SISM Research, Valuation Update On Octagon 88 Resources, Inc. – The First Coring Operation Targeting The Bottom Of The Bluesky/Gething Oilsands Formation Was A Success – Opportunity Exists For Primary Production By Year-End
Ernest C. Schlotter, a senior analyst with Zurich, Switzerland-based
SISM Research and a four star analyst according to Reuter’s StarMine,
released his valuation updates on Octagon 88 Resource, Inc.
Ernest C. Schlotter, a senior analyst with Zurich, Switzerland-based SISM Research and a four star analyst according to Reuter’s StarMine, released his valuation updates on Octagon 88 Resource, Inc. (OCTX). Company UpdateOctagon’s first coring program targeting the Bluesky/Gething Formation was successfully completed.The cores have been taken to AGAT laboratories for analysis. The cores showed eight meters of excellent quality cap rock necessary for enhanced recovery methods, followed by thirty meters of various types of oil bearing pay zones with primary production opportunities. This is major milestone, as it lowers production costs significantly compared to enhanced recovery technologies like SAGD or CSS methods and expedite the timeline to go into production. Based on 2D seismic interpretation at the core location, the Bluesky/Gething is expected to be between 500 to 800 meters in width. A 3D seismic program will be implemented this summer to give further information about the pay zone and provide multiple horizontal drilling locations targeting production in late 2013. With an estimated thirty meters of oil bearing pay over the project area, the Company estimates to start a 1,200 barrel a day scalable production facilityscaling up to ultimately a 20,000 barrels a day production plant on the Bluesky/Gething development.-SISM Update Report - March 18, 2013SISM Summary ValuationBased on very encouraging primary coring information SISM Research assigned a value of $1.00/bbl for Octagon’s Prospective Resources as the Company is moving on to further develop the project with its goal to start production in late 2013. The project is now in its advanced development stage with the elimination of the regulatory process due to the primary production opportunity the company possess. When AGAT laboratories validate the well site findings, it would be reasonable based on industry comparable transactions to upgrade the Bluesky/Gething project valuations to $384 million or $14.62 per share.-Ernst Schlotter, SISM Research The full report can be found by clicking below; the report includes important analyst information and disclosures: