Octagon 88 Resources' Final Lab Core Results From Elkton Exceeds Initial Expectation With Oil Density Greater Than 14° API - Focus Now Shifts To The Very Unique Elkton Erosional Edge Development Project
NEW YORK--(BUSINESS WIRE)-- Ernest C. Schlotter, a senior analyst with Zurich, Switzerland-based SISM Research and a four star analyst according to Reuter's StarMine, released his extended asset portfolio analysis on Octagon 88 Resource, Inc. (OTCBB:OCTX) after the Company released its final AGAT laboratory core results from the Elkton formation. The final results confirm and go beyond the technical team's initial expectations; the unique Elkton formations are proven to be more attainable thus more operationally cost-effective than originally expected, exceeding an oil density of 14° API.
Reservoir Comparison Elkton Erosional Edge - Bluesky Formation (Graphic: Business Wire)
We are re-issuing our May 6th research report to include the Elkton Erosional Edge Project as the final results from AGAT Laboratories came out after we finished the report. Based on the AGAT Lab results, the core samples which have been taken from the Elkton Erosional Edge coring operations in March 2013 delivered much better results than estimated by CEC North Star technical team. As the Company's Elkton Erosional Edge Project is so unique and not comparable to other projects in the Peace River area, we compare the oil and rock properties with the very successfully producing Bluesky/Gething Formation in Peace River.
-SISM Report May 14,2013
In our last extensive update we state that Octagon has multiple projects in diversified reservoirs and a low risk Bluesky/Gething "clastic" play. However, based on better lab results, Octagon's focus shifts now to the Elkton Project, as this play has better oil quality then the proven Bluesky/Gething producing formation in the Peace River area. This high oil quality should allow cold production in the project area, which will change the economics significantly. Based on our NAV calculation of $23.13 we determined a 12-month target share price of $23.00. We have a speculative buy rating on the stock of Octagon 88 Resources Inc. and recommend the shares to be purchased by long-term investors.
-SISM Report May 14, 2013
The full report can be found by clicking below; the report includes important analyst information and disclosures:
SISM Research 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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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 the 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.
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/
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