Octagon 88 Resources (OCTX)

[stockmaniac22]

Elkton Well Pad Construction Begins


OCTX is pleased to announce that the Manning Projects Operator (CEC North Star) has confirmed it has received (13.09.13) the final governmental approval required to file for the drilling license of the first production well on the Elkton Erosional Edge. This is two weeks earlier than previously announced, the drilling company and other required oil service providers are scheduling and will provide the anticipated spud date in the next few days. The construction of the Elkton Erosional well pad is currently underway.
The Company has verified through third party analysis that the core samples and well logs from the Elkton Erosional has been proven to be geologically unique as to the presence of unconsolidated oil sands at the edge of the consolidated limestone carbonates holding even larger quantities of oil. Recent economic simulation testing has proven that primary (Cold Flow) production will be the production method used for the Elkton Erosional Edge, this is the Company's game changing aspect as the operator will now carry on straight to production not needing thermal recovery thus saving exponentially on CAPEX costs and cash flow timelines.
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.
The expanded development plan below details how the Company and partners have developed a highly trusted confidence geological model for the area; specifically for the Elkton Erosional Edge from results derived from recent drilled wells, cores and seismic data.

http://finance.yahoo.com/news/octagon-88-resources-receives-final-113000402.html