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Apex Resources Group Inc. Reports Mackenzie Valley Pipeline Project Moving Forward

Posted on: Monday, 27 November 2006, 09:00 CST

SALT LAKE CITY, Nov. 27 /PRNewswire/ -- Apex Resources Group Inc. (BULLETIN BOARD: APXR) , Update on Mackenzie Valley Pipeline Project

One possible roadblock to the Mackenzie Valley Pipeline moving forward appears to have been resolved. The Deh Cho First Nations, of approximately 4,500 people, claim traditional territory which amounts to about 40 per cent of the Mackenzie Valley Pipeline route, were the only group not to sign on to the deal.

Last June, the Deh Cho rejected a deadline to accept the 34 per cent share the group was holding open for them. But late last month, two Deh Cho chiefs, representing almost fifty percent of the Deh Cho, split from Deh Cho Grand Chief Herb Norwegian. The two Deh Cho Chiefs have formed a corporation to purchase and hold their portion of those shares in the Mackenzie Valley Pipeline Project and are lobbying others in the area to reject the stance of Grand Chief Herb Norwegian. Chief Herb Norwegian has been using the Mackenzie Valley Pipeline Project as leverage in land-claims negotiations.

Commercial Director Carl Chala of the Aboriginal Pipeline Group (APG), is encouraged by the communities taking initiative. The Aboriginal Pipeline Group (APG) hopes to take one-third share in the project for First Nations along the pipeline route. Chala said, now the overall Deh Cho leadership has passed on the deadline to buy in, the APG will consider selling shares to individual communities.

Keyna Norwegian from the Liidlii Kue First Nation, which represents more than 1,200 Dene from the Fort Simpson area, right in the heart of the pipeline's proposed route, said that at the regional level, the members decided to take our share of the pipeline.

The 600 member Acho Koe First Nation from Fort Liard, led by longtime development proponent Harry Deneron, is the other member of the joint venture.

Former premier of the Northwest Territories, Jim Antoine, has been visiting other Deh Cho communities and is attempting to have them joining the new joint venture.

Kenya Norwegian is actively talking to the other communities in the Deh Cho, to assess if they are interested. Kenya Norwegian believes it is a mistake to link pipeline ownership with land-claim and self-government talks and that political negotiations shouldn't prevent the Deh Cho Dene from doing business. She considers the pipeline an economic opportunity. Keyna Norwegian indicated surveys of her people in both 2002 and 2003 showed "overwhelming" support for the pipeline.

This is good news for the $7-billion Mackenzie Valley Pipeline proposal, which has been stalled by regulatory delays, cost inflation and court decisions. Meanwhile, main project proponent Imperial Oil (TSX: IMO) has said it will have a new estimate of costs -- expected to be significantly higher -- early in the new year.

The Mackenzie Valley Gas Pipeline in the Northwest Territories of Canada, will be 700 miles long, and has 7 trillion cubic feet of known reserves. When the Mackenzie Valley Gas Pipeline comes on line, it will deliver as much as 1.8 billion cubic feet of gas a day.

In June 1997, Apex Resources Group Inc. purchased a 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea in Canada. 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 comprise 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.

The progress of the pending construction, of both the Mackenzie Valley Gas pipeline & the Alaska Gas pipeline, is significant for the producing of the Itiyok 1-27 Well in the Beaufort Sea in Canada. With the North American need for new gas supplies continuing to increase, intensifying the necessity to complete the pipelines, while adding significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.

By the Board of Directors, APEX RESOURCES GROUP INC. 299 South Main Street Suite1300 Salt Lake City, 84111 Utah, USA Investor Relations: Roger Reynolds Tel:(780)469-0199 Web Site: http://www.apexresourcesgroup.com/ John M. Hickey Director

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.

Apex Resources Group Inc.

CONTACT: investors, Roger Reynolds of Apex Resources Group Inc.,+1-780-469-0199

Web site: http://www.apexresourcesgroup.com/

Source: PRNewswire

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