Apex Resources Reports on Updated Engineering Report for Beaufort Sea Well
11/10/2005 4:31:15 PM
SALT LAKE CITY, Nov 10, 2005 (PRIMEZONE via COMTEX) -- Apex Resources Group Inc. (APXR), today reports on updated Engineering Report on the Itiyok I-27 Well in the Beaufort Sea.
On October 25, 2005 Citadel Engineering of Calgary released the report to reflect the current gas and oil prices.
In June 1997, Apex Resources Group purchased a 3.745% working interest in the Beaufort Sea Area known as the Itiyok 1-27 Well, which was drilled in 1983. A review of the 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 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 (working interest net - 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprise of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil (working interest 23.4 Bscf of gas and 3.2 MMSTB of oil).
With oil at approximately US$60.00 per barrel and gas close to US$12.00 per cubic feet, Apex interest in proven reserves would be US$68.640 million and with an additional potential to be drilled out would represent US$1.231 billion.
This will be a tremendous asset to Apex if and when the Mackenzie Valley Pipeline is completed.
The following proven, probable and possible gas and oil reserves are taken from the Engineering report.
Without a decision on the pipeline Apex 3.745% of the Itiyok I-27 Well is reduced at US$2,895,000 for proven reserves. After a decision to move forward with the pipeline this value will increase significantly.
Itiyok I-27
Part 1 - Proven Gas & Oil Reserves: (640 acre area)
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Total: - A) 108 Bscf - Gas
B) 8.976 MM STB - Oil
Apex Working Interest - (3.745%)
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A) 4.04 Bscf - Gas @ US$12.00/ft3 = US$48.480 Million (Gas)
B) 336,000 STB - Oil @ US$60.00/B = US$20.160 Million (Oil)
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US$68.640 Million (Gas & Oil)
Part 2 - Probable Gas & Oil Reserves: (40 square KM)
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Total: - A) 1.16 TCF - Gas
B) 160 MM STB - Oil
Apex Working Interest - (3.745%)
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A) 34 Bscf-Gas @ US$12.00/cubic ft = US$408.000 Million (Gas)
B) 4.7 MM STB - Oil @ US60.00/B = US$282.000 Million (Oil)
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US$690.000 Million (Gas & Oil)
Part 3 - Possible Gas & Oil Reserves: (21.54 square KM)
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Total: - A) 625 Bscf - Gas
B) 86 MM STB - Oil
Apex Working Interest - (3.745%)
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A) 23.4 Bscf-Gas @ US$12.00/cubic ft = US$280.800 Million (Gas)
B) 3.2 MM STB - Oil @ US60.00/B = US$192.000 Million (Oil)
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US$472.800 Million(Gas & Oil)
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Total of All 3 US$1.231 Billion Gas & Oil
About The Mackenzie Valley Pipeline
In a speech to the Canadian American Business Council in Calgary the President Mr. Rex Tillerson of Exxon Mobil stated he still expects the stalled Mackenzie gas pipeline to become a reality. "My expectation is the Mackenzie pipeline will go forward. I think there's been good progress made in dealing with a number of longstanding issues regarding aboriginal claims and benefits and compensation that they expect."
Mr. Rex Tillerson goes on to say, "I think it's a long process and there's a lot of interests that need to be addressed but we continue to make good progress and my expectation is we will ultimately get across the finish line with this thing," he said.
Exxon Mobil, the world's largest publicly-traded energy company, has a key stake in the Mackenzie project through its majority ownership of Calgary-based Imperial Oil.
Imperial is the lead on the Mackenzie project along with partners Shell Canada, ConocoPhillips, Exxon Mobil and the native-owned Aboriginal Pipeline Group.
The $7-billion pipeline would carry natural gas from three discovered fields in the Mackenzie Delta across the Northwest Territories to join the existing gas pipeline system in northwestern Alberta.
The members of the consortium are expected to give an update to regulators about future plans for the pipeline later this month. Mr. Tillerson praised a decision by the Canadian government to provide $500 million over the next 10 years to deal with the socio-economic impact of the proposed pipeline project.
The next 25 years will be a critical time for the oil and gas sector, said Tillerson, who estimated energy demand will grow by 50 percent during that time. Eighty percent of that growth will come from developing nations, he said.
Other Business
The Company has been served with a Notice of Claim in Small Claims Court of British Columbia by WTRG Corp. The claim was served on October 12, 2005 by Rene Pidgeon, a representative of WTRG Corp. The claim states a Breach of an Agreement over payments.
The Agreement was for 100,000 Apex shares and $1000.00 per month for Investor Relations service. On June 15, 2005 the Company issued 100,000 restricted shares to WTRG Corp. as per the agreement. On October 31, 2005, the company had the restriction removed and delivered 100,000 free trading shares to WTRG Corp. on November 1, 2005. The receipt was signed by Maureen Bortnak, a representative of WTRG Corp.
Further, the Company owed $3000.00 for services rendered. The Company never denied owing the money.
On October 25, 2005 the Company issued a Bank Draft to WTRG in the amount of $3000.00. The receipt was signed by Maureen Bortnak representing WTRG.
In the opinion of the Company, all stock and monies have been paid as per the Agreement of June 1, 2005. Although the Company never received proof of the services performed by WTRG Corp., Mr. Alex Pidgeon is demanding a minimum of US$0.12 per share based on the share price during the summer of 2005. The current share price is $0.06 per share. On October 11, 2005 with the share price at US$0.12, WTRG Corp. issued a news release announcing the Claim that was posted on the Apex Resources Group Inc. website. This had a negative impact on Apex and could have contributed to the steady decline in the Company share price in the past 21 trading days.
Further, WTRG Corp. represented by Alex Pidgeon, Rene Pidgeon, Maureen Bortnak, and Jaime Sanders has refused to drop the Claim and Mr. Alex Pidgeon is continuing to make threats to Apex Resources Group Inc. and its representative Mr. John M. Hickey. This has left Apex with no other option but to pursue with a counter Claim for damages and possible extortion.
Apex management would like to thank all shareholders for their continuing support and will endeavour to build the Company back to strength in spite of this setback.
By the Board of Directors,
APEX RESOURCES GROUP INC.
Investor Relations: Roger Reynolds
136 East South Temple, Suite 1600
Salt Lake City, Utah 84111 USA
TEL: 801.363.2599
Web Site: www.ApexResourcesGroup.com
John M. Hickey
Director
This news release was distributed by PrimeZone, www.primezone.com
SOURCE: Apex Resources Group Inc.
Apex Resources Group Inc.
(801) 363-2599
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