Devon Energy Corporation reveals It found 250 Million Barrels of Oil in
the Beaufort Sea. At today's price of oil at US$90.00 a barrel, this find
is worth US$21.6 Billion in the ground.
SALT LAKE CITY, Oct. 29 /CNW/ -- Apex Resources Group, Inc. (OTC Bulletin
Board: APXR) announces Beaufort Sea Activity Increases as MGM Energy
Corporation Agrees To Deliver Gas To The Mackenzie Valley Pipeline. Devon
Energy Corporation reveals it found 250 Million Barrels of Oil in the Beaufort
Sea. At today's price of oil at US$90.00 a barrel, this find is worth US$21.6
Billion in the ground.
MGM Energy Corp. (MGX.TO) based in Calgary, Alberta, Canada has signed
the first "outside" deal to deliver natural gas to the proposed Mackenzie
Valley Pipeline. The agreement secures 200 million cubic feet per day to the
Mackenzie Valley Pipeline. The agreement gives the Mackenzie Gas Project
proponents "tangible evidence that additional volumes of natural gas are
committed" to the project.
MORE EXPLORATION IN THE ARCTIC
MGM Energy Corp. took the step because of the money it plans to spend in
the upcoming winter exploring for gas in the Delta. MGM Energy is positioned
to be the most active explorer in the Arctic this winter, with plans to spend
C$60 million on three wells, plus C$35 million for seismic testing and C$7
million for general and administrative expenses, totaling C$102 million for
2008, compared with its anticipated expenditures of C$236 million this year,
C$38 million for drilling.
The agreement enables the natural gas MGM Energy currently owns
(estimated at 400 billion cubic feet of contingent resources) and for which it
is exploring to be delivered to the Mackenzie Valley pipeline on startup.
Until now, the only assured volumes are from the Delta anchor fields owned by
Imperial Oil, Shell Canada, ConocoPhillips Canada and ExxonMobil Canada.
GIANT OIL FIND IN BEAUFORT SEA
Devon Energy Corp. revealed it found 240 million barrels of recoverable
oil in the Beaufort Sea two years ago when it was actually searching for
natural gas, confirming there are huge resources in the Canadian Arctic. Devon
Energy said its US$60-million Patoka C-60 well, two years ago portrayed as a
disappointment because it didn't find the trillions of cubic feet of gas it
was aiming for, struck an estimated 240 million barrels of recoverable oil,
which at current oil price of US$90 a barrel amounts to US$21.6 Million of oil
in the ground.
While Devon Energy still appears to be playing down the 240 million
barrels of recoverable oil find, the company has obtained a significant
discovery licence (SDL). Some 26 significant discoveries licenses (SDL) --
eight gas, four oil and 14 oil and gas -- were made in the Beaufort Sea during
a drilling boom two decades ago funded largely through federal incentives. At
the time, companies such as Dome Petroleum Ltd., Imperial Oil Ltd. and Gulf
Canada Resources Ltd. were searching for oil. Apex Resources Group Inc. owns
3.745% working interest in Significant Discovery License (SDL) No.55, which
contains 4,480 acres with Imperial Oil as a partner and the operator.
The National Energy Board estimated that between 585 million barrels and
1.44 billion barrels of recoverable oil have been discovered in the Mackenzie
Delta/Beaufort Sea region, not including Patoka. Devon's Patoka well was the
first to be drilled in the region in 16 years, but required a major effort
because the Beaufort lost its infrastructure after oil companies pulled out
nearly two decades ago. With Devon Energy announcing it found 240 million
barrels, this will cause oil & gas companies to serious look at the Arctic as
the New Middle East of North America.
This summer (2007), Imperial Oil made a commitment with its parent, Exxon
Mobil Corp., to spend $585-million to explore in the Beaufort over the next
nine years, after winning exploration rights to a 205,321 hectares parcel
located about 140 kilometres from the Mackenzie Delta.
Also, ConocoPhillips Corporation secured a licence to explore a
103,711-hectare offshore parcel with a work-expenditure bid of $12-million,
while Chevron Corp. picked up rights to a third block with a bid of about
SOURCES GROUP INC. INTEREST
"The agreement by MGM Energy Corp. and plans for the exploration
expenditures by MGM Energy and Exxon Mobil Corp. and Devon Energy Corp. having
drilled the Pakota Well are all extremely positive signals of the confidence
in the completion of the Mackenzie Valley Pipeline. The size of the giant pool
found by Devon Energy, is indicative of the sizes of pools in the Beaufort Sea
area, much like the Itiyok I-27 Well.
Apex Resources Group Inc. owns 3.745% working interest in the Itiyok I-27
Well in the Beaufort Sea and is the fourth largest partner in the Itiyok I-27
Well with a 3.745% working interest, with Imperial Oil as the operator and the
largest partner with an interest of 58.67312%. At current oil & gas market
prices, the Apex 3.745% working interest in the Itiyok I-27 well in the
Beaufort Sea is value at US$1.3 Billion Dollars.
ITIYOK I-27 Significant Discovery Lease
Oil (US$/Barrel) $90.0000
Gas (US$/ft3) $7.5000
Apex Share of Project 3.7450%
1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 108 $810,000,000.00 $30,334,500.00
Oil (MM STB) 8.976 $807,840,000.00 $30,253,608.00
2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (TCF) 1.16 $8,700,000,000.00 $325,815,000.00
Oil (MM STB) 160 $14,400,000,000.00 $539,280,000.00
3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 625 $4,687,500,000.00 $175,546,875.00
Oil (MM STB) 86 $7,740,000,000.00 $289,863,000.00
Total Dollars Apex Dollars
Gas (Bscf) $14,197,500,000.00 $531,696,375.00
Oil (MM STB) $22,947,840,000.00 $859,396,608.00
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 I-27 Well are as follows:
IMPERIAL OIL RE
SOURCES VENTURES 58.67312%
DEVON ARL CORPORATION 14.72%
PETRO - CANADA 14.20%
SOURCES GROUP INC. 3.745%
CONNOCOPHILLIPS CANADA RE
SOURCES CORP. 3.003%
CANADIAN NATURAL RE
SOURCES LIMITED 1.23445%
CANADIAN FOREST OIL LTD. 1.084348%
677862 ALBERTA LTD 1.084348%
The Itiyok I-27 Well was originally drilled in 1983, at a total cost of
C$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
Regrettably, due to health reasons, Mr. John Hickey has resigned from the
Board of Directors of Apex Resources Group Inc.
Our asset has always been significant, but these recent developments have
added even more value to the 3.745% working interest in SDL No.55. In my
opinion, Apex is an undervalued gem in the rough and a bargain investment
opportunity as a positioning strategy in what will be a major oil & gas play"
Stepen Golde, Director of Apex stated.
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.
For further information:
For further information: Investor Relations, Eric David & Sons,
+1-609-529-3671, firstname.lastname@example.org, for Apex Resources Group, Inc. Web