Oil and Gas Plays

[rrufff]

APXR .085 x .091 speculative play on the MacKenzie pipeline Northern Canada. 93 million o/s and estimated < 65 million float.

Apex Reports Revised Value Estimates for Beaufort Sea Well
PR Newswire - November 23, 2005 06:00

SALT LAKE CITY, Nov 23, 2005 /PRNewswire-FirstCall via COMTEX/ -- Apex Resources Group Inc. (OTC Bulletin Board: APXR), today reports revised value estimates for Beaufort Sea Well.

On October 25, 2005 Citadel Engineering of Calgary released the report to reflect the current gas and oil prices. 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$58.68 per barrel and gas close to US$11.50 per cubic feet, Apex interest in proven reserves would be $66.176 Million US Dollars and with an additional potential to be drilled out would represent $1.189 Billion US Dollars.

This will be a tremendous asset to Apex if and when the Mackenzie Valley Pipeline is completed.

The following proven, probable and possible gas and oil reserves are taken from the Engineering report.

Without a decision on the pipeline Apex 3.745% of the Itiyok I-27 Well is reduced at US $2,895,000 for proven reserves. After a decision to move forward with the pipeline this value will increase significantly.

Itiyok I-27

Part 1 -- Proven Gas & Oil Reserves: (640 acre area)

Total: -- A) 108 Bscf - Gas
B) 8.976 MM STB - Oil

Apex Working Interest - (3.745%)

A) 4.04 Bscf - Gas @ US$11.50/ft3 = US $46.46 Million (Gas)
B) 336,000 STB - Oil @ US$58.68/B = US$19.716 Million (Oil)
US$66.176 Million (Gas & Oil)

Part 2 -- Probable Gas & Oil Reserves: (40KM2)

Total: -- A) 1.16 TCF - Gas
B) 160 MM STB - Oil

Apex Working Interest - (3.745%)

A) 34 Bscf - Gas @ US$11.50/ft3 = US$391.000 Million (Gas)
B) 4.7 MM STB - Oil @ US58.68/B = US$275.796 Million (Oil)
US$666.796 Million (Gas & Oil)

Part 3 -- Possible Gas & Oil Reserves: (21.54 KM2)

Total: -- A) 625 Bscf - Gas
B) 86 MM STB - Oil

Apex Working Interest - (3.745%)

A) 23.4 Bscf - Gas @ US$11.50/ft3 = US$269.100 Million (Gas)
B) 3.2 MM STB - Oil @ US58.68/B = US$187.776 Million (Oil)
US$456.876 Million(Gas & Oil)

Total of All 3 US $1.189 Billion Gas & Oil


About The Mackenzie Valley Pipeline

Reports out of Calgary indicate that the consortium behind the CDN$7-Billion Mackenzie gas pipeline are on the verge of making deals with Ottawa and aboriginal communities, paving the way for key public hearings to begin on the massive venture.

After months of negotiations, a consortium of oil companies headed by Imperial Oil Ltd. was close yesterday to finalizing a so-called "letter of comfort" with the federal government that would lay out fiscal terms for the project in broad terms, sources said.

Three aboriginal communities along the pipeline route were scheduled to hold meetings last week to ratify access and benefits agreements.

"I am very optimistic that things seem to be coming together," said Brendan Bell, Energy Minister for the Northwest Territories, after meeting with Cabinet ministers in Ottawa. "We are very hopeful that Imperial will come out with a very strong positive announcement in the coming days and weeks."

The consortium of Imperial Oil Ltd., and partners Shell Canada Ltd., ConocoPhillips and the Aboriginal Pipeline Group, wanted to secure the deals before moving forward with lengthy public hearings that would bring the project back on track.

Negotiators have been working frantically so the agreements could be in place tomorrow, allowing Imperial to meet a deadline imposed by the National Energy Board. The federal regulator asked project backers to let it know by Nov. 18 whether they were ready to move forward, so it could hold pre-hearing conferences before the end of the year. Eight to ten months of hearings would then start in the New Year in of locations across the Northwest Territories and in Alberta. Regulators would then rule on whether the project can proceed.

The 1,220-kilometer pipeline would move to market by the turn of the decade badly needed natural in the Mackenzie Delta and fuel oil and gas in Canada's Arctic.

Three Sahtu communities -- Tulita, Fort Good Hope and Deline -- have reached agreements with Imperial on allowing the oil companies access to their lands in exchange for benefits. Negotiations are continuing with other groups affected by the project -- the Inuvialuit, Gwich'in and Deh Cho.

Pius Rolheiser, spokesman for Imperial, said it was premature to say whether backers would move forward with public hearings without having all aboriginal agreements in place.

"Our intent would be to have benefits and access agreements in place or a clear path forward to achieving them," he said. "We are in discussions with all communities and we are working as hard as we can."

The potential is significant. Devon Energy Corp. next month will start drilling in the Beaufort Sea and hopes to hit a target as large as the biggest field in the nearby Mackenzie Delta, a discovery controlled by Imperial.

By the Board of Directors,

APEX RESOURCES GROUP INC.
Investor Relations: Roger Reynolds
136 East South Temple, Suite 1600
Salt Lake City, Utah 84111 USA
TEL: [phone]

Web Site: 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.

SOURCE Apex Resources Group Inc.

Roger Reynolds of Apex Resources Group Inc., [phone]

http://www.prnewswire.com

Copyright (C) 2005 PR Newswire. All rights reserved.