APEX Reports Update on Beaufort Sea Well and Mackenzie Valley Pipeline
PR Newswire - December 05, 2005 06:00
SALT LAKE CITY, Dec 05, 2005 /PRNewswire-FirstCall via COMTEX/ -- Apex Resources Group Inc. (OTC Bulletin Board: APXR), today reports revised value estimates for Beaufort Sea Well.
Apex Resources Group in June 1997, 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$58.70 per barrel and gas close to US$13.00 per thousand cubic feet, Apex interest in proven reserves would be $72.243 Million US Dollars and with an additional potential to be drilled out would represent $1.282 Billion US Dollars.
This will be a tremendous asset to Apex when the Mackenzie Valley Pipeline is completed.
The following proven, probable and possible gas and oil reserves are taken from an Engineering report update on October 25, 2005 by Citadel Engineering.
Itiyok I-27
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$13.00/ft3 = US$52.52 Million (Gas)
B) 336,000 STB - Oil @US$58.68/B = US$19.723 Million (Oil)
--- US$72.243 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$13.00/ ft3 = US$442.000 Million (Gas)
B) 4.7 MM STB - Oil @ US58.70/B = US$275.890 Million (Oil)
--- US$717.890 Million (Gas & Oil)
Part 3 - Possible Gas & Oil Reserves: (21.54 KM2)
Total: - A) 625 Bscf - Gas
B) 86 MM STB - Oil
Apex Working Interest - (3.745%)
A) 23.4 Bscf - Gas @US$13.00/ft3 = US$304.200 Million (Gas)
B) 3.2 MM STB - Oil @US58.70/B =US$187.840 Million (Oil)
--- US$492.040 Million(Gas & Oil)
Total of All 3 US $1.282 Billion Gas & Oil
Mackenzie Valley Pipeline Public Hearings to Proceed
In a letter to the National Energy Board, on November 23, Imperial Oil said sufficient progress has been made in a number of key areas to proceed to the formal hearings, which could start in mid-January.
Imperial Senior Vice President Randy Broiles said the progress has been achieved in clarifying the regulatory process, negotiating benefits and land access agreements with aboriginal regions.
A Nov. 18 letter from Deputy Prime Minister Anne McLellan to Imperial provides sufficient confidence that outstanding matters will be addressed.
That letter presented options for fiscal concessions and a possible commercial role for the Canadian government.
It is hoped that recently negotiated benefits and access agreement terms with aboriginal groups will be fully ratified and executed in December.
Reports out of the Northwest Territories suggest the Inuvialuit, Sahtu and Gwich'in are close to signing deals, but the Deh Cho remain a steadfast holdout.
Deh Cho Grand Chief Herb Norwegian has told reporters his region insists on being treated like a government -- and want the right to collect property taxes from the pipeline.
Moving into the hearing phase is not a final decision to proceed with construction.
Imperial Oil and the consortium partners are working on obtaining the necessary approvals and permits, negotiating final benefits and access agreement and fiscal terms.
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
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.
SOURCE Apex Resources Group Inc.
John M. Hickey, Director of Apex Resources Group Inc., +1-801-363-2599
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