(PRWEB) November 11, 2013
Octagon 88 is pleased to announce that they have produced their first barrel of oil. Octagon 88 is the largest publically traded shareholder of CEC North Star holding 33% of the shares. CEC North Star holds exclusive rights to process oil in the Peace River block of the Alberta Oil Sands. The processed oil is the first step of the Manning Area Development Plan, and more specifically it is part of the Elkton Erosional Edge.
On October 21st the Manning projects operator confirmed that the first four days of production flow testing remained positive. The operator reported that the pump was running at 100 RPM, which clocks in at just a third of the optimal pump design rate. Currently, the well has produced from the bore and the fluids include heavy black crude oil and lighter brown oil. The operator reports that the gas production remains consistent, and that the AGAT lab results of the gas samples confirm that it is nearly 100% methane with no H2S presence.
The Manning operator reports:
“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.”
The next intermediate step, which is already underway, is to increase the RPMs of the pump to operate at targeted optimum rates. In the interim the oil samples in the tank will be shipped with samples headed for confirmation of the oil quality.
Information regarding the Elkton Erosional Edge:
- Third party officially validated 1.05 billion barrels PIIP
- 8% - 14% recovery rate
- Estimated cumulative 200 million barrels
- Recoverable peat production estimated to exceed 30,000 bbl/d
- Enhanced Oil Recovery exploitation targeting an additional 10% - 20% recovery rate
Verified through third party analysis, the core samples and well logs from the Elkton Erosional Edge are geologically unique as to the presence of unconsolidated oil sands. Along the edge of the consolidated limestone carbonates hold even greater oil quantities. Recent economic simulation testing proved that primary Cold Flow production will be used during the Elkton Erosional Edge project. This changes Octagon 88’s strategy, as now the operator will carry straight to production not requiring thermal recovery. This change will save exponentially on CAPEX costs and help achieve cash flow timelines.