April 27, 2005 – Good Morning,
The following story from Business Wire is a sample of the kind information our new website will be able to give you when it is launched in mid-June, 2005. This is the kind of information which gives an industry picture of what’s going on in the resource field in our part of the world. We will also want to hear your views on what you hear is going on in the resource field.
Please let me know if this service will be of value to you. I will add you to our growing list of interested people.
Sincerely
AM Crossman
Editor
April 26, 2005 07:30 AM US Eastern Time Zone
Apex Reports on News of House of Representatives Stands by Approval Of Energy Bill to Open Alaskan Wildlife Refuge to Drilling
SALT LAKE CITY–(BUSINESS WIRE)–April 26, 2005–Apex Resources Group Inc. (OTC BB: APXR)
-Saudi’s Plan to Double Investment in Energy Development to Approximately $50 Billion Over Next Five Years-
Apex Resources Group Inc. (OTC BB: APXR), today reported on news that the U.S. House of Representatives approved an energy bill on April 21st that would open an Alaska Wildlife Refuge to oil and gas drilling and provide benefits to energy industries. (Source: Petroleum News).
Concurrently, the Wall Street Journal reported that Saudi Arabia, facing mounting pressure from the U.S. and others to step up the output of oil and gas amid a surge in prices, plans to more than double its investment in energy development to some U.S. $50 billion over the next five years.
The article continued, “U.S. benchmark oil prices averaged U.S. $50 per barrel in the first quarter of this year, nearly twice the 2002 average of U.S. $26.10. On April 22, 2005, benchmark light, sweet crude oil closed at U.S. $54.20 a barrel on the New York Mercantile Exchange, up U.S. $.17. The Nymex benchmark closed at a record U.S. $58.28 on April 4th.”
“The demand for oil and gas is steadily increasing worldwide. The issue is becoming a geopolitical energy crisis, with the U.S. government taking every initiative possible to tap domestic resources at record speed and approach other governments, including Russia, to join forces,” stated John Hickey Director.
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$50.00 per barrel and gas close to US$7.00 per cubic feet, Apex interest in proven reserves would be 45 Million US Dollars and with an additional potential to be drilled out would represent 323 Million US Dollars.
In October 2004 the announcement of the development of the Mackenzie Valley Pipeline became of significant importance to Apex interest in the Beaufort Sea. A substantial portion of the gas to be transmitted from the Beaufort Sea through Alberta will be used to further develop the Alberta Oil Sands (formerly the Alberta Tar Sands).The Alberta Oil Sand reserves that are retrievable today are estimated to be 280-300 billion barrels of oil and total reserves for Alberta including oil not recoverable by using current technology are estimated at 1700-2500 billion barrels. Cyclic steam stimulation (CSS) and steam assisted gravity drainage are currently being used in recovery of oil from the sands. The steam will be generated by the use of the gas to be transmitted by the new pipeline.
Husky Energy Inc. (HSE.TO) announced recently that it will go forward with plans for a new US$10Billion oilsands project and will begin looking for partners after it clears regulatory rules this year. Husky hopes to begin production from its leases by 2009 using the steam assisted gravity drainage mentioned above. It had been reported that initial production will be 50 thousands barrels of oil per day and increase production up to 200 thousands barrels per day in various increase stages. Husky, controlled by Li Ka – shing a Hong Kong billionaire is in talks with the Chinese state-owned oil companies about possible partnerships.
As consumption increases, the need for Northern gas is substantially increased, creating more value for Apex’ holdings.
By the Board of Directors, APEX RESOURCES GROUP INC. Investor Relations: Cynthia DeMonte/DeMonte Associates 575 Madison Avenue – Suite 1006 New York, New York 10022 Tel: 212-605-0525 e-mail: cdemonte@aol.com www.demonte.com 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.
Contacts
DeMonte Associates
Cynthia DeMonte, 212-605-0525
cdemonte@aol.com
