Exhibit
10.25.1 


 


Report
of Petrotech Engineering Ltd.


 


PETROTECH
ENGINEERING LTD.


7536
Manzanita Place, Burnaby, B. C., Canada V3N 4X1 Phone: (604) 525 6896 


Email:
johnyu@axion.net


 


March
28, 2013


 


Ref:
13 - 15


 


Osage
Exploration and Development, Inc.


2445
5th Avenue, Suite 310


San
Diego, California, USA 92101


 


Attention:
Norman Dowling, CFO


 


Sir:


 


	Re:      	Evaluation
    of the Interests of Osage Exploration and Development, Inc. in the 
	 	Guaduas
    Field in the Middle/Upper Magdalena Valley, Onshore Colombia


 


At
your request, we have prepared an engineering and economic evaluation of the interests of Osage Exploration and Development, Inc.
(here-in-after referred to as the “Company”) in the Guaduas Field with proved and probable oil and gas reserves in Colombia.
Cimarrona, LLC owns a 9.4% working interest in the Guaduas Field subject to 20% royalty payable to Ecopetrol. The operator is
Pacific Rubiales Energy Corp. Cimarrona, LLC is a wholly-owned subsidiary of the Company. The evaluation is prepared using an
effective date of December 31, 2012. The purpose of this evaluation is to provide information for the annual filing with the United
States Securities and Exchange Commission.


 


This
evaluation uses the definitions of reserves and resources of the Society of Petroleum Engineers in 2007 (see Definitions of Reserves).
The net cash flow is calculated at constant prices and costs on the reserves, to all future time and after deduction of
the capital costs, royalties but before deduction of income tax. All cash flow data is in U. S. dollars. A summary of the Company’s
net share of proved producing, non-producing, undeveloped and probable reserves and net share of the future present worth net
cash flow, discounted at 0, 5, 10, 15, and 20% before income tax, is presented as follows:


 


Onshore
Colombia


 


	 	 	Heavy Oil Reserves	 	 	Gas Reserves	 	 	Before Tax NPV @	 
	 	 	100%		 	Gross	 	 	Net	 	 	100%		 	Gross	 	 	Net	 	 	0%		 	5%		 	10%		 	15%		 	20%	
	Reserve Category	 	Mbbl	 	 	Mbbl	 	 	Mbbl	 	 	MMcf	 	 	MMcf	 	 	MMcf	 	 	M$	 	 	M$	 	 	M$	 	 	M$	 	 	M$	 
	Proved Producing	 	 	1,299	 	 	 	135	 	 	 	108	 	 	 	3,266	 	 	 	307	 	 	 	246	 	 	 	7300	 	 	 	6,287	 	 	 	5,510	 	 	 	4,900	 	 	 	4,413	 
	Probable Undeveloped	 	 	1,253	 	 	 	118	 	 	 	94	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	5,571	 	 	 	4,737	 	 	 	4,073	 	 	 	3,537	 	 	 	3,099	 
	Total Proved & Probable	 	 	2,552	 	 	 	253	 	 	 	202	 	 	 	3,266	 	 	 	307	 	 	 	246	 	 	 	12,871	 	 	 	11,024	 	 	 	9,583	 	 	 	8,437	 	 	 	7,512	 



  


Figures
of the reserve data and net present values may be rounded off.


 






    	 



    	 



    

 


Details
of the proved producing, non-producing, undeveloped and probable reserves together with the net present values discounted at 0,
5, 10, 15, and 20% are shown in Summary Table 1. The gross reserve is the Company’s share of production before royalties
and the net reserve is the Company’s share of production after deduction of royalties. The royalties on the oil are paid
in kind for Colombia.


 


The
average oil price for the Guaduas Field was $104.92 based on the average sales price per month and the weighted average gas price
was $4.82 per Mcf based on $779,844 received for 161,594 Mcf of gas sold at year-end 2012 (See Constant Oil and Gas Prices).


 


At
this time, the operator intends to drill the development wells as per schedule. No more exploration target has been identified
at this time and no exploration drilling is anticipated. Although the Ecopetrol’s Association Contract has a provision to back-in
for 50% of the production after the deduction of royalties, this most likely may not happen because no exploration is anticipated
in the future.


 


The
estimated net present values do not represent a fair market value. The abandonment costs of the wells are normally incorporated
at the end of the economic life. The recoverable proved and probable reserves are estimated using production decline methods,
volumetric data, well performance and well spacing in the immediate area of each entity (see production plots). In reviewing the
reserves estimates provided, it should be understood that there are inherent uncertainties and limitations with both the database
available for analysis and the interpretation of such engineering and geological data. The judgments used in assessing the reserves
are considered reasonable given the knowledge of the property reviewed. Our estimates are prepared using standard geological and
engineering methods generally accepted by the petroleum industry, and the reserves definitions and standards required by the United
States SEC. The method or combination of methods used is based on our professional judgment and experience. Estimates may change
substantially as additional data from ongoing development activities and production performance becomes available and as economic
conditions impacting oil and gas prices and costs change. Field inspections of the properties were not conducted and not considered
necessary in view of information available from public information and records and data provided by the Company. All procedures
and methods have been considered under the circumstances to prepare this report.


 


If
additional information is required, please advise.


 


Respectfully
Submitted,


 


Petrotech
Engineering Ltd.


 


	/s/
    John Yu	 


John
Yu, P. Eng.