SALT LAKE CITY, Aug. 23, 2004 (PRIMEZONE) -- Publicly traded Apex Resources Group Inc. (OTCBB:APXR) reports on several events.
The price of oil hit a new high of $45.00 (USD) per barrel and may increase. The world's need for energy is increasing. The world uses approximately 81,500,000 barrels of oil per day. With world economics expanding, the need for oil and gas will only increase.
Apex's 3.475% holding in the Ityok 1-27 well in the Beaufort Sea increases in value every day. During 1982 and 1983 a consortium of companies participated in drilling, casing and testing the area to a depth of 12,980 feet. A review of the well data and geological prognosis indicates that the area would contain proven recoverable gas reserves of over 100 Bscf and proven recoverable oil reserves of over 8,900 MSTB. Previous calculations put Apex holdings at over $28,000,000. This was calculated using oil at $35.00 per barrel and gas at $5.00 per thousand cubic feet.
The BB Gayle No. 1 well at Manahuilla Creek in Goliad County, Texas was perforated from 6141 to 6147 feet and tests showed no recoverable gas at that level. The recent dipole sonic log shows gas formations further up at 5310-5334 feet and 5340-5360 feet. It is the engineering recommendation to perforate the zone from 5323 to 5350 feet. It is anticipated this zone will be perforated this week.
Apex has signed the next program which is a multi-well prospect in McMullen County, Texas. The property consists of 947 acres within the field, which includes two currently producing wells that have excellent re-entry potential.
The purpose of the new program is to go down the existing well bore and go out 1500 feet horizontally to find new gas deposits, which should increase gas production.
Operations are expected to proceed before the end of September.
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 as "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.
By the Board of Directors
Apex Resources Group Inc.