Replies to post #4491 on Apex Resources Inc (SLMLF)

[fishin100]

Beaufort Sea and Mackenzie Delta News
Bulletin
Volume 6, Number 1
February 1999

Beaufort Sea and Mackenzie Delta Open for Posting
The Minister of Indian Affairs and Northern Development is inviting industry to select exploration acreage over 105 million hectares (407 000 square miles) in the Mackenzie Delta, Beaufort Sea and western Arctic Islands.
The Mackenzie Delta-Beaufort Sea basin has an excellent discovery record with 53 discoveries, including one major oil and gas field at Amauligak,three major gas fields (Taglu, Parsons and Issungnak) and one major oil discovery (Adlartok). A 1994 resource assessment by the Geological Survey of Canada (GSC) suggested that the prospects for doubling the number of discoveries in this size range are good, in both onshore and offshore exploration plays. (A major field contains oil resources from 100 to 500 million barrels / 15 to 80 million cubic metres or gas resources of 1 to 5 trillion cubic feet / 28 to 142 billion cubic metres).

Amauligak
Discovered in 1984, Amauligak is the largest oil and gas field in the Beaufort Sea. It is located 75 kilometres northwest of Tuktoyaktuk in a water depth of 30 metres. At this time, there are no formal plans for development of Amauligak.


The following below is my recap on what I have found on line:
THE ITIYOK I27 WELL IS THE CLOSET OIL WELL TO THE AMAULIGAK (aprox. 12 miles away) and is part of the TARSIUT-AMAULIGAK FAULT ZONE....the largest oil reserve in the Beaufort Sea. I believe all estimates to date are low and were estimated in the 1980's. A larger windfall then expected may come...and the Mackenzie pipeline will run right to the shoreline of this field! APXR owns not only 3.745% of the Itiyok I27 well but 3.745% of the entire significant lease #55 consisting of 640 acres located next to the largest oilfield in the Beaufort Sea! True value????

[fishin100]

Caisson Structures in the Beaufort Sea
G.W. Timco and M.E. Johnston CHC-TR-003 Page 18
Significant oil and gas discoveries were made in the Beaufort Sea (see Figure 8),
including the Amauligak oil reservoir. To date, these reserves have not been developed.
Current discovered reserves for this region are 12 TCF gas, and 1.6 billion Bbls of oil.
During the drilling of the Amauligak well, 320,000 barrels of oil were shipped to Japan in
the tanker "Gulf Beaufort", making it the first major shipment of crude oil from the
Canadian Beaufort Sea.
Figure 8: Map showing the gas and oil discoveries in the Canadian Beaufort Sea
(after Jahns 1985).

(Sorry, the maps would not paste)

[fishin100]

Caisson Structures in the Beaufort Sea
G.W. Timco and M.E. Johnston CHC-TR-003 Page 16
Table 2 (cont’d): Drilling Activity in the Canadian Beaufort Sea
Year Well Name Operator Drill Vessel Water Depth (m) Spud Date Rig Release
1982 Issugnak O -61 Esso Sacrificial beach 36.5 82/02/06 80/07/08
West Atkinson L-17 Esso Sandbag retained 7.0 82/05/01 82/06/25
Tarsuit N-44A Gulf Caisson-concrete 19.2 82/06/18 82/09/19
Kiggavik A-43 gulf Drill ship 27.4 82/08/20 82/10/17
Orvilruk O-03 Dome/Superior Drill Ship 59.9 82/08/30 82/10/25
Aiverk I-45 Dome Drill ship 50.3 82/10/07 82/10/23
Aiverk 2I-45 Dome Drill ship 50.3 82/11/03 84/10/11
Itiyok I-27 Esso Sacrificial beach 14.0 82/11/05 83/05/02Uviluk P-66 Dome/Texaco SSDC 30.0 82/11/10 83/05/21

The Itiyok I27 well is REAL!

[fishin100]

