Apex Reports on News of Devon Energy Relaunching Exploration in Beaufort Sea; Devon Obtains Environmental Approvals to Drill a U.S. $60 Million Well - the First Regulatory Approval Since 1989
SALT LAKE CITY, Apr 28, 2005 (BUSINESS WIRE) -- Apex Resources Group Inc. (OTC BB: APXR), today reported on news that Devon Energy relaunching its exploration in the Beaufort Sea, marking a new era for Canada's oil and gas industry. Devon received key environmental approvals last month to drill a U.S. $60 million well. (Source: National Post). This represented the first regulatory approval in the Beaufort Sea area since 1989.
Devon hopes to find a gas field large enough to support a commercial project. Others oil and gas giants are preparing to relaunch offshore activity, as plans for a new Mackenzie Valley pipeline get closer.
According to National Energy Board estimates, the Beaufort Sea has greater potential for gas discoveries than the MacKenzie Delta, or 52 trillion cubic feet off-shore compared with 13 trillion cubic feet onshore. The National Energy Board indicated that 267 wells have been drilled in the region, both offshore and onshore.
"This long-awaited regulatory approval and Devon's activity in very close proximity to Apex Resources' investment are moving the industry and the Company to the next level as Arctic exploration becomes Arctic drilling," stated John M. Hickey, Director.
About Devon
Devon Energy became the largest exploratory landholder in the MacKenzie Delta-Beaufort Sea with its U.S. $3.4 billion acquisition in 2001 of Anderson Exploration Ltd. Anderson acquired the lands, about 20 kilometers from Tuktoyaktuk, in 2000. Devon is one of the partners with Apex Resources Group in the Beaufort Sea area known as the Itiyok 1-27 Well.
About Apex
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).
Name/SDL Grid Section
Area (Degrees-Min) Rights Hectares Ownership Percentage%
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Imperial Oil
Resources
Itiyok I-27/SDL-055 2072 Ventures Ltd. 58.673120
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Devon ARL
70-00 N 7,8,17,18, Corporation 14.720000
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134-00 W 27,28,37 Petro-Canada 14.200000
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Apex Resources
All P&NG Group Inc. 3.745000
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Conocophillips
Canada
Resources Cor. 3.003000
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Canalands
Resources 2.255734
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Canadian
Natural
Resources Ltd. 1.234450
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Canadian Forest
Oil Ltd. 1.084348
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677862 Alberta
Ltd. 1.084348
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Total 100.0
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With oil at approximately US$50.00 per barrel and gas close to US$7.00 per cubic feet, Apex' interest in proven probable and possible gas and oil reserves is powerful.
Itiyok 1-27
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$7.25/ft(3) = US $29.29 Million (Gas)
B) 336,000 STB - Oil @US$55.00/B = US$18.480 Million (Oil)
Total = US$47.77 Million (Gas & Oil)
Part 2 - Probable Gas & Oil Reserves: (40KM(2))
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Total:- A)1.16 TCF - Gas
B) 160 MM STB - Oil
Apex Working Interest - (3.745%)
--------------------------------
A) 34 Bscf - Gas @ US$7.25/ ft(3) = US$246.5 Million (Gas)
B) 4.7 MM STB - Oil @ US55.00/B = US$258.5 Million (Oil)
Total = US$505. Million (Gas & Oil)
Part 3 - Possible Gas & Oil Reserves: (21.54 KM(2))
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Total:- A) 625 Bscf - Gas
B) 86 MM STB - Oil
Apex Working Interest - (3.745%)
--------------------------------
A) 23.4 Bscf - Gas @US$7.25/ft(3) = US$169.65 Million (Gas)
B) 3.2 MM STB - Oil @US55.00/B = US$176. Million (Oil)
Total = US$345.65 Million(Gas & Oil)
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Total of US $898.42 Million (Gas & Oil)
"The energy boom is just beginning as President George W. Bush is to ask Congress to pass The Energy Bill by August of this year" Hickey concluded.
By the Board of Directors,
APEX RESOURCES GROUP INC.
Investor Relations: Cynthia DeMonte/DeMonte Associates
575 Madison Avenue - Suite 1006
New York, New York 10022
Tel: 212-605-0525
email: cdemonte@aol.com
www.demonte.com
www.ApexResourcesGroup.com
John M. Hickey
Director
SOURCE: Apex Resources Group Inc.
CONTACT: DeMonte Associates
Cynthia DeMonte, 212-605-0525
cdemonte@aol.com
www.demonte.com
www.ApexResourcesGroup.com
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