ZUG, Switzerland--(BUSINESS WIRE)--Octagon 88 Resources Inc., (OTCBB:OCTX) is pleased to provide investors with confirmation of the first production well license submission. Extensive due diligence has been made to ensure its shareholders that the application approval process should be received and approved by the end of September.
The Company’s technical team has confirmed that upon receipt of target that it will initiate the well pad construction on the Eltkon Erosional Edge. The Company’s new accelerated timeline to spud the first production well on the Elkton Erosional Edge will be based on drill rig availability.
This well targets primary recovery methods to scale production for approx. 200 million recoverable barrels of 13 to 15 °API heavy oil in the Elkton Erosional Edge, this is based on recent recovery rates that were produced by the dynamic simulation testing conducted by third party recovery engineers.
Updated PIIP (Petroleum Initially In Place) Engineering validations will be released in an updated report next week, these validations will be based on all three Manning projects being the Elkton, Debolt and Bluesky. The PIIP confirmations will include the new lands acquired, and is expected to provide investors with larger PIIP figures on the Manning projects.
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.