Polar Petroleum Corp. Provides Update on Alaskan Oil and Gas Industry and
Russian Giant Rosneft's Move to Enter the North Slope
ANCHORAGE, Alaska, May 13, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp.
(OTCBB:POLR) (herein after "Polar Petroleum," "Polar" and/or "the Company") is
pleased to provide an update on Alaska's oil and gas industry, particularly
regarding the Russian oil and natural gas giant Rosneft's move to enter the
state's North Slope area.
Rosneft is traded on the Moscow Exchange (ROSN) and the London Stock Exchange
(ROSN), and became the world's largest publicly traded oil company in March
2013 when it purchased TNK-BP in a $55 billion deal that gives BP a near 20%
stake in Rosneft. TNK-BP pumps roughly 1.5 million barrels of oil per day. The
new Rosneft will produce ~4.6 million barrels of crude oil per day, while
representing 28 billion barrels of oil reserves.
Recently, ExxonMobil and Rosneft announced the potential participation by
either Rosneft, or an affiliate, in the Point Thomson project on Alaska's
North Slope. The deal gives Rosneft the option to buy a 25 percent interest
in ExxonMobil's holdings in the Point Thomson field, which is estimated to
contain nearly a quarter of the recoverable natural gas on Alaska's North
Point Thomson is believed to contain Alaska's second largest natural gas
reservoirs with approximately 8 trillion cubic feet in reserves. Point Thomson
could feasibly keep the proposed North Slope natural gas pipeline full for
approximately five years.
To the west, meanwhile, Prudhoe Bay is North America's largest oil field and
one of America's greatest gas reservoirs. Combining both the Point Thomson and
Prudhoe Bay natural gas supplies, there is enough gas to keep the pipeline
full for approximately 15 years. In terms of domestic energy security, Point
Thomson and Prudhoe's core gas reserves could flow 4.5 billion cubic feet of
natural gas daily for Lower 48 markets, should the need arise.
Polar Petroleum's Hemi Springs Project is spread along the southwestern border
of the producing Prudhoe Bay Unit.
Daniel Walker, Polar Petroleum's President & CEO, commented: "It's well known
how rich with potential Point Thomson is, and now it appears that both Rosneft
and ExxonMobil are very serious about making the reservoir productive.
Rosneft's capital and interest, along with ExxonMobil's technical ability,
should push the entire region one step closer to bringing Alaska's natural gas
Rosneft has expressed interest in becoming involved with the potentially
lucrative North American gas market that is set to deliver liquefied natural
gas (LNG) to other markets such as Asia, and for the acquisition of
technological advancements that will help the development of their own Russian
properties within the Arctic circle.
According to Ernst Young's senior strategic analyst in oil and gas practice,
Foster Mellen, the benefits of the agreement reach industry wide. "The
agreement is significant for the industry, it's kind of a win-win situation,"
says Mellen. "It opens up to the industry the last potential resources, but at
the same time it provides Rosneft the expertise and technology from a
well-established company while ExxonMobil has access to a region that Western
companies aren't privy to."
Should the partnership lead to enhanced development of the Point Thomson
reservoir, delivery of the natural gas will depend on the approval and
construction of the proposed pipeline. The estimated cost for the pipeline
project is $65 billion, and would run 800 miles from Alaska's Arctic to a port
in the state's Southcentral region. Once liquefied, the natural gas would be
exported in tankers to primary markets in Asia where prices are higher than in
The potential the proposed pipeline would bring to gas producers in the region
is large, whereas the further development of Point Thomson would provide a
vital supply for the proposed pipeline from Alaska's North Slope to markets.
Major producers such as BP, ConocoPhillips, and ExxonMobil itself, along with
the pipeline company TransCanada Corp., have already committed a team of more
than 200 people that are working on the Alaska pipeline project.
With the infrastructure in place, the potential for other fields and new
discoveries in the region could potentially keep the pipeline full for decades
FOR ADDITIONAL INFORMATION
Read more about Alaska's natural gas production potential within the North
Slope on Polar Petroleum's official website, as well as further information
about the Company and its latest news releases at http://www.polarpetro.com.
ABOUT POLAR PETROLEUM CORP.
Polar Petroleum (OTCBB:POLR) is an independent American oil and gas company
based in Anchorage, AK. The Company is focused on securing domestic energy
solutions through the exploration, development and production of oil and
natural gas in Alaska's proven North Slope region: home to the 2 largest oil
fields in North America, over 10 other producing fields, and established
infrastructure. The Company's Franklin Bluffs Project overlies the 3 source
rocks thought to represent potential unconventional shale oil on the North
Slope. Test drilling in the vicinity has met expectations for finding oil in
the source rocks.* The Company's Hemi Springs Project is estimated to
potentially represent recoverable petroleum reserves of ~558 million barrels
Polar's projects are strategically positioned between many of the major
players of the oil and gas industry and the necessary infrastructure to bring
hydrocarbons to market.
* Petroleum News, Sept. 23, 2012; ** Geologic Study and Initial Evaluation of
the Potential Petroleum Reserves of the Hemi Springs Project, North Slope,
Alaska (D. T. Gross & D. W. Brizzolara, Mar. 25, 2013).
ON BEHALF OF THE BOARD OF DIRECTORS,
Polar Petroleum Corp.
Daniel Walker, President & CEO
4300 B Street
Anchorage, AK 99503
Toll Free: 1-888-765-2773
This press release may include certain statements that are forward-looking in
nature and that involve a number of uncertainties and risks. Such
forward-looking statements are within the meaning of that term in Section 27A
of the Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. The forward-looking statements in this press
release are based on Polar Petroleum Corp.'s current expectations and
projections regarding future events, which are based on currently available
information. The forward-looking statements in this press release may also
include statements relating to Polar Petroleum Corp.'s anticipated new
developments, business prospects, financial performance, strategies and
similar matters. Polar Petroleum Corp. disclaims any obligation to update any
of its forward-looking statements, except as may be required by law.
Cautionary Note to U.S. Investors: The United States Securities and Exchange
Commission permits U.S. companies, in their filings with the SEC, to disclose
only those mineral deposits that a company can economically and legally
extract or produce. We may use certain terms in this press release, such as
"measured," "indicated," and "inferred" "resources," which the SEC guidelines
prohibit U.S. registered companies from including in their filings with the
SEC. US investors are urged to consider closely the disclosure in our Form
10-K which may be secured from us, or from our website at
1. Reuters website, Mar. 22, 2013.
2. Russian Times website, Mar. 21, 2013.
3. Petroleum News website, Feb. 13, 2013.
4. Anchorage Daily News website, Feb. 13, 2013.
5. Alaska Natural Gas Transportation Projects website, June 13, 2011.
6. RigZone website, Mar. 11, 2013.
Contact: INVESTOR RELATIONS:
Toll Free: 1-888-765-2773
Polar Petroleum Corp. Logo
Press spacebar to pause and continue. Press esc to stop.