Octagon 88 Resources and CEC North Star Release Successful Results of the
Bluesky/Gething Cores - AGAT Laboratory Analysis
NEW YORK -- April 8, 2013
Octagon 88 Resources Inc (OCTX) and CEC North Star Energy Ltd are pleased to
announce the AGAT laboratories results on the successful Bluesky/ Gething well
cores confirm Primary Production methods to be implemented in 2013.
"The lab analysis verified a API of the oil at 10.73 and viscosity at
formation conditions of less t ...
"The lab analysis verified a API of the oil at 10.73 and viscosity at
formation conditions of less than 50,000 cp and additional testing established
good response to testing. These results are in the range of primary production
recovery or "coldflow" projects." (Graphic: Business Wire)
Summary of AGAT Results of Bluesky/Gething Well
Location : 08-12-091-22W5M
“Excellent cap rock with oil and gas traces present in all the cores taken
after entering the zone. Overall 30 meters of oil bearing sands and
sand/shales were identified containing two high quality sand zones with
intermediate zones containing shale stringers. The only water contact was at
the very bottom of the zone. The lab analysis verified an API of the oil at
10.73 and viscosity at formation conditions of less than 50,000 cp and
additional testing established good response to testing. These results are in
the range of primary production recovery or “coldflow” projects. Rock analysis
underway now will provide us with the permeability. At a minimum we believe we
have established a SAGD or CSS project but have many reasons to believe
initial primary production will be established enhancing the economics.”
-CEC North Star Technical Team
The Company’s next step is to proceed with laboratory simulation carried out
by extensive 3^rd party modeling to produce the optimal secondary production
methods providing recovery rates of 40%-60%. The fore mentioned recovery rates
have been proven in the Bluesky formation by companies like Royal Dutch Shell
The Company has now commissioned a 3D seismic program to be implemented in the
summer months of 2013, ultimately leading to the licensing of two to six wells
for primary production in the 4^th quarter of 2013.
The results of the second targeted well, the Elkton Erosional Edge are being
analyzed and is anticipated to be released by the Company shortly. These first
two projects combined will target scaled development possibilities of 50,000
barrels per day of conventional heavy oil production beginning this year.
Octagon 88 Resources
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.
CEC North Star
CEC North Star Energy Ltd is a non-public Calgary based Energy Corporation
with a substantial oilsands lease holding in the Peace River block of north
western Alberta Canada.
CEC North Star has acquired sixty-seven (67) sections respectively 39,040
acres of leaseholds with a prospective resource of 873 MM bbl (Best Estimate)
PIIP in the Elkton Debolt formations based on a 25 section independent
analysis. The same independent petroleum engineering firm conducted a
feasibility study 139 Mil (NPV @ 10% fully risked) based on a typical four
sections development of the Elkton/Debolt. In addition the property is
prospective for Bluesky/Gething oil sands formations which may lead to early
primary production development similar to other projects in the Peace River
Block offering significant production potential.
CEC North Star has entered into joint venture on adjoining properties
consisting of 23 sections or 14,720 acres which may increase PIIP (Petroleum
Initially in Place) to in excess of three (3) billion barrels.
CEC North Star goals of ultimately 200,000 bbl/d of bitumen from these lands
and objectives are to create value by developing these oilsands properties
using scalable project development targeting multiple 5-10,000 bbl/d
facilities with stakeholder involvement at every stage – Environment,
Occupational Health and Safety are of paramount concern. Use of known
technologies while remaining flexible to adopt new processes to maximize
recovery of oil in place while reducing operating costs and a relatively quick
schedule and lower capital costs compared to other oilsand projects resulting
in maximum return on capital invested and quicker shareholder returns
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 December31, 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.
Photos/Multimedia Gallery Available:
Octagon 88 Resources Inc.
Tel:(+41) 79 237 6218
CEC North Star Ltd.
+1 587 353 5550
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