Octagon 88 Resources Inc. (OCTX) is pleased to provide the following first analysis of the cores successfully taken from Elkton Erosional edge well. The porosity throughout the full 20 meters of pay zone has shown to be 30 percent rather than the earlier announced 18 percent. This dynamically increases the amount oil contained in the sands. Additionally the cores are fluoresced orange throughout the complete pay zone indicating again to be lighter heavy oil to produce with primary production methods.
These cores are being 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 studied in the area) the geological study was able to establish the sweet spot. The well site finding has established 20meters of oilsands pay zone with the well logs now indicating porosity values up to 30%, whereas the industry minimum porosity required for production is 8%. The consistency of the sands through the pay zone were 100 percent complete with no water present which when confirmed at AGAT labs, the company would have a second primary production project in parallel to the prior announced successful Blue Sky Gething project. The first 2 projects combined will target scaled development possibilities of 50,000 barrels a day of conventional heavy oil production beginning this year.
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 first well in the Elkton project targeted 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. Also Shell, Husky, Laracina, Osum, Athabasca Oil and Sunshine Oil are all currently advancing their Carbonate projects.