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SISM Research, Valuation Update On Octagon 88 Resources, Inc. – The First Coring Operation Targeting

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By Business Wirevia The Motley Fool

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SISM Research, Valuation Update On Octagon 88 Resources, Inc. – The First Coring Operation Targeting the Bottom of the Bluesky/Gething Oilsands Formation Was a Success – Opportunity Exists for Primary Production by Year-End

NEW YORK–(BUSINESS WIRE)– Ernest C. Schlotter, a senior analyst with Zurich, Switzerland-based SISM Research and a four star analyst according to Reuter’s StarMine, released his valuation updates on Octagon 88 Resource, Inc. (OCTX).


Company Update

Octagon’s first coring program targeting the Bluesky/Gething Formation was successfully completed. The cores have been taken to AGAT laboratories for analysis. The cores showed eight meters of excellent quality cap rock necessary for enhanced recovery methods, followed by thirty meters of various types of oil bearing pay zones with primary production opportunities. This is major milestone, as it lowers production costs significantly compared to enhanced recovery technologies like SAGD or CSS methods and expedite the timeline to go into production. Based on 2D seismic interpretation at the core location, the Bluesky/Gething is expected to be between 500 to 800 meters in width. A 3D seismic program will be implemented this summer to give further information about the pay zone and provide multiple horizontal drilling locations targeting production in late 2013. With an estimated thirty meters of oil bearing pay over the project area, the Company estimates to start a 1,200 barrel a day scalable production facility scaling up to ultimately a 20,000 barrels a day production plant on the Bluesky/Gething development.

-SISM Update Report – March 18, 2013


SISM Summary Valuation

Based on very encouraging primary coring information SISM Research assigned a value of $1.00/bbl for Octagon’s Prospective Resources as the Company is moving on to further develop the project with its goal to start production in late 2013. The project is now in its advanced development stage with the elimination of the regulatory process due to the primary production opportunity the company possess. When AGAT laboratories validate the well site findings, it would be reasonable based on …read more
Source: FULL ARTICLE at DailyFinance

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Octagon 88 and JV Partners – Coring Operation Successfully Completed – Coring Rig Moves to Second We

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By Business Wirevia The Motley Fool

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Octagon 88 and JV Partners – Coring Operation Successfully Completed – Coring Rig Moves to Second Well

CALGARY, Alberta–(BUSINESS WIRE)– Octagon 88 Resources Inc. (OCTX) is pleased to announce the coring activity on the first planned well was successfully completed and the cores taken have been transported to AGAT Labs in Calgary for analysis.

“The samples seen from the cores indicate the oil in the company’s sands contain Lighter Heavy Oil with gas traces which should assist with mobilizing the oil to the well bore.” (Photo: Business Wire)

Coring began at about 417 meters and continued to 459 meters, the targeted bottom of the Bluesky/Gething formation. Eight meters of excellent quality cap rock necessary for enhanced recovery methods, was cored followed by 30 meters of various types of oil bearing sands including those which may produce with primary production without the use of SAGD or CSS methods. The primary production is similar to neighboring oil majors and will bring on production much quicker while substantially reducing CAPEX costs of the project.

The samples seen from the cores at location indicate the oil in the company’s sands contain Lighter Heavy Oil with gas traces which should assist with mobilizing the oil to the well bore. The company is awaiting the results of laboratory analysis expected in two to three weeks to confirm the porosity, permeability and viscosity (type of oil). This will be followed by extensive simulation work to establish the best recovery method. Further development plans of the Bluesky/Gething zones will be forth coming.


“From seismic analysis, the channel is expected to be about 500 to 800 meters in width at the core location. With the approximately 30 meters of oil bearing pay zone, the company has made strong progress toward our scalable production plants objective, starting at 1’200 barrels a day and growing the
 Bluesky project to a potential of 20,000 barrels a day production. Further developments are underway moving to 3D seismic which will further map the zone and provide multiple horizontal drilling locations targeting production in late 2013.”

-CEC North Star Technical Team

With the success of this first core well, the rig is demobilized and is moving to the second location …read more
Source: FULL ARTICLE at DailyFinance