ZUG, Switzerland--(BUSINESS WIRE)--Octagon 88 Resources (OCTX) is pleased to announce that the operator has advised it will now proceed with the licensing and drilling of the second Elkton well prior to the end of Q2 2014. The decision to spud the next Elkton well is credited to the operation team’s extensive analysis of the Elkton formation obtained from the production testing of the first horizontal well completed on January 2014.
Management’s decision for EOR exploitation was further proven in a recent test conducted by Perm labs showing Elkton recovery rates enhanced substantially with the application of EOR. The lab results lead the Manning Project’s Operator to recommend proceeding with drilling a vertical well to obtain additional core results that will define which of the EOR methods will be implemented on the horizontal well to follow.
The required application process for licensing the horizontal production wells using EOR technology has begun.
Octagon 88 Resources Inc. is a development stage oil and gas company that has acquired light and conventional heavy oil assets in Northern Alberta.
The current program schedule entails working with the operator of these properties CEC North Star 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-point seven (30.7%) 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 2014 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 June, 2013. 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.