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 Update Octagon’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 facility scaling up to ultimately a 20,000 barrels a day production plant on the Bluesky/Gething development. -SISM Update Report - March 18, 2013 SISM Summary Valuation Based 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:
Forward-looking Statements:This press release contains forward-looking statements concerning future events and the Company's growth and business strategy. Words such as "expects," "will," "intends," "plans," "believes," "anticipates," "hopes," "estimates," and variations on such words and similar expressions are intended to identify forward-looking statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Forward looking statements in this press release include statements about our drilling development program. These statements involve known and unknown risks and are based upon a number of assumptions and estimates that are inherently subject to significant uncertainties and contingencies, many of which are beyond the control of the Company. Actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, the timing and results of our 2012 drilling and development plan. Additional factors include increased expenses or unanticipated difficulties in drilling wells, actual production being less than our development tests, changes in the Company's business; competitive factors in the market(s) in which the Company operates; risks associated with oil and gas operations in the United States; and other factors listed from time to time in the Company's filings with the Securities and Exchange Commission including the Company's Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2012. The Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based. Cautionary Note to U.S. Investors -- The United States Securities and Exchange Commission permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this press release, such as "probable," "possible," "recoverable" or "potential" reserves among others, that the SEC's guidelines strictly prohibit us from including in filings with the SEC. Investors are urged to consider closely the disclosure in our filings with the SEC.
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