June 20, 2011(Pink Sheets APXR.PK) Announces The Building of the Mackenzie Valley Gas Pipeline Could Be Announced This Summer
At the two-day Inuvik Petroleum Show in June 2011, former Canadian Prime Minister Joe Clark keynote closing speaker, was extremely positive about building the Mackenzie Valley Gas Pipeline. Joe Clark said that various factors – including political ones – seem to be lining up in the pipeline’s favour. "You have an NEB (National Energy Board) report, you have a remarkable consensus here. You have a majority government in Ottawa that is certainly not hostile to the idea of the pipeline. I think what you have to do is take advantage of this time," Clark said in the event's closing keynote speech.
Delegates to the Inuvik Petroleum Show heard from the Aboriginal Pipeline Group and other companies behind the $16.2-billion Mackenzie Valley Pipeline Arctic Gas Pipeline project, which won approval from the (NEB) National Energy Board in December. The NEB's approval for the project comes with 264 strict conditions to ensure environmental protection and pipeline safety. Exxon Mobil told delegates they have reviewed the conditions and feel that they can meet all of them.
The federal regulatory agency has given proponents until the end of 2013 to decide if they want to build the pipeline. But during a panel discussion at the northern trade show, Aboriginal Pipeline Group president Bob Reid said an announcement could come sooner. "I hope that over the summer months, we'll be able to carry through and finalize our negotiations with the federal government," Reid said, referring to the proponents' bid to secure loan guarantees or other investments from Ottawa. "We hope to have an announcement sometime during the summer to make this project a reality," Reid added.
The Aboriginal Pipeline Group is part of a corporate consortium, led by Calgary-based Imperial Oil, which is spearheading the Mackenzie Valley Gas Pipeline project. Other partners include Exxon Mobil, ConocoPhillips and Royal Dutch Shell.
The 1,200-kilometre Mackenzie Valley pipeline would transport natural gas from the Beaufort Sea through the N.W.T.'s Mackenzie River Valley to a hub in northwestern Alberta, where it would connect with southern markets. Government officials are expected to meet with pipeline proponents in September. If the project goes ahead, construction would take four winters.
APEX RESOURCES GROUP INC. IS A PARTNER WITH IMPERIAL OIL IN BEAUFORT SEA ITIYOK I-27
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 VENTURES58.67312 %
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$1.5+ 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$1.5+ Billion Dollars as calculated below.
ITIYOK I-27 Significant Discovery LeaseOil (US$/Barrell)
ITIYOK I-27 Significant Discovery Lease
Oil (US$/Barrell) $100.0000 Click Here for Current Prices
Gas (US$/ft3) $4.6000
Apex Share of Project 3.7450%
1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 108 $496,800,000.00 $18,605,160.00
Oil (MM STB) 8.976 $897,600,000.00 $33,615,120.00
$1,394,400,000.00 $52,220,280.00
2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (TCF) 1.16 $5,336,000,000.00 $199,833,200.00
Oil (MM STB) 160 $16,000,000,000.00 $599,200,000.00
$21,336,000,000.00 $799,033,200.00
3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES:
Total Dollars Apex Dollars
Gas (Bscf) 625 $2,875,000,000.00 $107,668,750.00
Oil (MM STB) 160 $16,000,000,000.00 $599,200,000.00
$18,875,000,000.00 $706,868,750.00
GRAND TOTAL
Total Dollars Apex Dollars
Gas (Bscf) $8,707,800,000.00 $326,107,110.00
Oil (MM STB) $32,897,600,000.00 $1,232,015,120.00
$41,605,400,000.00 $1,558,122,230.00
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
CONCLUSION
The announcement of the building olf the Mackenzie Valley Gas Pipeline will open up the arctic and increased value of the area. This will generate opportunities for Apex to get greater value for a possible sale on their holdings, and/or opportunities to add new holdings. It will also increase visibility and attention to the Beaufort Sea and MacKenzie Valley area, which will help Public awareness and Investor Relations for Apex’s ability to convey the huge value of the Itiyok I-27 Significant Discovery License.
By the Board of Directors,
John Ray Rask; President
Apex Resources Group Inc.
FOR MORE INFORMATION, PLEASE CALL ROGER REYNOLDS AT ( 780 ) 990 - 0991
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
