Polar Petroleum Corp. Completes Acquisition of Prime Alaska Properties
Bordering ExxonMobil's Point Thomson Project in Alaska's North Slope Region
ANCHORAGE, Alaska, June 3, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp.
(OTCBB:POLR) (herein after "Polar Petroleum", "Polar" and/or "the Company")
announces that on May 31, 2013, the Company completed the acquisition of a
100% Working Interest (WI) in 12 offshore oil and gas leases (~19,662 acres)
in Alaska's prolific North Slope region. 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 lease purchase agreement. The agreement 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 (Polar has an NRI of 83.5% in 7 of the leases, and 79.33% in 5 of the
Polar's newly acquired North Point Thomson Project properties are located in
close proximity to significant oil and gas activities, both historic and
ongoing, in Alaska's North Slope region:
*Bordering ExxonMobil's Point Thomson Unit to the north.
*60 miles east of Prudhoe Bay, North America's largest oil field and the
largest producing field in America.
*8 miles northeast of the producing Badami Unit (60+ MMBO).
*9 miles southwest of Unocal/Shell's Hammerhead-Sivulliq discovery
*12 miles west-southwest of the Kuvlum discovery (160-300 MMBO).
*8 miles northwest of the Stinson discovery (150+ MMBO).
*Sits along an east-west line of exploratory wells that have encountered
carbonate-rich, Pre-Mississippian "basement" lithologies, starting 8 miles
to the east: Stinson #1, Alaska State #A-1, Alaska State #F-1, Alaska
Island #1, Challenge Island #1 (on the western end of the North Point
Thomson Project), and extending westward towards the Liberty Unit area.
According to Alaska's Department of Natural Resources, the main Thomson Sand
Reservoir (i.e., the primary reservoir in ExxonMobil's Point Thomson Unit)
probably continues northwesterly beneath the southwestern portion of the North
Point Thomson Project area. The report's conclusion was based upon the 64 feet
of sand in the Challenge Island #1 well, the 6 feet of sand in the Alaska
Island #1 well, and available seismic data. Additional targets for the
North Point Thomson Project include the Pre-Mississippian of the 1990 ARCO
Stinson oil discovery located just to the east. At the same time, most of the
North Point Thomson Project area may have significant potential for oil
production due to its position on the northern flank of a ridge-like
structural feature. According to the US Geological Survey (Open File Report
98-34), this northern flank would have been oil-charged from the north as part
of the Canning-Sagavanirktok Petroleum System, as were the Hammerhead
(Sivulliq) and Kuvlum oil discoveries.
Bordering Polar's North Point Thomson Project to the south is 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. Russia's Rosneft – the world's largest publicly traded oil company –
entered an agreement in February 2013 with ExxonMobil, giving Rosneft the
option to purchase a 25% interest in ExxonMobil's holdings in the Point
Thomson field. From December 2012 to May 2013, ExxonMobil commenced
construction of a 22-mile pipeline to transport liquid natural gas condensates
westward from their PTU wells to the Badami Unit, where the liquid fuel will
be diverted into the Trans-Alaska Pipeline System (TAPS).
Neighboring Polar's North Point Thomson Project 8 miles to the southwest is
the producing Badami Unit. Badami has produced 5.9 MMBO and 30 billion cubic
feet of gas (BCFG) to date, and as of May 2012 had production of 1,535 barrels
of oil per day (BOPD).
Two miles southwest of Polar's North Point Thomson Project is the location of
the proposed Telemark Unit. 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's Red Dog #1 Well, drilled in 1999, also lies within the
proposed Telemark Unit area, and had 1,275' of oil and gas shows in Middle
Polar Petroleum Corp.'s President and CEO, Daniel Walker, commented: "By
acquiring the North Point Thomson Project, we have established a presence in a
third area marked by significant Alaska energy industry production, activity
and development involving major industry players. Our next steps will include
drawing on the insights of the surrounding historic exploration to plan an
initial work program to assess the project's estimated resources and
FOR ADDITIONAL INFORMATION
Read more about the 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 Company's North Point Thomson Project lies along the northern
border of ExxonMobil's Point Thomson Unit and is 8 miles northeast of the
producing Badami Unit.
Polar's projects comprise of 29 leases and ~66,061 acres, and 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. Department of Natural Resources, State Of Alaska; Point Thomson Unit
Application for the Second Expansion and Third Contraction of the Unit Area.
May 24, 2002.
3. Anchorage Daily News website, Feb. 13, 2013.
4. E&E Publishing website, Apr. 16, 2013.
CONTACT: INVESTOR RELATIONS:
Toll Free: 1-888-765-2773
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