Octagon 88 Resources Announces New Drilling Program Targeting Light Sweet Crude in Red Earth Alberta
ZUG, Switzerland--(BUSINESS WIRE)-- Octagon 88 Resources, Inc. (OCTX), announced today that it has engaged CEC North Star Energy Ltd of Calgary, Alberta to license and operate a summer drilling program for the first of two drill targets on leases owned in the Red Earth area of north central Alberta Canada. These Keg River drill targets are in an area which historically has been known to have initial production ranging from 150 to 450 barrels a day of light crude with the extra benefit of low operating costs, long production curves and high net backs resulting in quick payouts.
Octagon 88 owns 100% working interest in the Red Earth leases, Octagon has now engaged CEC North Star to be the operator, this being a direct result from recent success of the coring program completed in Q1, 2013.
This first well will be fully funded under the Company's existing financing agreement with Zentrum Energie Trust AG, a Private Equity firm in Zug, Switzerland.
The Company's goal is to bring on significant early cash flows in 2013. This with the forth coming lab results from both the Bluesky Gething and Elkton Erosional Edge coring programs will ultimately enable the Company to obtain feasibility studies and updated third party engineering reserve reports. This is a fundamental step in a goal of applications for listing the Company's shares on more senior exchanges.
The Company by taking these steps intends to continue to grow shareholder value by means of acquisitions and further merger opportunities currently under review.
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.
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