Apex Resources Group Reports MacKenzie Valley Pipeline Clears Major Hurdle
SALT LAKE CITY, Jan. 25 — Apex Resources Group, Inc. (OTC Bulletin Board: APXR) reports MacKenzie Valley pipeline clears major hurdle — Company to explore new business and investment opportunities to maximize shareholder value.
Imperial Oil Ltd. has announced that the Mackenzie Valley natural gas pipeline negotiations with major proponents, finally reached an agreement with the Northwest Territories on socio-economic benefit. Pipeline partners with Imperial Oil Ltd. include ConocoPhillips, Shell Canada Ltd., Exxon-Mobil Canada and the Aboriginal Pipeline Group.
Territory Minister of Industry, Tourism & Investment, called it a big milestone, and said that incrementally it’s a very good sign moving the project ahead. Though not without challenges, Calgary-based Tristone Capital’s research director, Chris Theale, said the pact adds certainty that the pipeline will eventually proceed & that it is a check mark in one of many boxes.
The final cost for 1,200-kilometre pipeline, linking the Beaufort Sea to the Alberta border, has not been determined, due to outstanding aboriginal issues. Previous estimates were valued at $6.5 billion, but Imperial is expected to provide revised estimates before the end of March.
Theale doesn’t think rising costs will be an insurmountable hurdle that makes or breaks the project, and expects the final tab to be in the $10-billion range. He said that “They (Imperial) wouldn’t be putting out a message like this if they weren’t committed to the bigger picture.”
Pius Rolheiser, Imperial spokesman, was more cautious in the company’s assessment, stating, “I wouldn’t characterize it as a positive step forward for the project, but I would certainly characterize it as positive for the project if the project proceeds.”
The accord is similar to existing agreements with the territory’s three operating diamond mines, according to the NWT government.
Territorial government and industry will jointly finance the $21-million fund to provide job training for northerners. For the first ten years, each will contribute $500,000 per year, including the estimated four-year construction period, and $250,000 per year after that. In addition there will be a $500-million federal fund to deal with socio-economic impacts. Current estimates indicate that 2,000 people in the territory are unemployed. This funding will create employment for the eager and willing.
Hearings are expected to conclude in April, followed by a formal report later in the year with final approval expected in 2008 followed by an in-service date of 2012.
With the Mackenzie Pipeline hurdle clearing adds tremendous value to the 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea in Canada, Apex purchased in 1997.
The partners in the Itiyok 1-27 Well are as follows:
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.
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 1-27 (January 23, 2006 prices 13:00 EST: OIL $53.65/B & NG $7.475/cubic ft)
The progress of the Mackenzie Valley Gas pipeline together with the North American need for new gas supplies continuing to increase adds significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.
While Apex Resources maintains its core Oil & Gas business activities, under the guidance of our newly appointed Investor and Public Relations firm Eric David & Sons, Inc, in New York, Apex will be developing a Business Development Plan, focused on investments outside its Oil & Gas Business. “This is giving us a magnificent opportunity to grow our business exponentially through acquisitions and investments in various markets” stated Mr. John Hickey director of Apex Resources
By the Board of Directors,
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.
For further information: Investor Relations: Eric David & Sons, +1-609-529-3671, or [email protected], for Apex Resources Group, Inc. Web Site: http://www.apexresourcesgroup.com