NATIONAL ENERGY BOARD
PROBABILISTIC ESTIMATE OF HYDROCARBON
VOLUMES IN THE MACKENZIE DELTA AND
BEAUFORT SEA DISCOVERIES
Introduction
This study was undertaken by the National Energy Board (Board), for the purpose
of providing a comprehensive estimate of the discovered resources in the Mackenzie
Delta-Beaufort Sea region from 69o N to 71o N. The 53 discoveries (Figure 1); 20 gas, 13
oil and 20 oil and gas were made between 1970 and 1989 and are divided roughly
equally between the Beaufort Sea and the near to onshore Mackenzie Delta. Significant
Discovery status, as defined by the Canadian Petroleum Resources Act, was given to the
field if at least one zone in the discovery well demonstrated sustainable flow. The largest
onshore gas field is Taglu, discovered in 1971, with an estimated marketable gas resource
of 58.6 109m3 (2.07 Tcf). The largest offshore field is Amauligak, discovered in 1984,
with an estimated recoverable oil resource of 37.3 106m3 (235 million bbl). The best
current estimate of the total discovered resource in the basin is; 161 106m3 (1.01 billion
bbl) of recoverable oil and 255 109m3 (9.00 Tcf) of marketable gas.At present, there is no development of the discoveries within the Mackenzie Delta-
Beaufort Sea region. However, in 1997, the Board approved a gas development plan for
the Ikhil gas field which is estimated by the Board to contain, at best current estimate,
735 106m3 (25.9 Bcf) of marketable gas. The field is currently being evaluated by the
operator. In 1989, a gas export application for the export of gas to the United States
through the Central Mackenzie Valley, by applicants, Esso Resources Canada Limited,
Gulf Canada Resources Limited and Shell Canada Limited was approved by the Board
after the Board undertook an estimate of the gas resources within the onshore and
offshore discovered gas fields; Taglu, Tuk, Niglintgak, Kumak, Mallik, Parsons, Ya Ya,
Amauligak, Hansen, Issungnak, Kadluk, Netserk, Itiyok and Arnak in order to ensure
adequate gas supply. In its Reasons for Decision in GH-10-88, the Board generally
agreed with the gas export licence applicants' estimates of gas supply, but noted that
extensive reliance was placed on the applicants' submitted geophysical data and interpretations.
The Board's estimates of gas resources for these fields, in this current study,
are lower than those stated in GH-10-88. These differences are due in large part to the
recently acquired three dimensional seismic surveys over Taglu, Niglintgak and Kumak
Mackenzie Delta and Beaufort Sea Discoveries 1
and also to the more conservative estimate of reservoir parameters, by the Board, following
an in-depth analysis. At this time none of these fields are considered to contain
initial reserves.
This study represents the first, comprehensive, probabilistic resource estimate of
the discovered resources for the Beaufort-Mackenzie Basin. An estimate of the total
discovered resources, was reported by the Geological Survey of Canada in 1988 following
consultations with Canada Oil and Gas Lands Administration. However, since 1988
more seismic data has been acquired and publicly released. These data, along with four
new discoveries - Kingark J-54, Nipterk P-32, South Isserk I-15 and Unipkat N-12 have
been integrated into the current study. All discovered fields are therefore now included
in the overall resource volume.

[fishin100]

I too will be holding....don't plan to miss out!

[fishin100]

Never give up!
MacKenzie Gas Pipeline Approved By Canada's Energy Regulator
After a six-year review, Canada's National Energy Board Thursday approved plans to build a 740-mile pipeline to ship natural gas from the Arctic to points southward.

The decision removes a major hurdle for the C$16.2 billion ($16.1 billion) MacKenzie Gas Project, which proposes to bring natural gas from fields in Canada's Northwest Territories bordering the Arctic Ocean to other pipelines and refineries that serve the North American market.

Engineering and field work on the project has been frozen since 2007 as the regulatory-review process dragged on. The pipeline--the farthest along of three proposals to ship natural gas from the far north--would be able to carry as much as 1.2 billion cubic feet per day, and would go into service by 2018 at the earliest.

But even as project partners led by Calgary-based Imperial Oil Ltd. (IMO, IMO.T) proceed to the next stage of development, some industry watchers worry the project's economics no longer work out due to a recent glut of natural gas pulled from rocks known as shale. That glut has pushed natural-gas prices to just over $4 per million British thermal units--well below the $6 to $7 price range that project partners estimate they need to make the pipeline feasible.

Canada's energy regulator approved the project even as it acknowledged the steep drop in natural-gas prices since it was first proposed.

"We do not agree with those who say these are reasons to deny the project," it said in a lengthy report explaining its decision. "It is up to the companies to decide whether the project makes economic sense."
It added, however, that construction must begin by 2015--Imperial Oil had asked for a 2016 deadline, and said 2014 is the earliest it could begin construction.

Imperial Oil spokesman Pius Rolheiser said his company remains committed to pursuing the project, on the grounds that it believes demand for natural gas will grow and supply from other sources will decline.
However, Rolheiser said Imperial Oil won't be able to make an investment decision until the end of 2013, and needs to work out an agreement on taxes and royalties with the Canadian government--it would also need to re-staff the project and file for more than 6,000 required permits. Imperial Oil and its partners have already spent around C$750 million on preliminary engineering studies and regulatory matters.

"We've known from the outset that this is a complex project," Rolheiser said. "The central challenge has always been and remains that gas from the Mackenzie Delta needs to be competitive on a supply-cost basis with other sources of supply."

Gregory Ebel, chief executive of Spectra Energy Corp. (SE), a Houston, Texas-based company that operates Canadian natural-gas pipelines in British Columbia, said the Mackenzie project is "a very, very tough project given how far it is from market."

"The dynamics in the market are now significantly different from what they once were," said Greg Stringham, vice president for markets at the Canadian Association of Petroleum Producers. "It's really a challenging time for all natural gas now."

The MacKenzie Gas Project partners--which also include an aboriginal peoples' group as well as the Canadian arms of ConocoPhillips (COP), Royal Dutch Shell PLC (RDSA, RDSA.LN) and Exxon Mobil Corp. (XOM)--are counting on tightening natural-gas supplies and rising prices during the next several years to put their plans back on track.

