Drilling in the Beaufort Sea Opens New Frontier for Oil & Gas Industry
Apex Resources Group, Inc. reports progress on the Beaufort Sea Exploration as Shell Oil Company spuds a dozen wells in the Beaufort Sea opening up a new frontier for the oil & gas industry. Apex Resources Group Inc. owns 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea.
For more than a decade, Shell Oil Company has been preparing one of its biggest explorations in the Arctic Ocean, off the Alaska Coast, which could very well become a new frontier for the oil & gas industry. Shell is expected to start a controversial 3-year drilling program in August. It is expected to start drilling a dozen wells in the Beaufort sea about 30 miles off the Alaska coast.
Some industry experts have speculated it could spark a rush into one of the biggest untapped energy reserves. It is believed that the Beaufort Sea contains eight billion barrels of oil and nearly 30 trillion cubic feet of gas. The US Minerals Management Service gave Shell Oil Company the green light for the venture in February, despite fierce opposition from local communities and environmentalists.
BP already operates the North Star field on the coastline of Alaska's North Slope (Shell Oil Company's exploration activity is 20 to 30 miles closer to the Arctic fringe); if drilling proves successful it is expected that Repsol of Spain, Norsk Hydro of Norway and Conoco-Phillips of the US will follow Shell.
While there has been drilling and exploration in the Arctic, some experts claim that 25 percent of the world's undiscovered hydrocarbons sit in the Arctic. Even if that is optimistic, according to Malcolm Brinded, Shell Oil Company's chief executive of exploration and production, "If it's half right, then it's worth exploring because it has the right ingredients to be a good energy play and the world needs some new energy plays."
Shell Oil Company plans to start with the Beaufort prospect called Sivulliq, which contains a known oil pool, estimated to contain 100 million to 200 million barrels of technically recoverable oil, which was formerly known as the Hammerhead, and drilled by Unocal in 1986 & 1986. However, the oil pool has not been fully delineated.
With recent near record oil & gas prices, and with new and improved technologies, after Shell Oil Company and other major left the region in the 1990's, the huge potential of Alaska's Arctic waters is now economical to drilling.
Apex Resources Group Inc. owns 3.745% working interest in the Itiyok 1-27 Well in the Beaufort Sea.
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 $85 million. A review of Well data and geological prognosis indicates that a 640 acre area would contain proven recoverable gas reserves of 108 Bscf and proven recoverable oil reserves of 8,976 MSTB, with Apex Resources Group Inc. 3.745% working interest net reserves of 4.04 Bscf and 336 MSTB.
Seismic data indicates a structure closure of approximately 40 square KM with a gross potential reserve of 1.16 TCF and 160 MMSTB (Apex 3.745% working interest net - 34 Bscf and 4.7 MMSTB). The lands in which the Apex Resources Group Inc. owns an interest comprised of 21.54 square KM containing gross potential reserves of 625 Bscf of gas and 86 MMSTB of oil (Apex 3.745% working interest net - 23.4 Bscf of gas and 3.2 MMSTB of oil). Values of proven, probable and possible gas and oil reserves, of Apex 3.745 % working interests, as per Citadel Engineering report, have been published in previous news releases.
At current oil & gas market prices, the Apex 3.745% working interest in the Itiyok 1-27 well in the Beaufort Sea is valued as follows:
ITIYOK I-27 Significant Discovery Lease Oil (US$/Barrel) $75.0000 Gas (US$/ft3) $8.2000 Apex Share of Project 3.7450% 1) ITIYOK 640 ACRE PROVEN GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (Bscf) 108 $885,600,000.00 $33,165,720.00 Oil (MM STB) 8.976 $673,200,000.00 $25,211,340.00 $1,558,800,000.00 $58,377,060.00 2) ITIYOK 40KM2 PROBABLE GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (TCF) 1.16 $9,512,000,000.00 $356,224,400.00 Oil (MM STB) 160 $12,000,000,000.00 $449,400,000.00 $21,512,000,000.00 $805,624,400.00 3) ITIYOK 21.54KM2 POSSIBLE GAS & OIL RESERVES: Total Dollars Apex Dollars Gas (Bscf) 625 $5,125,000,000.00 $191,931,250.00 Oil (MM STB) 160 $12,000,000,000.00 $449,400,000.00 $17,125,000,000.00 $641,331,250.00 GRAND TOTAL Total Dollars Apex Dollars Gas (Bscf) $15,522,600,000.00 $581,321,370.00 Oil (MM STB) $24,673,200,000.00 $924,011,340.00 $40,195,800,000.00 $1,505,332,710.00 NOTES: Bscf Gas = Billion standard cubic feet of Gas TCF Gas = Trillion Cubic Feet of Gas MM STB Oil = Million Stock Tank Barrels of OilThe recent progress of the Shell Oil Company planning to drill in the Beaufort Sea, with the North American needs for fuel continuing to increase, adds significant value to Apex Resources Group Inc. 3.745% working interest in the Itiyok 1-27 Well.
Operates 30 Offshore Rigs
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Company: Apex Resources more info
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