Apex has engaged the services of Lou MacEachern of Calgary, Alberta to assist in locating and introducing an appropriate purchaser or joint venture partner with respect to the Divestiture by Apex of its working interest in the natural gas and Petroleum Well Itiyok I-27 in the Beaufort Sea.
In June 1997, Apex Resources Group purchased a 3.745% working interest in the Beaufort Sea Area know as the Itiyok I-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 40Km(2) with gross potential reserve of 1.16 TCF and 160 MMSTB (working interest net -- 34 Bscf and 4.7 MMSTB.) However, as noted above, no immediate plans have been formulated to perform further operations and thus, it is not possible to prepare an economic appraisal of the reserves delineated to date. The lands in which the Company owns and interest comprise 21.54 Km(2) containing gross potential reserves of 625 Bscf of gas and 86 MMSTB oil (working interest 23.4 Bscf of gas and 3.2 MMSTB of oil.)"
With oil at approximately US$67.00 per barrel and gas close to US$10.00 per thousand cubic feet, Apex interest in proven reserves would be US$62.9 Million Dollars and with probable additional potential to be drilled out would represent US$654.9 Million Dollars and additional possible gas and oil reserves of US$448.4 Million Dollars for a total of US$1.166 Billion Dollars.
Itiyok I-27 Part 1 - Proven Gas & Oil Reserves: (640 acre area) Total: -- A) 108 Bscf -- Gas B) 8.976 MM STB -- Oil Apex Working Interest -- (3.745%) A) 4.04 Bscf -- Gas @ US$10.00/ft(3) = US $40.400 Million (Gas) B) 336,000 STB -- Oil @ US$67.00/B = US$22.512Million (Oil) US$62.912 Million (Gas & Oil) Part 2 -- Probable Gas & Oil Reserves: (40KM(2)) Total: -- A) 1.16 TCF -- Gas B) 160 MM STB -- Oil Apex Working Interest -- (3.745%) A) 34 Bscf -- Gas @ US$10.00/ ft(3) = US$340.000 Million (Gas) B) 4.7 MM STB -- Oil @ US67.00/B = US$314.900 Million (Oil) US$654.900 Million (Gas & Oil) Part 3 -- Possible Gas & Oil Reserves: (21.54 KM(2)) Total: -- A) 625 Bscf -- Gas B) 86 MM STB -- Oil Apex Working Interest -- (3.745%) A) 23.4 Bscf -- Gas @US$10.00/ft(3) = US$234.000 Million (Gas) B) 3.2 MM STB -- Oil @US67.00/B = US$214.400 Million (Oil) US$448.400 Million(Gas & Oil) Total of All 3 US $1.166.212 Billion Gas & Oil
Apex Management feels a divestiture or Joint Venture at this time is the logical direction for the growth of the Company and an opportunity to create a tremendous increase in shareholder value.
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