Octagon 88 Resources Receives Elkton Drill Rig Confirmation from Operator


Octagon 88 Resources Receives Elkton Drill Rig Confirmation from Operator

ZUG, Switzerland--(BUSINESS WIRE)-- Octagon 88 Resources Inc. (OCTX) has received confirmation from the Manning projects operator that the drill rig has been contracted and mobilized for the spudding of the first primary production well 9-4-92-23-W5 on the Elkton erosional edge. The nearing production phase has the company focusing on the Elkton project as the economics have substantially improved since the formation's erosional edge has been found, termed geologically unique to Canadian oil production.

First Manning Production Project: Elkton Erosional Edge

  • 1.05 billion Barrels PIIP (third-party validated).

  • Developed over 25+ years with peak primary oil production rate occurring near the end of year 4 (2018) at over 30,000 bbl./d

  • Extra testing is being concluded on the Elkton formation's geologically unique erosional edge to maximize production capacity.

  • Primary Production of Oil in the Elkton Erosional Edge, an 8% to 14% recovery rate to be followed up with infill drilling and then subsequent pressure maintenance with an additional 8% recovery rate for a cumulative 200,000,000 recoverable barrels. Thermal recovery methods will be added in later years increasing the total recovery rate to an expected 40%.

The Company has advised that the vertical leg of the first Elkton production well will spud next week. The Company expects the "kick-off" of the horizontal well, meaning the production leg, to commence ten days after the initial spudding of the vertical well.

Octagon 88 Resources

Octagon 88 Resources, Inc. has acquired substantial light and conventional heavy oil assets in Northern Alberta. The CEC North Star Ltd projects have 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.

Forward-looking Statements:

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
Investor Relations
Helvetic Prime
Alexander Baldi
Tel:(+41)79- 256-9534

KEYWORDS: Europe Switzerland


The article Octagon 88 Resources Receives Elkton Drill Rig Confirmation from Operator originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Originally published