Apex Resources Reports Progress on the Mackenzie Valley Pipeline Hearings and Shell Oil to Plan to Drill 18 Wells in the Beaufort Sea in the Area Where Apex Resources Group Inc. Owns 3.745% Working Interest.
Tuesday February 20, 6:30 am ET
SALT LAKE CITY, Feb. 20 /PRNewswire-FirstCall/ -- Apex Resources Group Inc. (OTC Bulletin Board: APXR - News) reports progress on the Mackenzie Valley pipeline hearings and Shell Oil to plan to drill 18 wells in the Beaufort Sea in the area where Apex Resources Group Inc. owns 3.745% working interest.
Shell Offshore Inc. plans to drill 18 wells over the next two to five years in the Beaufort Sea and has filed plans with the U.S. Minerals Management Service. The wells to be drilled are located in the Camden Bay area.
One Beaufort prospect called Sivulliq contains a known oil pool, estimated to contain 100 million to 200 million barrels of technically recoverable oil, which was formerly known as the Hammerhead, and drilled by Unocal in 1986 & 1987. However, the oil pool has not been fully delineated.
Rick Fox, Shell's asset manager for Alaska, said Shell plans to initially evaluate the Sivulliq prospect by drilling three wells this summer with the Kulluk, a floating drilling platform Shell purchased last year and the drill- ship Frontier Discoverer will drill several wells.
The Kulluk, a floating drilling platform in McKinley Bay, is being refurbished, while the drill-ship Discoverer is coming from Singapore and is being equipped for Arctic drilling. Both drilling vessels the Kulluk and the Discoverer will move to the Beaufort Sea in time for the drilling season by August 2007.
At the same time, during the summer open-water-season, while the ice is gone, Shell also hopes to acquire seismic data for its Beaufort Sea leases. With the Mackenzie Pipeline progress and Shell's commitment to drill 18 wells in the Beaufort Sea area, the value to the 3.745% working interest Apex purchased in 1997, in the Itiyok 1-27 Well in the Beaufort Sea in Canada, becomes more valuable.
The partners in the Itiyok 1-27 Well are as follows:
IMPERIAL OIL RESOURCES VENTURES 58.67312%
DEVON ARL CORPORATION 14.72%
PETRO - CANADA 14.20%
APEX RESOURCES GROUP INC. 3.745%
CONNOCOPHILLIPS CANADA RESOURCES CORP. 3.003%
CANALANDS RESOURCES 2.255734%
CANADIAN NATURAL RESOURCES LIMITED 1.23445%
CANADIAN FOREST OIL LTD. 1.084348%
677862 ALBERTA LTD 1.084348%
The Itiyok 1-27 Well was originally drilled in 1983, at a total cost of CAD$85 million. A review of Well data and geological prognosis indicates that a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and proven recoverable oil reserves of 8,976 MSTB, with Apex Resources Group Inc. 3.745 % working interest net reserves of 4.04 Bscf and 336 MSTB.
Seismic data indicates a structure closure of approximately 40 square KM with a gross potential reserve of 1.16 TCF and 160 MMSTB (Apex 3.745 % working interest net -- 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprised of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil Apex 3.745 % working interest net -- 23.4 Bscf of gas and 3.2 MMSTB of oil). Values of proven, probable and possible gas and oil reserves, of Apex 3.745 % working interests, as per Citadel Engineering report, have been published in previous news releases.
At current oil & gas market prices, the Apex 3.745% working interest in the Itiyok 1-27 well in the Beaufort Sea is valued as follows:
ITIYOK 1-27 -- OIL US$60.00/B & NG US$7.34/ft3
PART 1: PROVEN GAS & OIL RESERVES : (640 ACRE AREA)
TOTAL:
A) 108 Bscf -- Gas
B) 8.976 MM STB -- Oil
Apex Working Interest -- (3.745%):
A) 4.04 Bscf -- Gas @ US$7.34/ft3 = US$29.6536 Million (Gas)
B) 336,000 STB -- Oil @ US$60.00/B = US$20.16 Million (Oil)
US$49.8136 Million (Gas & Oil)
PART 2: PROBABLE GAS & OIL RESERVES: (40KM2)
TOTAL:
A) 1.16 TCF -- Gas
B) 160 MM STB -- Oil
Apex Working Interest -- (3.745%):
A) 34 Bscf -- Gas @ US$7.34/ft3 = US$249.56 Million (Gas)
B) 4.7 MM STB -- Oil @ US$60.00/B = US$282.0 Million (Oil)
US$531.56 Million (Gas & Oil)
PART 3: POSSIBLE GAS & OIL RESERVES: (21.54KM2)
TOTAL:
A) 625 Bscf -- Gas
B) 86 MM STB -- Oil
Apex Working Interest -- (3.745%):
A) 23.4 Bscf -- Gas @ US$7.34/ft3 = US$171.756 Million (Gas)
B) 3.2 MM STB -- Oil @ US$60.00/B = US$192.0 Million (Oil)
US$363.756 Million (Gas & Oil)
TOTAL OF ALL 3 GAS & OIL:
US $945.1296 Million
The recent progress of the Mackenzie Valley Gas pipeline together with the North American need for new gas supplies continuing to increase adds significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.
While Apex Resources maintains its core Oil & Gas business activities, under the guidance of our newly appointed Investor and Public Relations firm Eric David & Sons, Inc, in New York, Apex will be developing a Business Development Plan, focused on investments outside its Oil & Gas Business. "This is giving us a magnificent opportunity to grow our business exponentially through acquisitions and investments in various markets" stated Mr. John Hickey director of Apex Resources
By the Board of Directors,
Apex Resources Group Inc.
The foregoing contains forward-looking statements. For this purpose any statements contained in this document that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, such words a "may", "will", "believes", "anticipates", "estimates", "continue", or comparable terminology intends to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties and actual results may differ materially depending upon a variety of factors, including, but not limited to, the successful negotiation and execution of the definitive acquisition agreement and receipt of certain exhibits and schedules requested by Apex Resources Group, Inc.
Rascal@GoldUp.com |
