Octagon 88 Resources & Partners Announce The Bluesky/Gething Well Has Been Successfully Spudded
CALGARY, Alberta--(BUSINESS WIRE)-- Octagon 88 Resources Inc (OCTX) and CEC North Star Energy Ltd are pleased to announce the coring rig has reached location and has spudded the first well. This well is the first licensed location of two locations recently receiving governmental approval as previously announced on March 5, 2013. The well is expected to reach the base of the Bluesky/Gething channel at approximately 500 meters from surface, and will take five days to touch down to its scheduled depth.
The first of the 3 wells is located in the Manning area of the Peace River block of north western Alberta, targeting the Bluesky/Gething zone; An area known to be a consistent producer of conventional Heavy Oil by companies like Shell, Murphy, Baytex and Pennwest. The well will be cored to the depth of 500 meters. The Company intends on having the cores tested in laboratories to confirm the properties of the sands, oil and cap rock and to thus establish via the laboratory work. Thereafter extensive simulations are carried out for the best economic recovery rates with the different types of development appropriate to each of the projects.
In 2012 / 2013 Octagon 88 Resources, Inc. has 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. 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 trading shareholder of CEC North Star Ltd. with a 33% ownership.
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-one (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 Companies' 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 Companies 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 above mentioned Companies. 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 Companies business; competitive factors in the market(s) in which the Companies operate; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Companies' filings with the Securities and Exchange Commission including the Company's Annual Reports on Form 10-K for the year and their recent Quarterly Reports on Form 10-Q. Both Companies 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 Companies' expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.
CEC North Star Ltd.
+1 587 353 5550
Octagon 88 Resources Inc.
+41 79 237 6218
Alexander Baldi, (+41)79- 256-9534
KEYWORDS: North America Canada
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