Apex Resources Group Inc. Reports Shell Mobilizes Drilling Equipment for Shallow Water Chukchi and Beaufort Drilling
SALT LAKE CITY, May 27 /PRNewswire-FirstCall/ — Apex Resources Group Inc. (Pink Sheets APXR) reports Shell Mobilizes Drilling Equipment for shallow water Chukchi and Beaufort drilling.
Shell is planning to go ahead with its 2010 exploration program in the Beaufort and Chukchi seas off northern Alaska, despite the unfolding oil-spill disaster in the Gulf of Mexico. In preparation for assembling its Arctic drilling fleet, Shell has started moving vessels and has mobilized every piece of equipment that’s not local (in Alaska) and other equipment from distant locations, Shell’s Alaska vice president Pete Slaiby stated.
Slaiby expressed his confidence in the safety of his company’s planned operations because drilling conditions in the Alaska OCS will be very different from those in the Gulf of Mexico, because they are in 150 feet of water, versus 5,000 feet, and have about one third of the reservoir pressure. “The Chukchi Sea wells will bottom out at around a depth of 8,000 feet, as compared to the around 18,000-foot depth of the Gulf of Mexico well that went out of control,” Slaiby said.
Slaiby said that Shell officials are now embarking on visits to the North Slope to meet with people from the local communities, including people from the North Slope Borough and from the Northwest Arctic Borough, for discussions about how Shell’s Arctic drilling will compare with drilling in the Gulf of Mexico. Shell wants to tell the story while recognizing the importance to provide the communities the opportunity to discuss their concerns.
Shell is confident that it can obtain the remaining permits that it needs for its Alaska drilling program in time to move its drilling fleet north through the Bering Strait in early July, as the Arctic sea ice retreats to the north. Shell is particularly pleased with the unanimous decision by a panel of judges in the U.S. Court of Appeals for the 9th Circuit to reject an appeal against approval of the company’s 2010 Chukchi Sea and Beaufort Sea exploration plans.
However there is some uncertainty with respect to a court rejection of the revised version of the lease sale program of the Chukchi Sea leases. As a back up plan, Shell will likely go ahead with its planned Beaufort Sea drilling, even though the company views its Chukchi Sea program as having higher priority. Slaiby said, “If things go badly in the DC Circuit, the Beaufort would clearly still be an option.”
Roger Reynolds, Director of Apex Resources Group Inc. concludes that the unfortunate BP Oil disaster, might actually open up the shallow well drilling in the Arctic, with the potential of much safer drilling, while the USA can continue to strive to become energy independent. The fact that Shell is now positioning all “out-of-state” equipment to the North, speaks volumes of the focus toward opening up the very rich Arctic, which includes the Beaufort Sea.
Apex Resources Group Inc. is partners with Imperial Oil and ConocoPhillips and other majors in the Itiyok I-27 well a major oil and gas discovery known as the Significant Discovery License #55 (SDL#55) located in the Beaufort Sea. Apex Resources Group Inc. is the fourth largest partner in the Itiyok I-27 Well with a 3.745% working interest.
ITIYOK I-27 WELL (SDL #55) PARTNERS IN ORDER OF HIGHEST % : -----------------------------------------------------------------------
IMPERIAL OIL RESOURCES VENTURES 58.67312% CONOCOPHILLIPS CANADA RESOURCES CORP. 17.2003% DEVON ARL CORPORATION 14.72% APEX RESOURCES GROUP INC. 3.745% CANALANDS RESOURCES 2.255734% CANADIAN NATURAL RESOURCES LIMITED 1.23445% CANADIAN FOREST OIL LTD. 1.084348% 677862 ALBERTA LTD 1.084348%
CITADEL ENGINEERING REPORT
The Citadel Engineering Report states that the Itiyok I-27 Well (SDL#55) was originally drilled in 1983, at a total cost of CA$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.
APEX RESOURCES GROUP INC. PROVEN, PROBABLE & POSSIBLE GAS & OIL RESERVES IN THE ITIYOK I-27 SDL #55 IN THE BEAUFORT SEA VALUED AT US$1.2+ BILLION DOLLARS:
In 1997 Apex Resources Group Inc. purchased a 3.745% working interest in the Itiyok I-27 Well (SDL#55) in the Beaufort Sea and is the fourth largest partner in the Itiyok I-27 Well, 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 estimated value is US$1.2+ Billion Dollars as calculated below.
