.66)    $   0.67   $  (0.66) Diluted earnings (loss) per share                $  0.21    $  (0.66)    $   0.67   $  (0.66) Weighted average number of shares  outstanding:   Basic                                            4,672        4,616       4,672       4,563   Diluted                                          4,695        4,616       4,697       4,563
                                Orbit International Corp.                           Consolidated Statements of Operations                           (in thousands, except per share data)                                        (unaudited)                                           Three Months Ended            Year Ended                                              December 31,              December 31,                                          2011         2010          2011        2010                                       ---------- ---------------  --------- ------------- EBITDA Reconciliation (as adjusted) ----------------------------------- Net income (loss)                       $ 1,009    $ (3,028 )      $ 3,147   $ (3,025 ) Interest expense                             38          53            189        225 Tax expense                                  13          12             87         13 Depreciation and amortization                68          76            270        376 Goodwill and intangible asset  impairment                                   -         924              -        924 Stock based compensation                     34         399            152        656                                           -----      ------          -----     ------ EBITDA, as adjusted (1)                 $ 1,162    $ (1,564 )      $ 3,845   $   (831 )                                       === =====  === ====== ===   == =====  == ====== == Adjusted EBITDA Per Diluted Share ----------------------------------- Reconciliation ----------------------------------- Net income (loss)                       $  0.21    $  (0.66 )      $  0.67   $  (0.66 ) Interest expense                           0.01        0.01           0.04       0.05 Tax expense                                0.00        0.00           0.02       0.00 Depreciation and amortization              0.02        0.02           0.06       0.08 Goodwill and intangible asset  impairment                                   -        0.20              -       0.21 Stock based compensation                   0.01        0.09           0.03       0.14                                           -----      ------          -----     ------ EBITDA, as adjusted,                    $  0.25    $  (0.34 )      $  0.82   $  (0.18 ) per diluted share (1)                                       === =====  === ====== ===   == =====  == ====== ==
(1) The EBITDA tables (as adjusted) presented are not determined in accordance with accounting principles generally accepted in the United States of America. Management uses adjusted EBITDA to evaluate the operating performance of its business. It is also used, at times, by some investors, securities analysts and others to evaluate companies and make informed business decisions. EBITDA is also a useful indicator of the income generated to service debt. EBITDA (as adjusted) is not a complete measure of an entity's profitability because it does not include costs and expenses for interest, depreciation and amortization, goodwill impairment, income taxes and stock based compensation. Adjusted EBITDA as presented herein may not be comparable to similarly named measures reported by other companies. The weighted average diluted shares used for the three months and twelve months ended December 31, 2011 was 4,695,000 and 4,697,000, respectively; and for the three months and twelve months ended December 31, 2010 was 4,616,000 and 4,563,000, respectively.

                                                   Year Ended December 31, Reconciliation of EBITDA, as adjusted, to cash flows from operating activities (1)          2011           2010 ----------------------------------------------   ----------     --------- EBITDA (as adjusted)                              $  3,845       $  (831 ) Interest expense                                      (189 )        (225 ) Tax expense                                            (87 )         (13 ) Bond amortization                                        1             1 Gain on sale of marketable securities                  (45 )        (129 ) Loss on disposal of property and equipment               8             - Deferred income                                        (86 )         (85 ) Net change in operating assets and liabilities      (1,498 )       1,713                                                     ------ --      ----- Cash flows from operating activities              $  1,949       $   431
                                             Orbit International Corp.                                             Consolidated Balance Sheets                                                                      December 31, 2011       December 31, 2010                                                                    ------------------      ------------------ ASSETS Current assets:     Cash and cash equivalents                                             $  1,709,000            $  1,964,000     Restricted cash                                                            671,000                       -     Investments in marketable securities                                       228,000                 146,000     Accounts receivable, less allowance for doubtful accounts                4,941,000               3,927,000     Inventories                                                             12,550,000              11,627,000     Costs and estimated earnings in excess of billings on      uncompleted contracts                                                           -                 468,000     Deferred tax asset                                                         527,000                 391,000     Other current assets                                                       250,000               1,043,000                                                                             ----------              ----------                     Total current assets                                    20,876,000              19,566,000 Property and equipment, net                                                  1,014,000               1,172,000 Goodwill                                                                     1,688,000               1,688,000 Deferred tax asset                                                           1,734,000               1,847,000 Other assets                                                                    99,000                 106,000                                                                             ----------              ----------                     Total assets                                          $ 25,411,000            $ 24,379,000                                                                    ======== ==========     ======== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities:     Current portion of long term obligations                              $    931,000            $    931,000     Notes payable-bank                                                               -                 387,000     Accounts payable                                                           804,000                 794,000     Liability associated with former chief executive officer                   623,000               1,194,000     Income taxes payable                                                        30,000                       -     Accrued expenses                                                         1,350,000               1,051,000     Customer advances                                                           15,000                 118,000     Deferred income                                                             85,000                  85,000                                                                             ----------              ----------                     Total current liabilities                                3,838,000               4,560,000 Deferred income                                                                      -                  86,000 Liability associated with former chief executive officer, net of                     -                 494,000 current portion Long-term obligations                                                        2,095,000               3,026,000                                                                             ----------              ----------                     Total liabilities                                        5,933,000               8,166,000 Stockholders' Equity     Common stock                                                               510,000                 510,000     Additional paid-in capital                                              22,515,000              22,360,000     Treasury stock                                                            (915,000 )              (915,000 )     Accumulated other comprehensive (loss) gain                                (18,000 )                19,000     Accumulated deficit                                                     (2,614,000 )            (5,761,000 )                                                                             ----------              ----------                     Stockholders' equity                                    19,478,000              16,213,000                                                                             ----------              ----------                     Total liabilities and stockholders' equity            $ 25,411,000            $ 24,379,000                                                                    ======== ==========     ======== ==========
SOURCE: Orbit International Corp.

