TN PETRÓLEO

California-based oil junior Osage Exploration and Development (OTC BB: OEDV) has acquired 100% of Colombian oil company Cimarrona, Osage CEO Kim Bradford told BNamericas.

Cimarrona owns a 9.4% interest in the Guaduas field in Colombia`s Middle Magdalena valley and a pipeline asset that can transport up to 20,000b/d.

Toronto-based Pacific Rubiales Energy (TSX: PEG) holds the remaining 90.6% interest in both the Guaduas field and pipeline.

The new Colombian asset will give Osage about 90-100b/d of net production before operating expenses, Bradford said.

The company remains interested in other opportunities in Colombia and anticipates tax and corporate efficiencies by combining the new field with its existing operations in Colombia.

Several new deals are already in the works, Bradford added.

Osage announced in January that it had engaged Energy Capital Solutions to act as the sole financial advisor to help structure the acquisition.

Osage finalized in August 2007 the farm-in deal for the 427km2 Rosablanca concession held by London-based Gold Oil (LSE: GOO) in Colombia`s Middle Magdalena basin.

Drilling on the Rosablanca block is planned to begin in July depending on rig availability. Santa Fe-1 will be the first well on the block, according to Bradford.

In addition to Colombia, Osage has oil and natural gas interests in Texas and Oklahoma.