Apex Resources Inc (SLMLF)

[stervc]

patchman, “Bottom Line” with APXR...

Bottom line, it is going to be up to APXR to come out and inform the public of what exactly their role is going to be from the approval of this $34,138,200,000.00 federal project. So far, the company has done a very good job with not appearing to be a "pump and dump" although they could do a little better job of informing and keeping in contact with their shareholders. I’m still not mad at them as it is still a little premature considering that the major federal approval has just recently been announced.

You are not mistaken in thinking that the federal approval of the Mackenzie Project is to fund the infrastructure for a pipeline. This is what is known as the "onshore" piece of the project and the point of contacts (POCs) of the "onshore" piece of the project will be headed up through Imperial Oil taking the lead for obtaining funding for the entire project. I spoke to the head guy of the project.

This guy had no idea who APXR was which is what spooked me at first. Even the people I spoke to at the Natural Energy Board had no idea who APXR was as they were the ones who referred me to the head guy at Imperial Oil to get some answers.

After speaking to the guy, he said that it seems like he should know who these guys were if they were going to be part of the "onshore" piece. Again, I was a little nervous... at first. Then I mentioned to him how APXR had acquired a 3.745% working interest of the Significant Discovery License #55 (SDL#55) located in the Beaufort Sea as explained below from an earlier PR (and within an SEC filing) from APXR:

http://ih.advfn.com/p.php?pid=nmona&article=41589625
...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. ...

And...

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%.

That's when he then told me "OH" and that that part of the project will come after they must first do from building the infrastructure of the "onshore" part of the project. He said that that part is considered the "offshore" part and he has no idea of any of the details of who will be getting any percentages. I asked if there was a POC that I can speak to about the "offshore" part that could talk about who all were to later reap benefits from the project and he told me that he does not know of one, but that it does exist. He said that the best thing he could recommend is for me to go by what’s on file at the SEC and on the license. He said that I maybe could Google the license to see the details of the license and the percentages that it states for who will be receiving such.

That took me full circle to go by the licensed information that APXR had filed with the SEC back on September 30, 2007, page 10 below:

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=5842833


If you notice, it states that the partners of project were coordinated by Exxon Oil Corporation and not by Imperial Oil. So it appears that we have been trying to contact the wrong major company to get the answers of any details of involvement of APXR with this project.

APXR is “not” in the production business so it matters not that they won't produce until 2018. It was mentioned before that the major companies will take on all of the expenses for the project once approved. Well, it was approved so no dollars will come out of APXR’s pocket. This means that any expenses and cost of goods sold in the production process will have no effects on APRX… at all.

With APXR not being in the production business, one would have to wonder why they would acquire a 3.745% working interest which is as you have stated in your post below… ”the annual revenues will be a small fraction of the $34 Billion.”
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57914544

You are correct with that thought, but I think you are not interpreting it correctly. First, I think even though, as you have stated, the annual revenues for APXR’s 3.745% is a small fraction from a percentage standpoint, but I think you are not seeing that it is a very large fraction from a dollar standpoint. You see, 3.745% of $34,138,200,000.00 for the project funds equates to a very large dollar amount for APXR of $1,278,475,590.00 funds. THIS IS ABSOLUTELY HUGE!

This is absolutely huge because it positions APXR for a buyout offer to be made for them. Let’s analyze this logic as to why it would not be farfetched. Again, APXR is not in the production business so they are not planning on hanging on to the property because they are looking forward to begin production. Such is not an option unless things change and some major company decides to Joint Venture (JV) with them to be part of the TEAM behind the production for them.

The Outstanding Shares (OS) for APXR had increased from 120,681,870 shares to 175,681,807 shares from November 9, 2007 to date as of today. I think that’s a fair increase of shares considering that since the company was not generating any revenues, they probably used shares to pay salaries to their Officers and Directors from over that 3 year time frame. I think the increase is beyond very fair for such time 3 year time frame.

With APXR now having an Outstanding Shares (OS) amount of 175,681,807 shares and the value of the APXR 3.745% interest being worth $1,278,475,590.00, consider below from the following dollar amounts if a buyout bid was offered to APXR for $1, $2, or $3 dollars…

At $1.00… buyout = $175,681,807.00
At $2.00… buyout = $351,363,614.00
At $3.00… buyout = $527,045,421.00

As you can see, it would be a far discount even if a bid was made to buyout APXR for $1, $2, or $3 per share compared to the $1,278,475,590.00 value of the percentage owned by APXR. Now given all of the thoughts above, let’s think about how wise it would be for Exxon Oil Corporation to buyout APXR to obtain their small percentage amount for either of the prices above, especially since it was filed within the SEC that Exxon Oil Corporation are the ones who coordinated the partners of the project. Actually, from the thoughts shared above, I personally think that it could be considered not a wise move at all if Exxon Oil Corporation didn’t submit a bid offering to buyout APXR for at least $2 per share.

Keep in mind too that it was also filed with the SEC that a consortium of companies participated in the drilling, casing, and testing of the area to a depth of 12,980 feet. This is why APXR and Exxon Oil Corporation knows what they have and was simply waiting on the federal approval that has just taken place. This is why we as APXR shareholders don’t have to wait for the completion of the project as early as 2018 to receive benefits from the approval. A buyout would greatly accelerate such to ”now” as I am sure that many will soon see this in my opinion.

To further add, below is…

…Courtesy of pilliho under Bloomberg:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57921552
http://investing.businessweek.com/research/stocks/snapshot/snapshot_article.asp?ticker=APXR:US

…Courtesy of retireat40 is an Independent Valuation of the well in terms of recoverable oil/gas:
http://investorshub.advfn.com/boards/read_msg.aspx?message_id=57923292
http://www.neb-one.gc.ca/clf-nsi/rthnb/nrthffshr/pblctnrprt/hydrcrbnvlm-eng.pdf

Now read below about the old IR guy being asked to come back on board with APXR on 18 Dec 2010 from the post below with giving his name and number to contact him:
http://ragingbull.quote.com/mboard/boards.cgi?board=APXR&read=1883

I think some took the excitement of the federal approval that investors had as an effort trying to pump APXR, but it was nothing more than investors being excited about the potential that ”greatly” exists here with APXR. Still, I think APXR will transform into something very special in a positive way as this is the risk I am willing to take. I will continue to weather the storm to see what will further materialize.

v/r
Sterling