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With hearings finally starting today this stock could see a nice push over the next couple weeks...
From March '05: Apex Reports on News Indicating 'Door is Closing For New Players in Oil Sands;' Apex Holds Firm Positioning in Arctic
Apex Resources Group Inc. (OTC BB: APXR), today reported on news from the Financial Post (Canada) that the Athabasca oil sands containing one of the largest accumulations of crude oil in the world is closing down on new business entering the area.
Most of the primary leases in the Athabasca basin are now controlled, capping the number of new entrants and raising the possibility of takeovers.
John Mawdsley, analyst at Raymond James, commented, "It is important to note that if a new player wants to become involved in oil sands mining, the only way to do this would be to buy another company." At the same time a growing number of large companies are looking to enter the business or increase their exposure - with the only route being acquisitions and/or IPO's (initial public offerings). This rising interest goes as far as China's three major oil companies, French Oil Multinational and at least four major American companies: ChevronTexaco Corp., Murphy Oil Corp., Marathon Oil Corp., and ConocoPhillips.
"With the 'door closing' on new entrants, a new door of opportunity is opening for Apex, its shareholders and the investment community. This news clearly attests to the value of our investment and the growing interest internationally in the great upside potential of investing in the Arctic," stated John 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$50.00 per barrel and gas close to US$7.00 per cubic feet, Apex interest in proven reserves would be 45 Million US Dollars and with an additional potential to be drilled out would represent 323 Million US Dollars.
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. As our consumption increases the need for Northern gas is substantially increased, creating more value for Apex' holdings.
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