Apex Resources Announces Increased Value of its Beaufort Sea Well and Current Status of the Mackenzie Valley Pipeline.

 

Salt Lake City, Utah – September 20, 2007 – (PR NEWSWIRE) Apex Resources Group, Inc. (OTC BB:APXR) announces increased value of its Beaufort Sea Well and current status of the Mackenzie Valley Pipeline.

 

The CEO of ExxonMobil, Rex Tillerson recently told a panel on global energy security that the Mackenzie Valley Pipeline Project is still on the table even though the CA$16.2 Billion price tag could be headed higher. ExxonMobil is the key corporate decision maker in the project, owning 69.6 percent of consortium leader Imperial Oil which has a 34.4 percent interest, while wholly owned ExxonMobil Canada has another 5.2 percent. Despite the regulatory delays and the inflated costs, Mr. Tillerman stated satisfactory progress has been made on the regulatory front and discussions with the Canadian Government are continuing because the project is still alive.

In July, Indian & Northern Affairs Canada released the results of its 2007 Call for Bids in the Beaufort Sea Mackenzie Delta area stating it had accepted three bids with work bonus bids totaling CA$598.1 Million for 1,043,044 acres. One parcel in the package is owned by Imperial Oil Ventures Limited (50%)and ExxonMobil Canada Properties (50%) with a  work expenditure bid of CA$585.0 Million.

With a commitment of this size, it signals the confidence there companies have in the completion of the Mackenzie Valley Pipeline. This is great news for Apex. At current oil & gas market prices, the Apex 3.745% working interest in the   Itiyok 1-27 well in the Beaufort Sea is valued as follows:

 

ITIYOK I-27 Significant Discovery Lease

 

 

 

 

 

Oil (US$/Barrell)

 

 $                81.0000

 

Gas (US$/ft3)

 

 $                   6.5700

 

Apex Share of Project

3.7450%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

108

 $ 709,560,000.00

 $ 26,573,022.00

 

Oil (MM STB)

8.976

 $ 727,056,000.00

 $ 27,228,247.20

 

 

 

 $ 1,436,616,000.00

 $ 53,801,269.20

 

 

 

 

 

 

 

 

 

 

2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (TCF)

1.16

 $ 7,621,200,000.00

 $         285,413,940.00

 

Oil (MM STB)

160

 $ 12,960,000,000.00

 $ 485,352,000.00

 

 

 

 $ 20,581,200,000.00

 $ 770,765,940.00

 

 

 

 

 

 

 

 

 

 

3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES:

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

625

 $ 4,106,250,000.00

 $ 153,779,062.50

 

Oil (MM STB)

86

 $ 6,966,000,000.00

 $ 260,876,700.00

 

 

 

 $ 11,072,250,000.00

 $ 414,655,762.50

 

 

 

 

 

 

 

 

 

 

GRAND TOTAL

 

 

 

 

 

 

Total Dollars

Apex Dollars

 

Gas (Bscf)

 

 $ 12,437,010,000.00

 $ 465,766,024.50

 

Oil (MM STB)

 

 $ 20,653,056,000.00

 $ 773,456,947.20

 

 

 

 $ 33,090,066,000.00

 $ 1,239,222,971.70

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The partners in the Itiyok 1-27 Well are as follows:


IMPERIAL OIL RESOURCES VENTURES 58.67312%

DEVON ARL CORPORATION 14.72%

PETRO - CANADA 14.20%

APEX RESOURCES GROUP INC. 3.745%

CONNOCOPHILLIPS CANADA RESOURCES CORP. 3.003%

CANALANDS RESOURCES 2.255734%

CANADIAN NATURAL RESOURCES LIMITED 1.23445%

CANADIAN FOREST OIL LTD. 1.084348%

677862 ALBERTA LTD 1.084348%

 

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 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, as per Citadel Engineering report, have been published in previous news releases.

 

The increased interest in the Beaufort Sea Reserves and completion of the Mackenzie Valley Pipeline coupled with the North American need for fuel continuing to increase, adds 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.

 

Investor Relations: 

Eric David & Sons

Ste # 501- 320

10 Schalks Crossing Road

Plainsboro, NJ 08536

Phone: (609) 529-3671

Website: ericdavid.com

Email: steveweiss@ericdavid.com

 

Apex Resources Group, Inc.

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.