Orbit International Corp.  Mitchell Binder, 631-435-8300  President & Chief Executive Officer  or  Investor Relations Counsel  The Equity Group Inc.  Lena Cati, 212-836-9611  or  Linda Latman, 212-836-9609

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To: dogpound who wrote (107040)3/8/2012 3:51:20 PM
From: Jeffrey Beckman
   of 115725
 


I think that with 3 recommendations, you probably should elaborate :)

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From: Jeffrey Beckman3/8/2012 4:00:49 PM
   of 115725
 


LWLG - There seems to be some Yahoo talk about IBM stealing their thunder. Did I get that right?

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From: JoeinIowa3/9/2012 8:01:47 AM
1 Recommendation   of 115725
 
Augme Technologies (AUGT.ob) $1.85

YAHOO VS FACEBOOK
Buy, Sell or Hold: The Real Winner in the Yahoo (YHOO) vs Facebook Fight Could Be Augme Technologies (AUGT)
March 9, 2012

moneymorning.com

By Jack Barnes, Global Macro Trends Specialist, Money Morning
I love to find asymmetric risk/reward scenarios in the market.

You can do that with a small company which has the ability to unlock a large payday - and I believe I have found one with Augme Technologies Inc. (OTC: AUGT ).

To understand the value of mobile marketing company Augme, first we have to look at what Yahoo! Inc. (Nasdaq: YHOO) has done to Facebook.

Ripples shot through the technology space last week when Yahoo launched an all-out patent assault against Facebook.

Yahoo is demanding billions in licensing fees for the use of its technologies.

Yahoo has asserted claims on patents that include the technical mechanisms in Facebook's ads, privacy controls, newsfeed and messaging service.

In simple terms, Yahoo is getting ready to try and bring Facebook to its knees through legal means.

"Yahoo has a responsibility to its shareholders, employees and other stakeholders to protect its intellectual property," a Yahoo spokesman said in an e-mailed statement. "We must insist that Facebook either enter into a licensing agreement or we will be compelled to move forward unilaterally to protect our rights."

Should Yahoo sue Facebook, it would mark the first major legal battle among technology giants in the social media sphere.

It would indicate a major escalation of patent litigation that has already swept up the smartphone and tablet sectors and high-tech stalwarts such as Apple, Microsoft and Motorola.

Yahoo's patent claims come hot on the heels of Facebook's IPO announcement to raise money that would roughly give them a $100 billion valuation.

This lawsuit threat can only have Facebook's management, its bankers and lawyers rushing to secure some sort of defensive arsenal to fight off this and other pending attacks.

While this battle has captured everyone's attention, what I find more interesting is Yahoo's seemingly blatant hypocrisy.

Yahoo appears to be throwing rocks from its glass house at the neighbors by wanting to make others pay for the unauthorized use of its patented technology.

What Yahoo is seemingly trying to ignore is that it, too, has been accused of the same type of intellectual property theft - and the accuser is Augme Technologies.

Now, You Don't Have To Pay Lots Of Money To Make Lots Of Money
"Join me for my daily 'private briefings' with our top editors.
Click here to learn more

Augme Technologies vs. Yahoo
In November 2009, New York-based Augme, which provides mobile marketing technologies and services, sued Yahoo in federal court in San Francisco. Augme accused the Sunnyvale, CA-based Internet company of infringing on patents related to webpage functionality which enables targeting ads to end-users.

