SISM Research, Second Coring Operation Targeting The Bottom Of The Elkton/Debolt Formation Was A Suc
SISM Research, Second Coring Operation Targeting The Bottom Of The Elkton/Debolt Formation Was A Success - Well Logs Indicated An Oilsands Pay Zone Of 20 Meters And Primary Production - A Game Changer
NEW YORK--(BUSINESS WIRE)-- Ernst C. Schlotter, a senior analyst with Zurich, Switzerland-based SISM Research and a four star analyst according to Reuter's StarMine, released his valuation updates on Octagon 88 Resource, Inc. (OCTX). After reviewing both of the preliminary results of the two wells cored, SISM summarizes the NAV of Octagon 88's projects to $23.11 a share.
As the Company's geologist/geophysicists expected, preliminary results from the Erosional Edge Elkton/Debolt coring program showed a pay zone of 20 meters and a porosity of 30 percent instead of 18 percent which has been estimated and reported a few days ago. This means there is more oil in the targeted pay zone formation. In addition the cores showed a fluoresced orange throughout the complete pay zone indicating a lighter heavy oil to produce with primary production methods. An approximately API of 9° is needed that the oil can flow with the chance of primary production without stimulation or EOR (enhanced oil recovery) making economics very favorable and bases on porosity, there is enough oil to pump to the surface. The porosity consists of the tiny spaces in the rock that holds the oil or gas. Porosity of a rock is a measure of its ability to hold a fluid. Porosity is the open space in a rock divided by the total rock volume (solid + space or holes). Porosity is expressed as a percentage of the total rock which is taken up by pore space. Octagon cores samples showed a porosity of 30 percent. This means 70 percent is solid rock and 30 percent is open space containing oil, gas, or water. Octagon 88 Resources has recently announced that the coring program targeting the Elkton Debolt Erosional Edge Formation was successfully completed. The cores have been taken to AGAT laboratories for analysis. Within two weeks, Octagon 88 Resources, Inc. and CEC North Star Energy as the operator drilled two core wells, targeting the Bluesky/Gething sandstone formation and the carbonate Elkton/Debolt - Erosional Edge Formation on the project land.
-SISM Update Report - April 02, 2013
Core samples indicate a geologically unique situation as to the presence of unconsolidated oilsands at the edge of the consolidated limestone carbonates holding even larger quantities of oil. Based on the positive discoveries from two core drillings, we increase the NAV of Octagon's projects to $23.11 a share.
-Ernst Schlotter, SISM Research
The full report can be found by clicking below; the report includes important analyst information and disclosures:
SISM Research http://www.sism.com is a private investment research firm, based in Zurich, Switzerland, offering independent, fundamental research on public companies since 1995. SISM Research publishes research on micro- to small-cap companies trading on the OTC, NASDAQ, AMEX and TSX stock exchanges. SISM research coverage platforms are geared toward institutional and individual investors in both North America and in Europe. SISM Research, as a member-provider of the FIRST Research Consortium http://www.investrend.com/FIRST , takes steps to ensure the independence and integrity of SISM's published research that exceed those of the CFA Institute Code of Ethics and Standards of Professional Conduct and the CFA-NIRI Guidelines, by following the exacting "Standards for Independent Research Providers", which are also in accordance with guidance set forth by U.S. Securities and Exchange Commission's Advisory Committee on Smaller Public Companies.
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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.
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, 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.
SISM Research & Investment Services ("SISM") is a research and analysis firm that produces company and industry research reports. This report is based on SISM's independent analysis and judgment, but relies on materials supplied by the subject companies and other sources believed to be reliable. Except as otherwise indicated, SISM has made no independent verification and does not guarantee the information's accuracy or completeness. The information in this report is subject to change without notice, and SISM assumes no responsibility to update the information contained in this report. This report should not be used as a complete analysis of the companies, industries or securities described in this report. The information contained in this report is not intended to be, and shall not constitute, an offer to buy any security. The securities of the subject companies may involve a high degree of risk and may not be suitable for all investors. Investors are advised to consult their personal broker or investment advisor before making any investment decision concerning the subject companies. This report contains forward-looking statements made pursuant to the safe harbor provision of the Private Securities Act of 1995. This information may involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. No promise of favorable point of view or opinion has been made by SISM to Octagon 88 Resource Inc. or to any of SISM's subject companies. Further, it is SISM's policy that neither the firm nor its principals, nor the firm's assigned and/or other writing analyst(s) own or trade shares of any subject companies or subject companies' "competitors". To assist the reader they should develop their own information they should go to the company website at http://www.octagon-88.com/
Octagon 88 Resources Inc.
Tel:(+41) 79 237 6218
Ernst Schlotter, (+41) 44-881-2020
Alexander Baldi, (+41)79- 256-9534
KEYWORDS: United States North America New York
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