ZUG, Switzerland--(BUSINESS WIRE)--
Octagon 88 Resources Inc., (OCTX) pleased to provide shareholders with the expanded version of the Manning Area Development Plan. The purpose of the expanded development plan is to define the sum of Octagon 88’s acquired projects with a review specifically targeting the Elkton Erosional Edge Project including geology, exploitation plans, economics, specific goals, timelines and expected deliverables. The report outlines how the Company and partners have developed a highly trusted confidence geological model for the area; specifically for the lands with qualified third party economic models being derived from recent drilled wells, cores and seismic data.
THE PRIMARY TARGET - THE ELKTON EROSIONAL EDGE, a shallow (460M) Mississippian aged Elkton high porosity medium permeability oil saturated Limestone. The simple erosional edge geologic model has proven to trap significant heavy oil reserves based upon well log and core data. With over 1.05 billion STB PIIP (third party estimate) of conventional heavy oil (13 – 15 deg API) and which can be developed with horizontal wells starting with primary recovery with subsequent infill drilling targeting 10% – 12 % recovery of the oil in place, followed by water flood for a further 8+% using secondary recovery techniques and then subsequent EOR projects. The project would be developed over 25+ years with peak oil rate occurring at the end of year 4 at over 30,000 bbl/d and over 200+ million bbls of recoverable oil using just primary and water flood during the first 25 yrs as studied in the following models. The well economics extend much longer and initial review shows 35+ years.
The estimated recovery rates are developed by internal industry professionals by compiling third party qualified studies with publicly released reports of comparable projects of other oil and gas companies.
THE SECOND TARGET – DEBOLT ZONE (erosional Limestone) – with an additional 200 million STB PIIP (third party estimate) of heavy oil with development plans yet to be fully developed however the exploitation plan is expected to be similar.
THE THIRD TARGET – BLUESKY OILSANDS CHANNELS (Marine sandstone) – The Bluesky Formation is the major producing zone in the Peace River area of northern Alberta. It is a sandstone that was deposited in the Lower Cretaceous within a marginal marine environment. Major operators south of Manning include Shell, Baytex, Penn West, Koch and Murphy. Internal total estimates for this project exceed 800+ STB PIIP, recent third party estimates already have confirmed 400+ million STB PIIP of conventional oil sands with potential for primary recovery to be followed with multiple 5-10,000 bbl/d thermal SAGD projects.
THE FOURTH TARGET(S) – down dip and immediately below the two
erosional edges, the Elkton and Debolt the transition zones contain
additional oil in limestone layers progressing from the highly oil
saturated zones below the erosional edge to water bearing zones 20 to 30
meters deeper. These zones would be exploited in later stages using
existing technology. An estimated 1-2 billion barrels PIIP (internal
estimate) reside in these layers.
-Manning Area Development Plan - September 2013
As previously stated in an earlier release, the Company’s technical team has confirmed that upon receipt of the production well license that it will initiate the well pad construction on the Eltkon Erosional Edge. The Company expects the license approval to be received at the end of September. Initial spudding of the first production well on the Elkton Erosional Edge will be based on drill rig availability.
For the complete Expanded Development Plan please click the link below:
Octagon 88 Resources, Inc. has acquired substantial light and conventional heavy oil assets in Northern Alberta. The CEC North Star Ltd 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.
Octagon 88 Resources is the largest publicly traded shareholder of CEC North Star currently holding 33 percent of its shares.
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.
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