More oil in the news.... $50 to $500 million possible interest!
SALT LAKE CITY, Sept 27, 2005 /PRNewswire-FirstCall via COMTEX/ -- Apex Resources Group Inc. (OTC BB: APXR), today reported on news with oil prices at record highs, that Devon Energy is on the brink of reviving Beaufort Sea Drilling and extending gas supplies for a Mackenzie Valley Pipeline.
All Devon Energy (DVN-Z) needs now is an Arctic freeze-up to spud the first exploratory well since 1989 in the Canadian Beaufort Sea, in hopes of extending gas supplies for a Mackenzie Valley Pipeline.
High tech 3-D seismic data that was not available to explorers before the region was consigned to the deep-freeze after logging 26 significant discovery licenses from 41 shallow and 50 deepwater wells, Devon needs "some encouragement" from the well, and also requires assurance of "fair and reasonable" access to the planned Mackenzie Valley gas pipeline.
Negotiating an agreement between Imperial Oil(IMO-T), the Mackenzie Gas Project's lead partner, and the Mackenzie Explorer Group has so far proven elusive, forcing the independents to apply more pressure.
"Anadarko Canada(APC-Z), BP Canada Energy(BP-Z), Chevron Canada Resources(CVX-Z), Devon(DVN-Z), EnCana(ECA-T) and Nytis Exploration filed a notice of motion earlier this month asking the federal regulator to order Imperial to make public several documents, including the proposed Mackenzie gas gathering and processing facilities development and operating agreement, the DOA, and the proposed transportation and processing agreement, TPA.
The group, with only Petro-Canada(PCA-T) declining to participate, believes the board must approve the tolls and the access and tariff provisions for the gathering system if the Mackenzie project is to be accessible to producers other than just Imperial, Shell Canada(SHC-T), ConocoPhillips Canada(COP-Z) and ExxonMobil Canada(XOM-Z).
Those applicants will also be required to choose between the DOA and the TPA by Sept. 30 or risk not having their requested capacity included in the initial design for the Mackenzie gathering system, which includes a natural gas liquids pipeline from Inuvik to Norman Wells in the Northwest Territories and a gas processing plant near Inuvik."
Gary Park ~ Petroleum News
Concurrently, Reuters reported on news that Exxon (XOM-Z) CEO, Lee Raymond told reporters that "gas production has peaked in North America."
Asked whether production would continue to decline even if two huge arctic gas pipelines were built, Raymond responded, "I think that's a fair statement, unless there's some huge find that nobody has any idea where it would be."
The Mackenzie Valley Pipeline which includes partners Imperial Oil (IMO- T), Shell Canada (SHC-T), ConocoPhillips(COP-Z), and Aboriginal Pipeline Group has been stalled due to land access issues with native groups in Canada. At a cost of come C$7 billion (U.S. $5.6 billion), the Mackenzie line could by 2010 bring up to 1.9 billion cubic feet per day of much needed Arctic gas with a steadily rising demand.
The larger Alaska Pipeline, also stalled as Exxon (XOM-Z), BP-Z and ConocoPhillips (COP-Z) seek fiscal terms with the state regulatory clarity from the Canadian government, could tap as much as 6 billion cubic feet a day of gas from the Alaska North Slope by 2012 at a cost of $15-$20 billion.
"In terms of those two projects, I think Mackenzie is somewhat ahead of Alaska. Obviously, both of them have to go through Canada and to that extent the government has a significant impact on the timing of both projects," Mr. Lee Raymond, Chairman of Exxon Mobil, continued while speaking to Reuters reporters.
"The facts are that gas production continues to decline, and will start to decline even more rapidly. By the time we get to that period (2010-2012), we will need it badly," Mr. Lee Raymond concluded.
While the number of U.S. rigs drilling for natural gas has climbed about 20 percent over the last year and prices are at record highs, producers have to raise output. Experts say that easy onshore and shallow water basins have been mostly tapped or are off limits for environmental reasons, and new technologies like horizontal drilling have been draining wells in two to three years, a much faster rate than the five years or more during the 1990's.
The U.S. Energy Information Administration estimates that natural gas production will be flat this year and increase only one half percent next year.
"It is clear that the U.S. economy is being adversely impacted by the continuing dependence of foreign sources of fuel which is reaching its peak. The urgent need to turn to domestic sources is becoming seriously evident as consumers question every expenditure. We, at Apex, continue to contend, and evidence is showing, that the pipeline and the only dependable and proven source of fuel is in our backyard. The investment Apex made in 1997 was clearly one of the most foretelling indicators of our future," stated John M. Hickey, Director.
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$70.00 per barrel and gas close to US$13.00 per cubic feet, Apex interest in proven reserves would be 52 Million US Dollars and with an additional potential to be drilled out would represent 554 Million US Dollars.
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/ft(2) = US $52.520 Million (Gas) B) 336,000 STB - Oil *US$70.00/B = US$23.520 Million(Oil)
US$76.040 Million (Gas&Oil)
Part 2 - Probable Gas & Oil Reserves: (40KM(2))
Total: - A)1.16 TCF - Gas B) 160 MM STB - Oil
Apex Working Interest - (3.745%)
A) 34 Bscf - Gas * US$13.00/ ft(3) = US$442.000 Million (Gas) B) 4.7 MM STB - Oil * US70.00/B = US$329.000 Million (Oil)
US$771.000 Million (Gas & Oil)
Part 3 - Possible Gas & Oil Reserves: (21.54 KM(2))
Total: - A) 625 Bscf - Gas B) 86 MM STB - Oil
Apex Working Interest - (3.745%)
A) 23.4 Bscf - Gas *US$13.00/ft(3) = US$304.200 Million (Gas)
B) 3.2 MM STB - Oil *US70.00/B =US$224.000 Million (Oil)
US$528.200 Million (Gas & Oil)
Total of All 3 US $1.375.240 Billion Gas & Oil
In October 2004 the announcement of the development of the Mackenzie Valley Pipeline became of significant importance to Apex interest in the Beaufort Sea. A substantial portion of the gas to be transmitted from the Beaufort Sea through Alberta will be used to further develop the Alberta Oil Sands (formerly the Alberta Tar Sands).The Alberta Oil Sand reserves that are retrievable today are estimated to be 280-300 billion barrels of oil and total reserves for Alberta including oil not recoverable by using current technology are estimated at 1700-2500 billion barrels. Cyclic steam stimulation (CSS) and steam assisted gravity drainage are currently being used in recovery of oil from the sands. The steam will be generated by the use of the gas to be transmitted by the new pipeline.
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
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.
-------------------- I may be wrong, but I don't think so.... Posts: 837 | From: Madison, WI | Registered: Sep 2005
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