Octagon 88 Resources Provides Manning Project Update From CEC North Star Executive Summary Including
Octagon 88 Resources Provides Manning Project Update From CEC North Star Executive Summary Including New Potential Billion Barrel PIIP Resource & New Land Acquisitions
ZUG, Switzerland--(BUSINESS WIRE)-- Octagon 88 Resources Inc., (OCTX) is pleased to provide an update from CEC North Star's executive summary of the Plan Of Development (POD). The POD proposes a combined phased development of the "Manning Projects" which are located in the Peace River block of north-western Alberta, Canada. The land contains a projected 3+ billion barrels of Petroleum Initially in Place (PIIP), based on 3rd. party oil engineering reports and management estimates.
For a complete review of the 8-K dated August 7, 2013, please click the following link below:
The POD defines the first development to target the primary recovery methods of approximately 200 million recoverable barrels of 13 to 15 °API heavy oil in the Elkton Erosional Edge. The development plan provided in the POD, were based on forecasted recovery rates produced by the dynamic simulation testing recently conducted by Schlumberger Ltd on the first project.
First Project: Elkton Erosional Edge
- Eight-hundred and seventy plus (870+) million barrels PIIP (Third-Party Estimate).
- Primary recovery methods (cold flow) of oil in the Elkton Erosional edge, with an 8% to 14% recovery rate combined with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects.
- Developed over 25+ years with peak oil production rate occurring near the end of year 4 (2018) at over 30,000 bbl/d and over 200 million barrels of recoverable oil using only primary production and waterflooding...
- Including the use of infill drilling and then subsequent pressure maintenance with an additional 8% recovery. Followed in later stages with EOR methods achieving a forecasted potential recovery rate of 40% + .
- Use of single vertical wells with 5 to 10 horizontal legs and single pumps to minimize capital and maximize recovery. Initial production is projected to be 175 bbl/d with a harmonic depletion curve.
- Findings down dip from the Erosional Edge Elkton and Debolt formations indicate a potential additional 1+ billion barrels PIIP (internal estimate) not previously identified or reported.
Additionally, 3'840 acres have recently been acquired as an expansion of the Elkton project to capture the balance of the Elkton sweet spot. The expansion of land base results in a 18-20% increase of the size of the Elkton Erosional Edge project which was originally estimated by 3rd party engineers to hold 870+ million barrels.
The licensing process for drilling has begun to spud the first production wells; targeting initial oil sales to commence in the first quarter of 2014 as outlined in the POD from the Elkton Erosional Edge Project.
A new 3rd party oil engineering report has been commissioned to confirm the updated larger PIIP estimates. This has been established by the core drilling and seismic acquired on all three projects: the Elkton, Debolt and Bluesky Gething which is expected to be received by the end of August 2013.
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 thirty-three percent (33%) of its shares.
CEC North Star Energy Ltd is a private Canadian Oil Company moving to production and cashflows in the near term. It holds substantial heavy oil oilsands leases in the Peace River block of north western Alberta Canada.
CEC North Star has acquired seventy-three (73) sections respectively 46,720 acres of leaseholds. The leases have been confirmed to hold multiple projects all independently developable, using existing proven production methods. Primary or cold flow production possibilities exist in the Elkton and Bluesky Gething projects substantially reducing the Capex costs of getting to full scale commercial development.
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 four (4) billion barrels.
CEC North Star goals of ultimately producing 200,000 bbl/d of bitumen from these lands and to create value for the shareholders by developing these oilsands properties using scalable project development targeting multiple 5-10,000 bbl/d facilities. 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 and a relatively quick schedule and lower capital costs compared to other oilsand 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. 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.
Octagon 88 Resources Inc.
Tel:(+41) 79 237 6218
CEC North Star Ltd.
Tel:(+41) 79 237 6218
KEYWORDS: United States Europe North America Canada Switzerland
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