octagon 88 resources inc (OCTX) Snapshot

On 05/16/2013, Octagon 88 Resources, Inc. announced that they will be unable to file their next 10-Q by the deadline required by the SEC.

Octagon 88 Resources Inc. has now received the AGAT laboratories final analysis report from CEC North Star Energy Ltd. providing analysis data from the core samples taken from the Elkton Erosional Edge coring operations carried out in March 2013. The full report on the Elkton Erosional Edge includes previously released information and final results. The final results are based on a drilling depth of 450-465 meters, proving a Net Pay of approximately 16 meters. As for the porosity calculated, the tested core samples ranged from 21% to 30%. The permeability of the Elkton core samples range from 0.001 - 0.34 darcies while the Oil Saturation ranges from 76% to 88% with Oil Gravity resulting in 13.1 to 14.5 (API) at reservoir conditions. The Elkton AGAT report exceeds the previous findings from the CEC North Star technical team that this Elkton Erosional Edge project has oil and rock properties, which are likely to be developed for primary production followed later by Enhanced Oil Recovery Methods (EOR). With improved forecasts the Elkton Erosional edge project has been upgraded to the first development project. The recovery rates possible from primary production and more simplified enhanced recovery methods, with the larger volumes and mobility of the oil than was expected to has been demonstrated in these AGAT results. These actual numbers are being further validated by Schlumberger byway of dynamic laboratory simulations which will set a complete plan for full commercial development, beginning with licensing two to four initial production testing wells prior, for the 4th quarter 2013. The Bluesky Gething Project 3D seismic project remains on schedule to be concluded in 3 to 4 weeks.

Octagon 88 Resources, Inc. has now received the AGAT laboratories final analysis report from CEC North Star Energy Ltd. providing analysis data from the core samples taken from the Bluesky Gething coring operations carried out in March 2013. The full report includes the information previously released and final results - consisting of Depth 440-470 (m), Gross Pay approximately 20 (m). Calculated porosity range from 24% to 32%, Permeability range of the samples of 0.5 to 2.8 darcies with the median about 1.2 darcies, Oil Saturation range from 60 to 80%, Oil Gravity 10.73 (API) at reservoir conditions in the lower zone. No API was obtained from the upper zones. The full AGAT report will be filed as an 8k in the company's filings. This report matches the prior advice from the CEC North Star technical team that this Bluesky/Gething project has oil and rock properties which are likely to be developed with primary production followed later by Enhanced Oil Recovery Methods ("EOR") and then possibly a thermal project. This has confirmed the company has comparable oil and rock properties to the other major producers in the Peace River Area of north western Alberta. A 3D seismic program has been commissioned for July with the intent to more fully map the Bluesky channel and provide drill locations for subsequent development work. This type of oil sands project with the oil and rock properties reported in the third party lab report is typically developed with vertical wells with multiple horizontal laterals followed by EOR. Baytex, Murphy, Pennwest and others are using this development model successfully with some reporting current daily production in excess of 20,000 barrels a day. The company will license primary production test wells for drilling in the 4(th) quarter of 2013. The AGAT lab results and core samples are now being used to establish optimum production methods by simulation studies providing then recovery rates. These results are expected late May, 2013 with licensing of the drill locations beginning after the 3 D seismic program is completed in July. The company is very pleased with the Blue Sky project now being officially confirmed by third parties. The Elkton Erosional Edge results are expected near term and The company expects similar confirmation of the second project resulting from that successful coring program.