Octagon 88 Resources Inc (OCTX) and CEC North Star Energy Ltd are pleased to announce the coring rig has reached location and spudded the second licensed well targeting the Elkton/Debolt - Erosional Edge. The well reached a total depth of 480 meters and coring operations will begin immediately.
The company intends on having these cores tested in AGAT laboratories to confirm the properties of this dolomitic highly oil saturated limestone deposited in a carbonate environment. From the extensive well control information (including positive reviewed cores studies in the area) the geological study established thickness ranging from 6 to 20 meters with porosity values up to 28%, whereas the industry minimum porosity required for production is 8%.
The project has the opportunity for primary production without stimulation or EOR (enhanced oil recovery), as the oil in the erosional edge is expected to be of a lighter API (density) than the main thicker Elkton & Debolt zones. The well is being drilled to bring on the second project in parallel with the Bluesky/Gething project, the first well successful in its coring operations awaiting AGAT laboratory results.The first well in the Elkton & Debolt project targets the sweet spot that was established through geological studies. Based on other similar industry experience in the Grosmont area the company is projecting through several stages to ultimately bring on multiple 5,000 to 10,000 barrel a day scalable projects. Production from the Erosional Edge projects recently came to the forefront with the success of Laricina and Osum announcing commercial operations; a joint venture on the erosional edge of the Grosmount Carbonates using new technologies. As Shell, Husky, Laracina, Osum, Athabasca Oil and Sunshine Oil are all currently advancing their Carbonate projects. Octagon 88 Resources In 2012 / 2013 Octagon 88 Resources, Inc. acquired substantial light and conventional heavy oil assets in Northern Alberta. The acquired projects have been substantially de-risked which leads the company to emerge as a development stage oil and gas company as of January 22, 2013. The company’s intention is to grow shareholder value through mergers and acquisitions opportunities available to the company. The current program schedule entails working with the operator of these properties to bring on production and cash flow through the company’s direct working interests, and indirect investments spread throughout the projects.