Polar Petroleum Corp. to Acquire Prime Alaska Properties Bordering ExxonMobil
Project Which is Estimated to Hold 25% of the North Slope's Recoverable
ANCHORAGE, Alaska, May 21, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp.
(OTCBB:POLR) (herein after "Polar Petroleum", "Polar" and/or "the Company")
announces the signing of a Letter Of Intent to acquire a 100% Working Interest
(WI) in 12 offshore oil and gas leases (approx. 19,662 acres in total) in
Alaska's prolific North Slope region as of May 20, 2013. The leases are
collectively known as the North Point Thomson Project.
Polar Petroleum (AK) Corp., a wholly-owned subsidiary of Polar Petroleum
Corp., signed the Letter Of Intent to acquire the properties through a lease
purchase agreement that reserved an overriding royalty of 4% for the Sellers
of the properties, and royalties for the State of Alaska of 12.5% for 7 of the
leases and 16.67% for 5 of the leases.
The properties that Polar will acquire are located ~60 miles east of Prudhoe
Bay, North America's largest oil field. The leases lie along the northern
border of ExxonMobil's Point Thomson Unit (PTU). The PTU represents an
estimated 295 million barrels of oil (MMBO)  and 8 trillion cubic feet of
natural gas (TCFG), which represents about 25% of the recoverable natural gas
on Alaska's North Slope. In February 2013, Russia's Rosneft – the world's
largest publicly traded oil company – entered an agreement with ExxonMobil,
giving Rosneft the option to buy a 25% interest in ExxonMobil's holdings in
the Point Thomson field. During this year's December-to-May operations
window, ExxonMobil began construction of a 22-mile pipeline to transport
liquid natural gas condensates from their PTU wells to the Badami Unit, where
the liquid fuel will be diverted into a pipeline spur that carries oil to the
Trans-Alaska Pipeline System (TAPS).
Additionally, the North Point Thomson Project leases are located 8 miles
northeast of the Badami Unit (60+ MMBO), which has produced 5.9 MMBO and 30
billion cubic feet of gas (BCFG) to date. As of May 2012, Badami had
production of 1,535 barrels of oil per day (BOPD). The leases are also in
close proximity to various oil discoveries: 9 miles southwest of
Unocal/Shell's Hammerhead-Sivulliq discovery (100-200+ MMBO); 12 miles
west-southwest of the Kuvlum discovery (160-300 MMBO); and 8 miles northwest
of the Stinson discovery (150+ MMBO).
The North Point Thomson Project also sits along an east-west line of
exploratory wells that have encountered carbonate-rich, Pre-Mississippian
"basement" lithologies. The line starts 8 miles to the east with the Stinson
#1, then the Alaska State #A-1, the Alaska State #F-1, the Alaska Island #1,
and continues through the Challenge Island #1 on the western end of the North
Point Thomson Project before extending westward towards the Liberty Unit area.
In particular, the Alaska St. #F-1 Well tested 284 BOPD (35 API) and 4 MMCFGPD
in Thomson, and 152 BOPD (35 API) and 3 MMCFGPD in Pre-Mississippian; the
Alaska St. #A-1 was the discovery well for Flaxman Island Oil Pool (Canning),
and tested 4,220 BWPD in Pre-Mississippian; and less than 4 miles to the
southwest of Polar Petroleum's new project, BP's Red Dog #1 Well had 1,275' of
oil and gas shows in Middle Brookian sands.
The Red Dog #1 Well is within the northeast portion of the proposed Telemark
Unit, which would lie 2 miles southwest of the North Point Thomson Project.
The new Telemark Unit would lie between the Badami and Point Thomson units,
and would develop the Tertiary "Flaxman Sands" encountered when Humble Oil
(Exxon) drilled the onshore E. Mikkelsen Bay State #1 well in 1971. BP drilled
the Red Dog #1 Well in 1999.
Polar Petroleum Corp.'s President and CEO, Daniel Walker, commented: "The
proximity of the North Point Thomson Project couldn't be overlooked, from
bordering ExxonMobil's Point Thomson Unit, to Rosneft's interest in that
project, the Badami Unit to the immediate west, nearby oil discoveries and
significant exploration well results. Alaska's energy industry is clearly
investing in the development of this area, and we're fortunate to be
positioned in the middle of that activity."
FOR ADDITIONAL INFORMATION
Read more about the Company's North Point Thomson Project 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
of oil.** The North Point Thomson Project lies along the northern border of
ExxonMobil's Point Thomson Unit and is 8 miles northeast of the producing
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
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 US 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 US 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. DOG LLC website, May 16, 2013.
2. Anchorage Daily News website, Feb. 13, 2013.
3. E&E Publishing website, Apr. 16, 2013.
CONTACT: INVESTOR RELATIONS:
Toll Free: 1-888-765-2773
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