Apex Resources Reports BP Exploration to Develop $1 Billion Project in the Beaufort Sea, While Alaska Gas Line is Gaining Momentum
Canada NewsWire "All News "
SALT LAKE CITY, Feb. 28 /CNW/ -- Apex Resources Group Inc. (OTC Bulletin Board: APXR) reports BP Exploration to develop $1 Billion project in the Beaufort Sea, while Alaska gas line is gaining momentum.
BP Exploration (Alaska) has reported that the company is seeking approval for a $1 Billion project to develop its Liberty Oil Field in the Beaufort Sea. Liberty is located five miles offshore from Mikkelson Bay, northeast of the Prudhoe Bay oil field, which is North Slope's largest field. The plan is to use a pad near the Endicott field, eight miles to the west, to drill Liberty.
The wells will set world records for extended-reach drilling, drilled laterally 40,000 to 45,000 feet from the surface location of the drill rig. The current extended-reach drilling record was about 35,000 feet. If the extended-reach drilling technology is successful, the goal is to apply it at other locations with oil reservoirs and discoveries in the Beaufort Sea.
According to a BP official, the field has about 100 million barrels of recoverable oil, making it the largest undeveloped known conventional oil reservoir on the North Slope. The plan for handling the production from Liberty is to use the Endicott Field with ample spare capacity in oil processing and pipelines which were designed for a peak production rate of 120,000 barrels per day. Current production at the Endicott is only 15,000 barrels per day.
The Mackenzie Valley Pipeline development is spurring further production, while the progress on the $25 Billion Alaska Highway Gas Pipeline with the potential to eventually connect to an Alberta Pipeline system, are both creating great potential for exploration in the Northern Arctic. Gov. Sarah Palin (Alaska), analysts and Canadian officials believe the Alaska Highway Gas Pipeline carries implications for how Alaska's North Slope will help industrial growth throughout North America. The cooperation between the USA government, Canadian government and industry appears to be very positive. Lawmakers and analysts don't see the Mackenzie pipeline as competing with an Alaskan project, since there is a huge increasing market for all the gas from that region.
With BP moving forward with the $1 billion to develop the Liberty Project in the Beaufort Sea, and Shell recently announcing a commitment to drill 18 wells in the Beaufort Sea area, the value to the 3.745% working interest Apex purchased in 1997, in the Itiyok 1-27 Well in the Beaufort Sea in Canada, becomes more valuable.
The partners in the Itiyok 1-27 Well are as follows:
IMPERIAL OIL RESOURCES VENTURES 58.67312%
DEVON ARL CORPORATION 14.72%
PETRO -- CANADA 14.20%
APEX RESOURCES GROUP INC. 3.745%
CONNOCOPHILLIPS CANADA RESOURCES CORP. 3.003%
CANALANDS RESOURCES 2.255734%
CANADIAN NATURAL RESOURCES 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.
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 1-27 -- OIL US$60.00/B & NG US$7.34/ft3
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$7.34/ft3 = US$29.6536 Million (Gas)
B) 336,000 STB -- Oil * US$60.00/B = US$20.16 Million (Oil)
US$49.8136 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$7.34/ft3 = US$249.56 Million (Gas)
B) 4.7 MM STB -- Oil * US$60.00/B = US$282.0 Million (Oil)
US$531.56 Million (Gas & Oil)
PART 3: POSSIBLE GAS & OIL RESERVES: (21.54KM2)
TOTAL:
A) 625 Bscf - Gas
B) 86 MM STB -- Oil
Apex Working Interest -- (3.745%):
A) 23.4 Bscf -- Gas * US$7.34/ft3 = US$171.756 Million (Gas)
B) 3.2 MM STB - Oil * US$60.00/B = US$192.0 Million (Oil)
US$363.756 Million (Gas & Oil)
TOTAL OF ALL 3 GAS & OIL:
US $945.1296 Million
The recent progress of the Mackenzie Valley Gas pipeline together with the North American need for new gas supplies continuing to increase, adds significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.
While Apex Resources maintains its core Oil & Gas business activities, under the guidance of our newly appointed Investor and Public Relations firm Eric David & Sons, Inc, in New Jersey, Apex will be developing a Business Development Plan, focused on investments outside its Oil & Gas Business. "This is giving us a magnificent opportunity to grow our business exponentially through acquisitions and investments in various markets," stated Mr. John Hickey director of Apex Resources.
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 as "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.
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from 8-K: "ITEM 1.02 TERMINATION OF A MATERIAL DEFINITIVE AGREEMENT
On November 29, 2006, the Company terminated seven subscription agreements for a total of 18,000,000 shares at varying amounts, ranging from $0.05 to $0.20 per share for a total of $2,450,000.00. The agreements that were terminated were subscription agreements with Roger Reynolds for 2,000,000 shares entered into on November 22, 2004, Global Capital SA for 3,000,000 shares and Nevada Holdings for 3,000,000 shares entered into on November 29, 2004, Redwood Management, Ltd. for 2,500,000 shares and Network Capital Group, Inc. for 2,500,000 shares entered into on December 8, 2004 and Royce Enterprises, Ltd. for 2,500,000 shares and Spectrum Financial Corp. for 2,500,000 shares entered into on December 22, 2004."
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posted
what does this BP project ( witch will take AT LEAST several years to develope ) have to do with the 1 - 27 well? they have a 3.475% working interest in that, not the BP project??!. PR hype!! no real substance. roll the dice?
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quote:Originally posted by madmoney: what does this BP project ( witch will take AT LEAST several years to develope ) have to do with the 1 - 27 well? they have a 3.475% working interest in that, not the BP project??!. PR hype!! no real substance. roll the dice?
their calculation is based on 3.475% of working interest (check data above). Real substance? Don't need - I'm just playing this one... L2s are not bad - breaking of .045 wall get easy way to .07...
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posted
no trades in the last hour?, the 1-27 well (thier 3.745% interest) was drilled in 1983 for 85 million canadian? if you look at the reserve "ESTIMATES" you can see that the reason this well never went into production is because it may not be economicaly viable to do so.( bring into production ) ( to rig,pipe,and pump it could cost 100`s of millions ) considering they have 58 grand in cash! doubtless out of thier reach! GLTY!!
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