Zug, Switzerland (PRWEB) May 02, 2013
Octagon 88 Resources Inc. (OCTX) is pleased to provide its investors with the following executive update on its current active developments.
Elkton Erosional Edge
From recent core sample results received from AGAT laboratories, the Company has determined it has a second primary production project to bring on early cash flows in addition to the Bluesky Gething project. As the development advances the project will move to ERO (enhanced recovery) before proceeding with the last stage of thermal enhancement. The cash flows from Primary and ERO minimize the need for dilutive financings for full commercial development. The full report and further results confirming the successes of the project will be announced and made public in Company’s 8k filings. The Slumberger simulation study is currently underway. The confirmation of optimal recovery rates will be available to the Company by the end of May 2013.
Debolt Erosional Edge (New Project Introduction)
A coring program is being designed to be implemented in parallel with the drilling program on the Elkton for late 2013. Two separate Erosional edge targets have been now identified via the tremdous well control provided in the past via the 25 plus wells drilled prior in the immediate area. With the expected final confirmation of the Elkton Lab results the Company is now moving a priority focus to all Erosional Edge projects identified in the leases. The establishment of Primary production possibilities has become the “game changer” from previously designed typical but successful Thermal production methods. The economics are the major change and the advantages to our shareholders are substantial as it minimizes the Company’s need for external financing.
CEC North star has recently reported to the Company that they commissioned the follow up 3D seismic on behalf of Octagon 88 to be implemented in the field immediately. The second stage 3D seismic will be completed by the end of May, being two months earlier than initially scheduled. The seismic data will be included in both the feasibility studies and reserve reports on all engaged projects. The 3D seismic will furthermore provide crucial information for additional coring and licensing of the first production test well on the project. Similarly to the Elkton Project, the Slumberger simulation analysis is currently active to establish the best recovery methods for optimal recovery rates.
Octagon 88 Resources is pleased to advise that the surveying for the first of 2 of 4 wells on the Company’s Light Sweet Crude project is currently underway. When the surveying is concluded the Company will proceed to license the wells for scheduled drilling in the third quarter of 2013.
“Octagon 88 is extremely pleased with the work done by the CEC North Star group. The interrelationships and contributions between the two companies have been tremendous. The synergy of the companies developing the projects has over-succeeded expectations regarding time lines and results. It is a demonstration of how qualified groups of management covering multiple aspects required for a project have created momentum and competitive advantages. The Company will now focus on furthering acquisition opportunities inventoried, growing the Company byway of M&As, solidifying Octagon 88 as a consolidator of developmental assets.”
Octagon 88 Resources Inc.
In 2012 / 2013 Octagon 88 Resources, Inc. acquired substantial light and conventional heavy oil assets in Northern Alberta. The acquired projects have been substantially de-risked which leads the company to emerge as a development stage oil and gas company as of January 22, 2013. The company’s intention is to grow shareholder value through mergers and acquisitions opportunities available to the company. Octagon 88 Resources is the largest publicly trading shareholder of CEC North Star Ltd. with a 33% ownership.
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.
CEC North Star Energy Ltd.
CEC North Star Energy Ltd is a non-public Calgary based Energy Corporation with a substantial Oilsands lease holding in the Peace River block of north western Alberta Canada.
CEC North Star has acquired sixty-seven (67) sections of oilsands leases. The independent petroleum engineering firm conducted a feasibility study 139 Mil (NPV @ 10% fully risked) based on a typical four sections development of the Elkton/Debolt. In addition the property is prospective for Bluesky/Gething oil sands formations which may lead to early primary production development similar to other projects in the Peace River Block offering significant production potential.
CEC North Star has entered into joint venture on adjoining properties consisting of 23 sections or 14,720 acres which may increase PIIP (Petroleum Initially in Place) to in excess of three (3) billion barrels.
CEC North Star’s vision is ultimately 100,000 bbl/d of bitumen from these lands and objectives are to create value by developing these Oilsands properties using scalable project development targeting multiple 5-10,000 bbl/d facilities with stakeholder involvement at every stage – Environment, Occupational Health and Safety are of paramount concern. Use of known technologies while remaining flexible to adopt new processes to maximize recovery of oil in place while reducing operating costs to the targeted sub $20/bbl and a relatively quick development schedule and lower capital costs compared to other oilsands projects resulting in maximum return on capital invested and quicker shareholder returns.
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 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2013. 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.