Two specific patents are in dispute , with potential damages estimated by some to be as high as $1-$2 billion absent potential treble damages. The suit could render Yahoo's own online advertising platform materially compromised.

Thus far, things haven't gone Yahoo's way. It lost its request for summary judgment, appears to have fared poorly in the Markman ruling , lost its request to protect its code for its entire ad system and lost its request to seal at least one hearing from the public.

Despite Yahoo's best efforts, a jury trial was recently set for January 2013 .

With Augme's suit against Yahoo, and Yahoo's aggressive attack on Facebook, I think Augme could soon find itself at the epicenter of what is setting up to be a classic clash of the titans.

The situation begs the question: what happens if Facebook moves to acquire Augme?

Augme Technologies: The Savior in the Yahoo vs. Facebook Fight
Facebook acquiring Augme and its patents would allow them to literally step directly into Augme's shoes in the currently pending litigation against Yahoo.

Facebook also could use Augme's patent portfolio to fend off the growing list of others that have filed suits against the social media behemoth.

In addition to its patents, Augme also boasts the Hipcricket mobile marketing arm, which it acquired in August 2011. Hipcricket was named "Mobile Service Provider of the Year" by Mobile Marketer in 2011.

Business research firm Frost & Sullivan said in 2011 that Hipcricket "has emerged as the preferred provider of high-impact mobile marketing solutions in the United States," and that "its recent acquisition by Augme Technologies is expected to further consolidate the company's position as an industry powerhouse."

Augme announced earlier this week it expects to report revenue of approximately $5.1 million for the fourth quarter of fiscal 2012 ended Feb. 29, 2012. That's a 15% gain from the previous quarter. The dollar value of contracts signed during the fourth quarter totaled approximately $6.5 million, a 23% rise from the previous quarter's $5.3 million.

The value of mobile marketers is increasing, which has triggered some merger and acquisition activity in the sector. Just this week, fellow mobile industry leader Amobee was acquired by SingTel for $321 million - representing a tremendous premium.

The global mobile ad market is likely to increase to more than $20 billion by 2015, up from about $7 billion this year, according to tech research firm Gartner Inc.

Four analysts have issued "Buy" ratings on Augme, and the top two price targets are $5.75 and $6.00. That means gains of 209% - 223% from Wednesday's closing price.

With exploding revenues, top management, and over 50 Fortune 500 clients, Augme Technologies is a "Buy."

Action to Take : Buy Augme Technologies (OTC: AUGT ). (**)

The stock is trading in the lower half of its price range, making it an interesting play on the Yahoo vs. Facebook war and the smartphone revolution. There are also a host of other companies who would significantly benefit from both Augme's growing mobile marketing business as well as its patent portfolio, and could make a move to acquire Augme.

With the stock trading at under $2 relative to its $4.70 high, I'm recommending we use limit orders on this stock. It is highly volatile and serious patience should be exercised in building the position.

Special Note of Disclosure : Jack Barnes has no interest in Augme Technologies (OTC: AUGT ).


About the Writer: Columnist Jack Barnes started his career at Franklin Templeton in 1997. He started out in the company's fund-information department - just as the Asian contagion infected the Asian tiger countries.

Barnes launched his own shop, RIA, in 2003, just as the second Gulf War was breaking out. In early 2006, after logging a one-year return of nearly 83%, Forbes named Barnes the top stock picker in its "Armchair Investors Who Beat the Pros" competition. His two audited hedge funds generated double-digit returns in 2008.

Barnes retired to the beach in the summer of 2009, and continues to write from there. He's now the author of the popular blog, " Confessions of a Macro Contrarian ," and his " Buy, Sell or Hold " column appears in Money Morning on Mondays. In his BSH column last week, Barnes analyzed SPDR Gold Trust ETF (NYSE: GLD).


News and Related Story Links:

The New York Times:
Yahoo Warns Facebook of a Potential Patent Fight

MarketWatch:
Hipcricket Named "Mobile Service Provider of the Year" by Mobile Marketer

Money Morning News Archive:
Previous "Buy, Sell or Hold" Features

JackBarnes.com:
Confessions of a Macro Contrarian.

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To: Jeffrey Beckman who wrote (107063)3/9/2012 9:21:09 AM
From: Todmohr
   of 115725
 
LWLG..thanks for the heads up Jeffrey. I am enclosing the link to the news story that highlights IBM's product. If I am assessing the news correctly, it sounds like serious competition for LWLG. More worrisome to me is the fact that IBM likely has far more political clout than LWLG - and certainly more cash to win potential government contracts. I have to worry that this may be yet another case where the possibly best product loses out to a bigger Blue Chip company. I hope not, but I would be foolish not to think about that possibility. I am holding free shares now, having sold a majority of my position - but I may sell even more based on the near term trading action. As I said before just because they are free shares does not mean I should ride them all the way back down to .40 - based on a change in the outlook/competition for the company.

