Apex Resources Announces Mackenzie Valley Pipeline Hearings to Resume Shortly.

Salt Lake City, Utah – September 26, 2007 – (PR NEWSWIRE) Apex Resources Group, Inc. (OTC BB:APXR) announces Mackenzie Valley Pipeline hearings to resume shortly.

After a Gas Symposium, in Anchorage on September 17, the Mackenzie Valley Pipeline may finally be on track. Hearings by the Joint Review Panel are scheduled for this fall & winter and will be put before Canada’s National Energy Board for action in mid- to late 2008. ExxonMobil Corp. and ConoccoPhillips Co., are now in Ottawa talking with Canadian federal officials about fiscal incentives for the project. A regulation reform conference with federal officials is taking place in Vancouver, BC, the week of September 24, 2007. The 1,200-kilometre Mackenzie Valley Pipeline could be operational in 2014 and would carry gas in the Mackenzie Delta near Inuvik to northern Alberta, with an Alaska pipeline in operation a few years later.

Canadian Northwest Territories Minister the Hon. Brendan Bell called for a joint Canada-U.S. federal task force to expedite Arctic gas pipelines from Canada’s Mackenzie Delta and the Alaska’s North Slope, to focus on solutions to overcome regulatory and other obstacles impeding the pipeline projects. Bell has also been giving speeches & presentation in the U.S. to industry & government groups seeking to “brand” an identity of Arctic gas from both Alaska & Canada as solutions to long term natural gas needs in North America.

Earlier this week, the National Energy Board, a Canadian federal energy regulator, approved TransCanada Corp’s plan to build and operate the Canadian portion of the C$664-million Keystone oil pipeline from northern Alberta to the U.S. markets. This project will be capable of shipping 435,000 barrels of oil a day. The Board said that the benefits of the big energy project, outweighed the possible negatives, such as the impact on aboriginbal communities, domestic industries, crude oil supplies & the environment.

The Conference Board of Canada, warned that the increasing internal energy demand in Canada, is rising and might take a bite out of exports. The province of Alberta demand alone for gas, driven by the oil sands expansion, will grow from 2.9 bcf per day in 2005 to 4.7 bcf per day in 2015. While the province of Ontario government is phasing out coal-fired power generating plants, could increase the demand for another 500 million cubic feet per day for gas-fired facilities by 2015. However, Canada’s supply is projected to be 16.8 bcf per day by 2015, down 1.2 bcf per day from a decade earlier.

Exxon Mobil Corp., which controls Imperial, recently stated that the project is on track as the proponents continue through the lengthy regulatory process. However, the estimated cost of C$16.2-billion could rise. The project will play a key role in meeting the increasing energy needs of Canada & the U.S., will be uplifting for the Northwest Territories. 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.

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 the ongoing hearings and government and industry partnering to expedite the completion process, and the financial commitments, it signals the confidence these companies have in the completion of the Mackenzie Valley Pipeline, and with the increasing demands for energy by both Canada & the U.S. at the current oil & gas market prices, is great news for Apex” John Hickey, Director of  Apex Resources Group Inc. stated.

 

 

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)

 

 $                79.3800

Click Here for Current Prices

Gas (US$/ft3)

 

 $                   6.3600

 

 

Apex Share of Project

3.7450%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES:

 

 

 

 

Total Dollars

Apex Dollars

 

 

Gas (Bscf)

108

 $ 686,880,000.00

 $ 25,723,656.00

 

 

Oil (MM STB)

8.976

 $ 712,514,880.00

 $ 26,683,682.26

 

 

 

 

 $ 1,399,394,880.00

 $ 52,407,338.26

 

 

 

 

 

 

 

 

 

 

 

 

 

2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES:

 

 

 

 

Total Dollars

Apex Dollars

 

 

Gas (TCF)

1.16

 $ 7,377,600,000.00

 $ 276,291,120.00

 

 

Oil (MM STB)

160

 $ 12,700,800,000.00

 $ 475,644,960.00

 

 

 

 

 $ 20,078,400,000.00

 $ 751,936,080.00

 

 

 

 

 

 

 

 

 

 

 

 

 

3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES:

 

 

 

 

Total Dollars

Apex Dollars

 

 

Gas (Bscf)

625

 $ 3,975,000,000.00

 $ 148,863,750.00

 

 

Oil (MM STB)

86

 $ 6,826,680,000.00

 $ 255,659,166.00

 

 

 

 

 $ 10,801,680,000.00

 $ 404,522,916.00

 

 

 

 

 

 

 

 

 

 

 

 

 

GRAND TOTAL

 

 

 

 

 

 

 

Total Dollars

Apex Dollars

 

 

Gas (Bscf)

 

 $ 12,039,480,000.00

 $ 450,878,526.00

 

 

Oil (MM STB)

 

 $ 20,239,994,880.00

 $ 757,987,808.26

 

 

 

 

 $ 32,279,474,880.00

 $ 1,208,866,334.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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.