Apex Resources Announces Increased Value of Its Beaufort Sea Well and Current Status of the Mackenzie Valley Pipeline.



    SALT LAKE CITY, Sept. 20 /CNW/ -- Apex Resources Group, Inc. (OTC
Bulletin Board: APXR) announces increased value of its Beaufort Sea Well and
current status of the Mackenzie Valley Pipeline.
    The CEO of ExxonMobil, Rex Tillerson recently told a panel on global
energy security that the Mackenzie Valley Pipeline Project is still on the
table even though the CA$16.2 Billion price tag could be headed higher.
ExxonMobil is the key corporate decision maker in the project, owning 69.6
percent of consortium leader Imperial Oil which has a 34.4 percent interest,
while wholly owned ExxonMobil Canada has another 5.2 percent. Despite the
regulatory delays and the inflated costs, Mr. Tillerman stated satisfactory
progress has been made on the regulatory front and discussions with the
Canadian Government are continuing because the project is still alive.
    In July, Indian & Northern Affairs Canada released the results of its
2007 Call for Bids in the Beaufort Sea Mackenzie Delta area stating it had
accepted three bids with work bonus bids totaling CA$598.1 Million for
1,043,044 acres. One parcel in the package is owned by Imperial Oil Ventures
Limited (50%)and ExxonMobil Canada Properties (50%) with a work expenditure
bid of CA$585.0 Million.
    With a commitment of this size, it signals the confidence their companies
have in the completion of the Mackenzie Valley Pipeline. This is great news
for Apex. 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 I-27 Significant Discovery Lease

    
    Oil (US$/Barrell)                        $81.7000
    Gas (US$/ft)                              $6.5700
    Apex Share of Project                      3.7450 %
    




    
    1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:
                                   Total Dollars          Apex Dollars
    Gas (Bscf)        108     $    709,560,000.00    $    26,573,022.00
    Oil (MM STB)    8.976     $    733,339,200.00    $    27,463,553.04
                              $  1,442,899,200.00    $    54,036,575.04
    


    
    2) ITIYOK 40KM PROBABLE GAS & OIL RESERVES:
                                   Total Dollars          Apex Dollars
    Gas (TCF)        1.16     $  7,621,200,000.00    $   285,413,940.00
    Oil (MM STB)      160     $ 13,072,000,000.00    $   489,546,400.00
                              $ 20,693,200,000.00    $   774,960,340.00
    


    
    3) ITIYOK 21.54KM POSSIBLE GAS & OIL RESERVES:
                                   Total Dollars          Apex Dollars
    Gas (Bscf)        625     $  4,106,250,000.00    $   153,779,062.50
    Oil (MM STB)       86     $  7,026,200,000.00    $   263,131,190.00
                              $ 11,132,450,000.00    $   416,910,252.50
    


    
    GRAND TOTAL
                                   Total Dollars          Apex Dollars
    Gas (Bscf)                $ 12,437,010,000.00    $   465,766,024.50
    Oil (MM STB)              $ 20,831,539,200.00    $   780,141,143.04
                              $ 33,268,549,200.00    $ 1,245,907,167.54
    



    
     NOTES:
     Bscf Gas = Billion standard cubic feet of Gas
     TCF Gas = Trillion Cubic Feet of Gas
     MM STB Oil = Million Stock Tank Barrels of Oil
    



    
    The partners in the Itiyok 1-27 Well are as follows:
    IMPERIAL OIL RE

SOURCES VENTURES 58.67312% DEVON ARL CORPORATION 14.72% PETRO - CANADA 14.20% APEX RE

SOURCES GROUP INC. 3.745% CONNOCOPHILLIPS CANADA RE

SOURCES CORP. 3.003% CANALANDS RE

SOURCES 2.255734% CANADIAN NATURAL RE

SOURCES 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. The increased interest in the Beaufort Sea Reserves and completion of the Mackenzie Valley Pipeline coupled with the North American need for fuel continuing to increase, adds significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well. By the Board of Directors, Apex Resources Group, Inc. Investor Relations: Eric David & Sons Ste # 501- 320 10 Schalks Crossing Road Plainsboro, NJ 08536 Phone: (609) 529-3671 Website: ericdavid.com Email: steveweiss@ericdavid.com Web site: http://www.ApexResourcesGroup.com Apex Resources Group, Inc. 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.

For further information:

For further information: investors, Eric David & Sons, +1-609-529-3671, 
steveweiss@ericdavid.com, for Apex Resources Group, Inc. Web Site:
http://www.apexresourcesgroup.com

Organization Profile

APEX RESOURCES GROUP, INC.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890