ZUG, Switzerland--(EON: Enhanced Online News)--Octagon 88 Resources Inc., (OCTX) is pleased to announce it has received a copy of the CEC North Star Ltd. Annual Report. The report forecasts 1.6 billion barrels PIIP (Petroleum Initially In Place) in the Manning Oil play which has been validated by an industry qualified third party oil and gas engineering firm. In the annual report CEC North Star has provided an in-depth insight to project timelines, deliverables and forecasted cash flows.
A plan of development (POD) has been compiled that proposes a combined phased development of the “Manning Projects” that are located in the Peace River block of northwestern Alberta, Canada. The lands contain a projected 3+ billion barrels of Petroleum Initially in Place (PIIP).
1.6 billion barrels of this forecast has already been validated by a leading third
Party oil and gas engineering firm using conservative NI 51-101 criteria…
The Manning projects comprise the following:
First Project: Elkton Erosional Edge
- 1,050 million barrels PIIP (third-party estimate).
- Primary recovery of oil in the Elkton Erosional Edge with 8% to 14% recovery rate with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects.
- To be followed up with infill drilling and then subsequent pressure maintenance with an additional 8+% recovery rate for an estimated cumulative 200 million barrels.
- Recoverable peak production exceeding 30,000 bbl/d.
Enhanced oil recovery (EOR) exploitation targeting an additional 10% to 20% recovery rate with proven EOR technologies.
Second Project: Debolt Erosional Edge
- Debolt erosional edge development with 400 million barrels PIIP (internal estimate).
Third Project: Bluesky Oilsands Channel
- Multiple 5,000 bbl/d to 10,000 bbl/d Bluesky Primary Recovery and Thermal Project(s). Internal estimate of 800 mm barrels PIIP
- Development schemes similar to the Baytex, PennWest, Shell, Husky and Murphy of the Seal and Carmon Creek areas of the Peace River block.
Fourth Project: Down dip Elkton and Debolt
a. Down dip from erosional edge Elkton and Debolt targets.
Potential additional 1+ billion barrels PIIP (internal estimate).
The main focus of the Plan of Development is the primary recovery of approximately 200 million recoverable barrels of 13-15 API heavy oil in the Elkton Member. The various models enclosed in the POD evaluate several capital inputs, which in all cases show positive cash flow, repayment of debt and ability to pay dividends. These models are extrapolated for 25 years, whereas third party engineering reports and internal analysis suggest an economic reserve life of over 35+ years.
The Debolt Erosional Edge, the Bluesky/Gething and the down dip Elkton and Debolt targets are discussed in the POD but not included in the economic models. As additional information is obtained, it will be added to the overall Manning Projects. Details of these projects are discussed in the Operations section of this report. Our company has, in a very short time with minimum capital expenditures, taken a major step down the road to achieving its ultimate goal and we look forward to continued progress in building significant asset value for our shareholders.
-CEC North Star- Annual Report 2013
The Company will file CEC North Star’s 2013 Annual Report in an 8K for full shareholder disclosure. The Annual Report can be found by clicking the following link below:
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.