(PRWEB) November 07, 2013
The operator reports it has been running the pump at 100 RPM which is a third of the pump design rate. The well has been producing from the well bore, fluids including heavy black crude oil and lighter brown oil. Gas production remains consistent and the AGAT lab results on the testing of gas samples confirms it is almost 100 % methane with no presence of H2S (hydrogen sulphide).
"Fluids in the well bore are sustaining now at 310m and the last full 24 hour period showed a change where pressure stabilized and gas appeared to being held back by the fluids. The volumes of fluids being produced are substantially higher than forecasted."
- Manning Projects Operator
With the stability down hole the operator will now start increasing the RPMs the pump runs at targeting optimum rates on the seventh day - of the ten day production test being conducted.
In the near term the oil samples in the tank will be shipped out with samples going to AGAT for confirmation of the quality of the oil.
Geologically Unique - Elkton Erosional Edge:
- 1.05 billion barrels PIIP.
Primary recovery of oil in the Elkton Erosional Edge with 8% to 14% recovery rate with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects.
- To be followed up with infill drilling and then subsequent pressure maintenance with and additional 8+% recovery rate for an estimated cumulative 200 million barrels.
- Recoverable peak production exceeding 30,000 bbl/d.
- Enhanced Oil Recovery exploitation targeting an additional 10% to 20% recovery rate with proven EOR technologies.
The Company has verified through third party analysis that the core samples and well logs from the Elkton Erosional has been proven to be geologically unique as to the presence of unconsolidated oil sands at the edge of the consolidated limestone carbonates holding even larger quantities of oil. Recent economic simulation testing has proven that primary (Cold Flow) production will be the production method used for the Elkton Erosional Edge, this is the Company's game changing aspect, as the operator will now carry on straight to production not needing thermal recovery thus saving exponentially on CAPEX costs and cash flow timelines.
The expanded development plan below details how the Company and partners have developed a highly trusted confidence geological model for the area; specifically for the Elkton Erosional Edge from results derived from recent drilled wells, cores and seismic data.
Octagon 88 Resources, Inc. has acquired substantial light and conventional heavy oil assets in Northern Alberta. The CEC North Star project has been substantially de-risked which leads the company to emerge as a development stage oil and gas company. The current program schedule entails working with the operator of these properties to bring on production and cash flow through the company’s direct working interests, and indirect investments spread throughout the projects.
This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2013 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2012. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.