OEDVQ Osage Exploration and Development Inc (CE)

248% Revenue Growth Year-over-Year from Continuing Operations

560 BOEPD Exit Rate; 335 BOEPD Third Quarter Average Compared to Second Quarter Average of 193 BOEPD

Osage Exploration and Development, Inc. (OTCBB:OEDV), an independent exploration and production company focused on the Horizontal Mississippian and Woodford plays in Oklahoma, reported quarterly financial results for the three months ended September 30, 2013, amended to reflect the sale of its wholly-owned subsidiary as “discontinued operations”, and provided an update on production.

Record Quarterly Revenue

Osage reported an increase in revenues from continuing operations of 248% to $2.7 million during the third quarter of 2013 from $764,491 during the same period of 2012 primarily due to large quarter-over-quarter and year-over-year production increases in Osage’s Nemaha Ridge project in Logan County, Oklahoma.

Large Gain in Operating Income Year-over-Year

Operating income from continuing operations for the three months ended September 30, 2013 grew to $955,429 compared to a loss of $40,298 during the same period in 2012. The improvement in operating income is as a result of revenue growth vastly exceeding the increase in total operating expenses.

Highest Adjusted EBITDA in Company History

Adjusted EBITDA from continuing operations was the highest in the Company’s history adjusted for one-time items, growing approximately 878% to $1.57 million for the quarter compared to $160,436 for the same period in 2012.

      Three Months Ended September 30, Reconciliation of GAAP to Non-GAAP Results: 2013       2012     Net income (loss) $ (198,812 ) $ 250,976 Less: income from discontinued operations net of income taxes (590,318 ) (781,466 ) Add back: provision for income taxes - - Add back: interest expense, net 1,144,727 490,192 Add back: depreciation, depletion and accretion 728,486 186,934 Add back: unrealized losses on commodity derivatives 470,434 - Add back: stock-based compensation   14,750     13,800   Adjusted EBITDA from continuing operations $ 1,569,267   $ 160,436    

Decreased Quarterly Operating Costs

Due to much higher US production as well as efficiencies gained from improved infrastructure, operating costs per barrel in the US decreased from $20.55 during the second quarter of this year to $14.94 during the third quarter.

Strong Companywide Production Growth & Exit Rate

Average daily production from ongoing operations was 335 Barrels of Oil Equivalent Per Day (“BOEPD”) net of royalties during the third quarter of 2013 with a product mix composed of approximately 83% crude oil. During the same period of 2012, production from ongoing operations averaged 119 BOEPD net of royalties.

Compared to the second quarter of 2013, average daily production from continuing operations grew 73.5% in just 90 days from approximately 193 BOEPD to 335 BOEPD.

Osage exited the quarter with a monthly average daily production rate, gross of royalties, of approximately 560 BOEPD.

Discontinued Operations

On October 15, Osage announced the sale of a wholly-owned subsidiary, effective as of September 30, 2013, for $6.8 million in cash less settlement of debt of approximately $254,000. Consequently, the results, assets and liabilities of the Company’s wholly owned subsidiary, Cimarrona, LLC, have been presented as discontinued operations. As a result of the sale of Cimarrona, LLC, the Company has satisfied the amendment to the Apollo Note Purchase Agreement dated August 12, 2013 and is not obligated to issue additional warrants to Apollo.

Management Comments

"Logan County is rapidly becoming the heart of the horizontal Mississippian play in Oklahoma. Based on the recent results of other large Oklahoma-based companies, Logan County is beginning to exhibit some of the best Woodford acreage in the area as well. While there has certainly been a learning curve on the best practices to drill, complete, and produce these wells, multiple operators in our area seem to have solved the puzzle as evidenced by the level of results that we are seeing, well by well. As we move forward toward next year, the trajectory of this play is steepening. You will see that reflected in a growing level of activity and higher production rates. We have something very special here," stated Kim Bradford, Chairman and CEO.

Note With Respect to Non-GAAP Financial Measures

In addition to using GAAP financial results, the Company's management measures and reports Adjusted EBITDA, a non-GAAP financial measure. The most directly comparable GAAP financial result for this non-GAAP financial measure is Net Income (Loss). Management uses this non-GAAP financial measure to evaluate the Company's performance and operations and for business planning. In addition, management believes the exclusion or inclusion of certain amounts in calculating this non-GAAP financial measure can provide a useful measure to investors for period-to-period comparisons. This non-GAAP financial measure, however, should be used in addition to, and in conjunction with, the Company's financial results presented in accordance with GAAP. The Company strongly encourages investors to review its financial statements in their entirety and to not rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare the Company's results with other companies' non-GAAP financial measures having the same or similar names. Please see Reconciliation of GAAP to Non-GAAP Results above for a reconciliation of our GAAP to non-GAAP financial measures.

About Osage Exploration and Development, Inc.

Based in San Diego, California, with production offices in Oklahoma City, Oklahoma, Osage Exploration and Development, Inc. is an independent exploration and production company with interests in oil and gas wells and prospects in the U.S. http://www.osageexploration.com

About Apollo Investment Corporation

Apollo Investment Corporation (“AIC”, NASDAQ: AINV) is a leading provider of subordinated debt and equity capital to middle-market companies. We generate both current income and capital appreciation through debt and equity investments. AIC is managed by Apollo Investment Management and its corporate governance is provided by an independent board of directors. The company is registered with the SEC as a business development company under the Investment Company Act of 1940, which provides the company with structural advantages, including public liquidity and an advantageous tax structure. Our portfolio is comprised primarily of investments in subordinated loans and senior secured loans of private middle-market companies with equity interests such as warrants or equity co-investments. The value of our portfolio is determined by independent, third-party firms. Within the energy space, AIC is focused on $20 million to $200 million investments in oil and gas producers, oilfield service providers, midstream and alternative energy companies. http://www.apolloic.com

Safe Harbor Statement

The information in this release includes certain forward-looking statements as defined by the Securities and Exchange Commission that are based on assumptions that in the future may prove not to have been accurate. Those statements and Osage Exploration and Development, Inc. are subject to a number of risks, including production variances from expectations, volatility of product prices, inability to raise sufficient capital to fund its operations, environmental risks, competition, government regulation, and the ability of the Company to execute its business strategy, among others.

Osage Exploration and Development, Inc.Kim Bradford, President and CEO619-677-3956kbradford@osageexploration.comorJack Zedlitz, VP of Corporate Development405-270-0989jzedlitz@osageexploration.comhttp://www.osageexploration.com