"It's not the natural-gas price now--it's what it is when these wells come into service" in 2018, says Bob Reid, president of the Aboriginal Pipeline Group, which has a one-third stake in the pipeline and represents the interests of three native groups over whose land the pipeline will pass. "I'm confident we will make a decision to construct."
Meanwhile, two other natural-gas pipeline projects are also competing to bring another source of natural gas south, from Alaska's North Shore. TransCanada Corp. (TRP, TRP.T) and Exxon Mobil are asking natural-gas producers to support their project to ship up to 4.5 billion cubic feet per day over the rival Denali pipeline project supported by BP PLC (BP, BP.LN) and ConocoPhillips, and which is expected to be completed by the end of the decade.

-By Phred Dvorak and Edward Welsch, Dow Jones Newswires; 403-229-9095; [e-mail]

[fishin100]

Mackenzie Pipeline: A nation-builder
Comments Twitter LinkedIn Digg Buzz Email .Diane Francis December 18, 2010 – 8:40 am

In 1968, Alaska’s oil fields were discovered and, within nine years, an oil pipeline 800 miles long had been completed through difficult and mountainous terrain bringing oil to markets. Aboriginal claims were quickly settled with a large financial settlement brokered by Washington.
More recently, the US Congress approved loan guarantees to build a natural gas pipeline in Alaska, between US$20 billion and US$30 billion, as a “national priority”.
By contrast, one of the most promising oil discoveries anywhere, called Amauligak in the Beaufort Sea, had flow rates in the mid-1980s that were as impressive as Alaska’s initial wells, but has been orphaned due to government squabbling.
Finally, this week the Mackenzie Valley Pipeline proposal to bring natural gas from Canada’s Arctic to markets was approved by the National Energy Board after nearly 30 years’ of federal government dithering.
The approval was applauded in the North, but more obstacles remain: Federal Cabinet approval, 264 more conditions must be met and negotiations must be concluded with the Federal Government to backstop up to $2.57 billion in loans so that Aboriginals can participate. The private sector oil partners, led by Imperial Oil Limited, will finance the other $13.4 billion in development costs.

Still more work
True to form, naysayers, competitors and media claimed it was too little, too late without doing independent homework. Some claimed discoveries of shale gas will render Mackenzie and Alaska unneeded.
That is totally untrue, according to Ziff Energy, a leading energy consultancy. Its analysis of North America’s market was that the Mackenzie, Alaska, producible shale gas and conventional gas deposits would all needed and viable in future.
For instance, Ziff said that Canadian conventional gas reserves are declining by up to 20% per year which requires the replacement of up to 4 billion cubic feet per day of new supplies. That’s equivalent to the total production from three Mackenzie Valley Pipelines. Decline rates are similar south of the border and will require at least ten times’ more gas.
Power generation is also starting to switch from coal or oil to natural gas for environmental reasons. In June 2010, this was mandated in a Canadian Federal Government policy which will phase out 33 inefficient coal-fired plants in Canada whose economic life will end by 2025. Their licenses will not be renewed unless their emissions are reduced dramatically to the same level as gas-fired plants. The amount of gas needed to replace these 33 dirty coal plants totals 1.2 billion cubic feet per day, or the entire annual output of the Mackenzie Valley Pipeline.
Similarly, almost half of American power is generated from dirty coal and the replacement of these plants by natural gas would require 28 billion cubic feet more natural gas per day, more than today’s total consumption of 22.7 billion cubic feet daily.

The North another Norway
Added to the need for clean, natural gas is the opportunity that this pipeline will turn the Mackenzie Delta and Beaufort Sea area into the world’s next Norway whose large-scale oil and gas production is wholly in its high Arctic. This is because building a pipeline there will spark industrialization and exploration in the region. The potential is known there, but cannot be developed without infrastructure.
Put another way, if this pipeline is not built Canada will have left stranded a proven, world-class energy asset of six trillion cubic feet of gas which also includes 49 million barrels of valuable natural gas liquids such as butane and ethane which are essential to Alberta’s petrochemical future.
This is not about money alone. This is about nation-building.
If Canada does not step up to the plate and make this happen, then its North will be a write-off and its Aboriginals left without any chance of prosperity. The United States has pledged massive loan guarantees for Alaska and appointed a White House official who is facilitating and expediting the project. Canada cannot ignore this.
Giant, long-term projects such as this are risky to be sure. But imagine how horrible Canada’s economy would be if governments had not backstopped Syncrude in 1978 even though its $32-a-barrel costs were totally uneconomic? Or if Hibernia hadn’t been backstopped in the 1980s despite the fact that no one had ever produced oil 200 miles offshore in hostile seas where the Titanic sank?

Conclusion
The Mackenzie Valley Pipeline is another nation-building project with many added advantages: Needed energy, clean energy, 100,000 jobs across Canada, billions in royalties, self sufficiency for the proud people of the North and an economic upside that is unimaginable.
Its time has come.
.Posted in: Diane Francis Tags: arctic, Energy, Mackenzie Valley Gas Pipeline .