ZUG, Switzerland--(BUSINESS WIRE)--Octagon 88 Resources Inc. (OCTX), wishes to advise that it will not meet the filing deadline for the filing of its Form 10-K annual report due to a situation whereby the audited report for CEC North Star Energy Ltd.(“North Star”) will not be concluded in sufficient time to allow for the finalization of the Company’s audit, which requires the inclusion of audited financial information of CEC North Star.
The Company’s auditors have advised that due to the fact that the audit of CEC North Star is a very large audit, they may not be able to provide audit sign off of the North Star audit in a timely enough fashion to meet the filing deadline. The auditors have a number of staff working to complete the audit confirmations required as a part of the audit process of North Star which entails the review and analysis of a number of third party reports as well as management supporting data that has been provided.
Based on communications with the Company’s auditors, the Company expects to file its audited annual report on Form 10-K this week. The delayed filing of the Form 10-K may result in an “E” being added to our trading symbol until such time as Octagon 88 completes its filings and are in compliance.
Octagon 88’s management states the posting of the “E” as not impacting the Company’s ongoing drilling operations or the ability to continue to disseminate news relating to the activities of the Company. Should an “E” be appended to the trading symbol, Octagon 88 Resources ensures that it will take all steps to finalize this issue as soon as the Company files it audited financials on Form 10-K, again anticipated to be soon this week.
As North Star is currently drilling its first production well on the project, we will continue to release drilling result information as it becomes available and to post information on the Octagon 88 Company website.
The Company is pleased to advise that the operator has confirmed the directional drilling for the horizontal production leg of the current drill program began today. The objective is to drill a 700-meter well through the targeted area of the Elkton erosional edge formation.
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.