Octagon 88 Resources Provides Manning Project Update From CEC North Star
Executive Summary Including New Potential Billion Barrel PIIP Resource & New
ZUG, Switzerland -- August 12, 2013
Octagon 88 Resources Inc., (OCTX) is pleased to provide an update from CEC
North Star’s executive summary of the Plan Of Development (POD). The POD
proposes a combined phased development of the “Manning Projects” which are
located in the Peace River block of north-western Alberta, Canada. The land
contains a projected 3+ billion barrels of Petroleum Initially in Place
(PIIP), based on 3^rd. party oil engineering reports and management estimates.
For a complete review of the 8-K dated August 7, 2013, please click the
following link below:
Executive Summary August 2013
The POD defines the first development to target the primary recovery methods
of approximately 200 million recoverable barrels of 13 to 15 °API heavy oil in
the Elkton Erosional Edge. The development plan provided in the POD, were
based on forecasted recovery rates produced by the dynamic simulation testing
recently conducted by Schlumberger Ltd on the first project.
First Project: Elkton Erosional Edge
*Eight-hundred and seventy plus (870+) million barrels PIIP (Third-Party
*Primary recovery methods (cold flow) of oil in the Elkton Erosional edge,
with an 8% to 14% recovery rate combined with staged and scalable 5,000
bbl/d to 10,000 bbl/d projects.
*Developed over 25+ years with peak oil production rate occurring near the
end of year 4 (2018) at over 30,000 bbl/d and over 200 million barrels of
recoverable oil using only primary production and waterflooding…
*Including the use of infill drilling and then subsequent pressure
maintenance with an additional 8% recovery. Followed in later stages with
EOR methods achieving a forecasted potential recovery rate of 40% + .
*Use of single vertical wells with 5 to 10 horizontal legs and single pumps
to minimize capital and maximize recovery. Initial production is projected
to be 175 bbl/d with a harmonic depletion curve.
*Findings down dip from the Erosional Edge Elkton and Debolt formations
indicate a potential additional 1+ billion barrels PIIP (internal
estimate) not previously identified or reported.
Additionally, 3’840 acres have recently been acquired as an expansion of the
Elkton project to capture the balance of the Elkton sweet spot. The expansion
of land base results in a 18-20% increase of the size of the Elkton Erosional
Edge project which was originally estimated by 3^rd party engineers to hold
870+ million barrels.
The licensing process for drilling has begun to spud the first production
wells; targeting initial oil sales to commence in the first quarter of 2014 as
outlined in the POD from the Elkton Erosional Edge Project.
A new 3^rd party oil engineering report has been commissioned to confirm the
updated larger PIIP estimates. This has been established by the core drilling
and seismic acquired on all three projects: the Elkton, Debolt and Bluesky
Gething which is expected to be received by the end of August 2013.
Octagon 88 Resources Inc.
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 thirty-three percent (33%) of its shares.
CEC North Star Ltd.
CEC North Star Energy Ltd is a private Canadian Oil Company moving to
production and cashflows in the near term. It holds substantial heavy oil
oilsands leases in the Peace River block of north western Alberta Canada.
CEC North Star has acquired seventy-three (73) sections respectively 46,720
acres of leaseholds. The leases have been confirmed to hold multiple projects
all independently developable, using existing proven production methods.
Primary or cold flow production possibilities exist in the Elkton and Bluesky
Gething projects substantially reducing the Capex costs of getting to full
scale commercial development.
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 four (4) billion barrels.
CEC North Star goals of ultimately producing 200,000 bbl/d of bitumen from
these lands and to create value for the shareholders by developing these
oilsands properties using scalable project development targeting multiple
5-10,000 bbl/d facilities. 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 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
CEC North Star Ltd.
Tel:(+41) 79 237 6218
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