Octagon 88 Issues Corporate Update
Octagon 88 Issues Corporate Update
OCTX announced it has filed a NT 10K to extend the period allowed for filing its June 30, 2013 annual audited financial statements. Management deemed this appropriate to allow sufficient time for the consolidation of the financial results of its interest in CEC North Star Ltd ("CEC North Star").
CEC North Star is a private Canadian company with significant oil and gas operations reporting under the Alberta Business Incorporations Act, financial reporting requirement, which are not parallel to US GAAP reporting. This required the Company to convert the CEC financial reports into U.S. GAAP for the purposes of the OCTX financial reporting, which required additional time.
Management states, "Our original investment decision in early 2013 was made upon our determination that CEC North Star was fully funded to carry out its major first year work program. This was accomplished without the Company´s need for further financing."
Now CEC North Star has advised it shareholders that it anticipates the costs of drilling and producing the first production well in October 2013 to be between 1.5 to 1.8 million.
Accordingly the Company has now drawn the equity portion from the existing Zentrum credit facility; this is sufficient to cover the cash call from CEC North Star. The drilling rig contract is due to be signed this week.
The expanded development plan below details how the Company and partners have developed a highly trusted confidence geological model for the area; specifically for the Elkton Erosional Edge from results derived from recent drilled wells, cores and seismic data.
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 33 percent of its shares.
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
KEYWORDS: Europe Switzerland
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