Octagon 88 Announces a New Plan of Development Advanced with 3rd Party Confirmation of 1.6 Billion Barrels of Petroleum in Peace River
Peace River is one of the largest Oilsand locations in Alberta. Recently, a leading third party oil and gas engineering company has confirmed using the conservative NI 51-101 criteria that there is a potential 1.6 billion barrels of petroleum initially in place (PIIP).
(PRWEB) September 24, 2013
Peace River is one of the largest Oilsand locations in Alberta. Recently, a leading third party oil and gas engineering company has confirmed using the conservative NI 51-101 criteria that there is a potential 1.6 billion barrels of petroleum initially in place (PIIP). With projects starting all over the Alberta Oilsands, including in Bluesky and Gething, this estimate exceeds previously thought estimates and will help determine and shape the size and scope of future projects in the area.
Octagon 88 resources, Inc., is the largest publically traded shareholder of CEC North Star, with a 33% stake of all of its shares. With their involvement with CEC North Star they have acquired a great quantity of light and conventional heavy oil assets in the Peace River area of Alberta. CEC North Star has been de-risked which has assisted the company to emerge into a development stage oil and gas company. Current plan of development (POD) is comprised of developing properties to begin production of oil recovery while maintaining positive revenue.
Initially there are four projects planned by Octagon 88 in the Peace River block of the Alberta Oilsands. They are the Elkton Erosional Edge, the Debolt Erosional Edge, the Bluesky Oilsands Channel, and the Down drip Elkton and Debolt projects.
The Elkton Erosional Edge project looks to recover an estimated 1,050 million barrels PIIP. The primary recovery of the oil in Elkton Erosional Edge will target and maintain a recovery rate of 8% to 14% with staged and scalable 5,000 bbl/d to 10,000 bbl/d projects. After the initial project, follow up projects will include infill drilling and then pressure maintenance with a target of 8+% recovery rate for an estimated total of 200 million barrels. Peak production is predicted to exceed 30,000 bbl/d, with enhanced oil recovery targeting an additional 10% to 20% recovery rates.
The Debolt Erosional Edge development is predicted to yield 400 million barrels of PIIP according to internal estimates. The Bluesky Oilsands Channel has an internal estimate within Octagon 88 to contain 800 million barrels PIIP with a target recovery of multiple 5,000 to 10,000 primary recovery and thermal projects. The develop scheme for the Bluesky Oilsands mirrors that of Baytex, PennWest, Shell, Husky and Murphy of the Seal and Carmon Creek areas of the Peace River block. The Down Drip Elkton and Debolt project targets the down drip from both the Elkton and Debolt Erosional edges. The potential recovery for this POD exceeds potential 1 billion barrels, according to internal estimates. The main focus of the POD is the primary recovery of 200 million barrels of 13-15 API heavy oil in the Elkton Member.
Octagon 88 will file CEC North Star’s 2013 Annual Report in an 8k for full shareholder disclosures.
For the original version on PRWeb visit: http://www.prweb.com/releases/2013/9/prweb11158123.htm