ITIYOK I-27 Significant Discovery Lease Oil (US$/Barrell) $75.0000 ----------------- -------- Gas (US$/ft(3)) $5.0000 --------------- ------- Apex Share of Project 3.7450% --------------------- ------
1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (Bscf) 108 $540,000,000.00 $20,223,000.00 Oil (MM STB) 8.976 $673,200,000.00 $25,211,340.00 $1,213,200,000.00 $45,434,340.00
2) ITIYOK 40KM(2) PROBABLE GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (TCF) 1.16 $5,800,000,000.00 $217,210,000.00 Oil (MM STB) 160 $12,000,000,000.00 $449,400,000.00 $17,800,000,000.00 $666,610,000.00
3) ITIYOK 21.54KM(2) POSSIBLE GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (Bscf) 625 $3,125,000,000.00 $117,031,250.00 Oil (MM STB) 160 $12,000,000,000.00 $449,400,000.00 $15,125,000,000.00 $566,431,250.00
GRAND TOTAL Total Dollars Apex Dollars Gas (Bscf) $9,465,000,000.00 $354,464,250.00 Oil (MM STB) $24,673,200,000.00 $924,011,340.00 $34,138,200,000.00 $1,278,475,590.00
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
MACKENZIE VALLEY PIPELINE APPROVED BY JOINT REVIEW PANEL
After waiting about 9 years, the Mackenzie Valley natural-gas pipeline has finally been approved by a seven-member panel, which had to consider the environmental and social impact of the 1,200-kilometer project headed by Imperial Oil Ltd.
In a statement the Joint Review Panel (JRP) stated “it is confident that the project as filed, if built and operated with full implementation of the panel’s recommendations, would deliver valuable and lasting overall benefits and avoid significant adverse environmental impacts.” It was added that the project “would provide the foundation for a durable and sustainable future in the Mackenzie Valley and the Beaufort Delta regions, adding that this future would be a better one than a future without the project.”
According to the report, the pipeline would ship up to 1.9 billion cubic feet of natural gas per day from the edge of the Beaufort Sea down to Alberta and southern markets. Many in the Northwest Territories view this as a means of achieving economic independence.
The panel was created in 2001, in an effort to streamline regulatory processes around the pipeline. In 2006, it launched public hearings in the Northwest Territories with the expectation of submitting a report by mid-2007, but the deadline was delayed and extended at least twice as the panel analyzed the findings. According to TransCanada Corp. chief executive Hal Kvisle, he estimated the regulatory delays have added $3 billion to the project’s bottom line.
In 2000 the Mackenzie Valley pipeline was announced by a consortium of four oil and gas companies, Imperial Oil, Exxon-Mobil Oil, Shell Oil & ConocoPhillips, and also included aboriginal partners, known as the Aboriginal Pipeline Group Inc., consisting of 5 First Nations tribes and their financial backer Trans Canada Pipelines Inc. Trans Canada Pipelines Inc. wants the natural gas to feed its’ markets in the USA.
These groups have continuously lobbied for federal support, boosting efforts after filing the pipeline application with regulators in 2004. Apex Resources Group Inc. believes the approval announcement is an opportunity for all parties to work together to finance and start the construction of the CA$16.2 Billion Dollar Mackenzie Valley Gas Pipeline for the benefit of all Canadians, while also benefitting the USA by increasing energy independence. This also spurts further developments to go ahead and to open up the huge potential of Northern Canada, where there is an abundance of mineral wealth of Gas, Oil, Gold, Diamonds, Copper, and Uranium, providing job opportunities and growth for the region and for their First Nation peoples.
APEX MISSION STATEMENT
Apex Resources Group Inc. now has the bases to start building a very powerful Gas and Oil Company for a very prosperous 2010 and a decade of growth for Apex and the Shareholders. The Company would like to take this opportunity to thank all the shareholders for their past and continued support through some very challenging times.
By the Board of Directors,
John Ray Rask
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.
SOURCE Apex Resources Group Inc.