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 which is targeting the Elkton Debolt where from the 25 wells drilled regionally it is a well mapped and an already known major resource. The company’s first well in this zone will target the sweet spot on the erosional edge of the Elkton Carbonates which recently came to the forefront with the success of Laricina and Osum announcing commercial operations from a Joint Venture on the erosional edge of the Grosmount Carbonates using newer technologies. Laricina, Osum, Athabasca Oil, Sunshine Oil and two majors, Shell and Husky are also advancing their Grosmount Carbonate projects. This will be the first in the Peace River area and combined with our Blue Sky Gething conventional heavy project the company has been positioned to grow using cash flow to develop the larger carbonates and thus reducing the need to go to the capital markets for heavy dilutive share issuance to reach production.