Octagon 88 Resources Inc., (OCTX) received confirmation from CEC North Star Ltd that 1.6 billion barrels PIIP (Petroleum Initially In Place) in the Manning Oil Play has been identified and validated by a leading third party oil engineering firm using NI 51-101 criteria.
Online PR News – 11-September-2013 – Zug, Switzerland – A plan of development (POD) has been compiled that proposes a combined phased development of the “Manning Projects” that are located in the Peace River block of northwestern Alberta, Canada. The lands contain a projected 3+ billion barrels of Petroleum Initially in Place (PIIP).
1.6 billion barrels of this forecast has already been validated by a leading Third
Party Oil and Gas engineering firm using conservative NI 51-101 criteria.
The Manning projects comprise the following:
First Project: Elkton Erosional Edge
- 1,050 million barrels PIIP (third-party estimate).
- 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.
Second Project: Debolt Erosional Edge
- Debolt erosional edge development with 400 million barrels PIIP (internal estimate).
Third Project: Bluesky Oilsands Channel
- Multiple 5,000 bbl/d to 10,000 bbl/d Bluesky Primary Recovery and Thermal Project(s). Internal estimate of 800 mm barrels PIIP
- Development schemes similar to the Baytex, PennWest, Shell, Husky and Murphy of the Seal and Carmon Creek areas of the Peace River block.
Fourth Project: Down dip Elkton and Debolt
- Down dip from erosional edge Elkton and Debolt targets.
Potential additional 1+ billion barrels PIIP (internal estimate).
The main focus of the Plan of Development is the primary recovery of approximately 200 million recoverable barrels of 13-15 API heavy oil in the Elkton Member. The various models enclosed in the POD evaluate several capital inputs, which in all cases show positive cash flow, repayment of debt and ability to pay dividends. These models are extrapolated for 25 years, whereas third party engineering reports and internal analysis suggest an economic reserve life of over 35+ years.
The Debolt Erosional Edge, the Bluesky/Gething and the down dip Elkton and Debolt targets are discussed in the POD but not included in the economic models. As additional information is obtained, it will be added to the overall Manning Projects. Details of these projects are discussed in the Operations section of this report. Our company has, in a very short time with minimum capital expenditures, taken a major step down the road to achieving its ultimate goal and we look forward to continued progress in building significant asset value for our shareholders.
-CEC North Star- Annual Report 2013