Just my thoughts..

Regards,
Tod


finance.yahoo.com

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From: manny t3/9/2012 11:16:52 AM
   of 115725
 
MSEH,

Director buys 100,000 shares at .271.He now owns 1,072,054 shares.

xml.10kwizard.com

Manny

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From: ACAN3/9/2012 4:25:10 PM
2 Recommendations   of 115725
 
COOL

stockcharts.com

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From: 1Coffeehound3/9/2012 6:02:04 PM
   of 115725
 
BFDI - 10K shows 43 full-time employees and 1 part-time versus 28 full-time and no part-time a year ago. Company expects to hire more personnel going forward. This one isn't going to fly under the radar forever.

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To: Celtictrader who wrote (107061)3/10/2012 7:54:33 AM
From: Celtictrader
   of 115725
 
OEDV - Osage Exploration: Nice write up about Osage in The Oklahoman.(KeepingGood Company with DEVON Energy)

Osage Exploration trying to make its mark in Oklahoma oil play


Tiny Osage Exploration & Development may be primed to cash in on its efforts to identify the edge of the developing Mississippian oil play.

By JAY F. MARKS | Published: March 9, 2012

An ambitious six-person oil and natural gas company based in California is out of make a name for itself in Oklahoma's growing Mississippian oil play.

But while other operators have concentrated their efforts closer to the Oklahoma-Kansas border, Osage Exploration & Development chose to strike off on its own.

Osage focused on the area around Crescent in Logan County after turning its attention to the Mississippian in 2009 based on geologist Greg Franklin's analysis of data from about 300 earlier wells.

CEO Kim Bradford said the key feature of Osage's acreage is the Nemaha Ridge, an underground fracture that occurred when Oklahoma was still a tropical area in the Southern Hemisphere.

Franklin's studies indicated the rocks near the ridge were porous, meaning they could hold more oil than tighter formations.

“This was the promised land,” Bradford said.

Osage got in early enough to amass its acreage at reasonable prices, which is important for such a small company.

Bradford said Osage, which started less than a decade ago, built its asset base in South America to fund its domestic exploration efforts.

Osage was among the early companies looking at acreage in south Texas' Eagle Ford Shale, but Bradford said it didn't have the cash to compete for leasehold with larger companies like Chesapeake Energy Corp.

That is why Osage was eager to find its own piece of the emerging Mississippian plan.

“We got way in front of the wave,” said Bradford, a California resident who spends about 25 days a month living in an Oklahoma City hotel.

Jack Zedlitz, Osage's investor relations and capital markets adviser, said the company figured to figure out where the Mississippian would be, instead of where it was a couple of years ago.

That gave the little company a jump on its larger competitors.

“We got there a year ahead of them,” Zedlitz said.

Narrow focus

Osage, which has its operations office in downtown Oklahoma City, owns about 20,000 net acres in the Crescent area, with Devon Energy Corp. surrounding its position, so officials are optimistic about the company's holdings.

Osage has partnered with Slawson Exploration Co. and U.S. Energy Development Corp. in its drilling program. Bradford said the partnership has drilled and fracture stimulated two wells.

The wells are 12 miles apart, on opposite ends of Osage's acreage. Production results should begin coming in soon.

Bradford said company officials are excited about the prospect of proving their theories about the area were correct.

“We've done an extraordinary amount of work in very, very fine detail,” Bradford said. “We've got an understanding of our area that is second to none.”

He said producers have not drilled any dry holes since they began drilling horizontal wells in the Mississippian, so it becomes a matter of economics.

“These are some of the most economic wells in America,” Bradford said.

He said he expects Osage's wells to return 100 percent of their cost to the company in a year, based on current expenses.

Osage expects to begin drilling two wells a month in the next 30 days or so, with plans to drill as many as 15 wells on its acreage, he said.

Bradford said Osage's narrow focus is not typical for such small companies, but it is on the verge of paying off.

“We picked this 200 square miles, and we've tried to own it,” he said. “This is our universe.”

newsok.com

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To: Todmohr who wrote (107065)3/10/2012 11:53:24 AM
From: Jeffrey Beckman
   of 115725
 
Todmohr, I've never really taken to the notion of "free shares", as a position is worth what it's worth. I guess my usual approach is a bit different from many though, as I seldom go "all in" during the early stages, preferring to add more later on when the company starts to succeed (at least by my perception). I'll admit this often is a risky approach, as one can often be faked out, and one misses out on making money with companies who never get anywhere. If you're the type who likes to risk investing heavily early, the "free shares" approach is probably good.

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