Octagon 88 Resources
(OCTX) is pleased to announce that it has received confirmation from the operator that a total depth of 498m was reached on the Elkton Erosional edge vertical well on October 13, 2013. The well is currently being logged to provide the Company with the most accurate analysis available.
Core sample oozing with oil at surface (Photo: Business Wire)
Core samples have been successfully taken from the Elkton erosional edge well DH 9-4-92-23-W5 and are presently being transported to AGAT laboratories for core sample analysis.
The operator was pleased to report that the core samples extracted from the horizontal target zone was oozing oil from out of the core at surface.
As mentioned in the POD (Plan Of Development), the lower portion of the vertical Elkton well will now be cemented; upon concluding this stage the horizontal leg of the production well will be kicked off at the 160m level.
Geologically Unique - Elkton Erosional Edge:
- 1.05 billion barrels PIIP (third-party validated).
- Primary recovery of oil in the Elkton Erosional Edge with 8% to 14% recovery rate with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects.
- To be followed up with infill drilling and then subsequent pressure maintenance with an additional 8+% recovery rate for an estimated cumulative 200 million barrels.
- Recoverable peak production exceeding 30,000 bbl/d.
- Enhanced Oil Recovery (EOR) exploitation targeting an additional 10% to 20% recovery rate with proven EOR technologies.
The Company has verified through third party analysis that the core samples and well logs from the Elkton Erosional have been proven to be geologically unique as to the presence of unconsolidated oil sands at the edge of the consolidated limestone carbonates holding even larger quantities of oil. Recent economic simulation testing has proven that primary (Cold Flow) production will be the production method used for the Elkton Erosional Edge, this is the Company's game changing aspect, as the operator will now carry on straight to production not needing thermal recovery thus saving exponentially on CAPEX costs and cash flow timelines.