Photo Release -- Exxon to Spend $253 Million on Point Thomson Pipeline With
Capacity of 70,000 Barrels a Day to Immediate South of Polar's North Point
ANCHORAGE, Alaska, June 10, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp.
(OTCBB:POLR) (herein after "Polar Petroleum," "Polar" and/or "the Company") is
pleased to provide an update on ExxonMobil's significant progress on its Point
Thomson project. The Point Thomson oil and gas field stretches across the
shore of the Beaufort Sea, roughly 60 miles east of Prudhoe Bay on Alaska's
North Slope. Polar Petroleum's North Point Thomson Project, meanwhile, lies
along the northern border of ExxonMobil's Point Thomson project.
Exxon and ROSNEFT of Russia
Exxon and ROSNEFT of Russia expanded
their 2011 Strategic Cooperation
The Point Thomson field is estimated to hold a potential 8 trillion cubic feet
of natural gas -- an estimated quarter of the total known reserves in the
region -- as well as hundreds of millions of barrels of oil.(4) This field is
immediately south of Polar's North Point Thomson Project.
Polar Petroleum has engaged petroleum geologists to conduct a geological study
on the oil and gas potential of its North Point Thomson Project. This study
should be completed within a matter of weeks, which will allow the company to
advance its exploration project in the region. Developments currently being
made by ExxonMobil and its partners only further increase the potential for
exploration to be conducted by Polar and reduce infrastructure costs for the
ExxonMobil's two major partners in the Point Thomson field are BP and
ConocoPhillips. On February 13th, 2013, ExxonMobil and Russian Oil Giant,
Rosneft, announced the potential participation by either Rosneft or an
affiliate in the Point Thomson project.(1) The deal gives Rosneft the option
to buy a 25% interest in the Point Thomson field.(2) Rosneft became the
world's biggest publicly traded oil producer when it purchased TNK-BP from BP
in a $55 billion deal in 2013.(3)
To view the image of this momumental signing ceremony between ExxonMobil and
Rosneft in the presence ofRussian President Vladimir Putin, please use the
following link: http://www.globenewswire.com/newsroom/prs/?pkgid=19202 (8)
Point Thomson was recently cleared for development following a lengthy legal
battle between the state of Alaska and Exxon Mobil over a decades-long lack of
development at the field, considered the largest undeveloped oil-and-gas field
on the North Slope.(5) The field is estimated to hold a potential 8 trillion
cubic feet of natural gas -- an estimated quarter of the total known reserves
in the region -- as well as hundreds of millions of barrels of oil.(4) This
field is immediately south of Polar's North Point Thomson Project.
ExxonMobil's Point Thomson Project could be worth upwards of $100 billion if
the estimated quantities of oil and gas in the field prove true.(4)This is
very promising news for Polar Petroleum's North Point Thomson Project adjacent
ExxonMobil will produce natural gas condensate (i.e., a light hydrocarbon
liquid) from the Point Thomson field. The condensate will be produced through
a process known as cycling, where natural gas is first brought to the surface
for collection of the liquids, followed by the dry gas being shot back
underground for storage.
Initial production of natural gas condensate is expected at a rate of 10,000
barrels a day by May 2016. While the initial rate of production is small in
comparison to the North Slope's overall oil production of 550,000+ barrels per
day, the Point Thomson project is considered to be only the initial stage of a
potential multibillion-dollar effort to fully exploit one of the largest and
potentially last undeveloped oil and gas fields in North America.
The Point Thomson project will include 3 drill pads. The central pad will host
the process and compression equipment needed to produce the natural gas
condensate. To date, 2 wells have been drilled on the central pad.(6)
ExxonMobil plans to expand the existing 13-acre central pad at Point Thomson
to 56 acres. Three construction camps will be needed to build the gas cycling
project. They will be "independent operations," each with its own water and
wastewater treatment plant, ExxonMobil said. The camps can be moved to
different locations at Point Thomson as the work progresses, the company
Initially, an existing 32-person "pioneer camp," known as the Wolverine Camp,
will be mobilized to the central pad by tundra travel. The camp is scheduled
to arrive in December, according to paperwork filed with the DEC. A 340-person
construction camp also is expected to arrive at the central pad at about the
same time. It is expected to operate until 2016. Finally, a 200-person camp
will be mobilized to Point Thomson in early 2013. That camp will stay on site
after construction and will be downsized as a 74-person field operations
The operations camp will be designed for a 30-year life, ExxonMobil said.(6)
ExxonMobil's plans for a 30 year camp life proves that they are fully
committed to the development of their Point Thomson Project in Alaska and to
the long-term development of the region. All of this is very promising for
ExxonMobil's recent construction efforts have been focused on the project's
central pad as well as on the new 22-mile, $253-million Point Thomson export
pipeline. The pipeline will transport the field's liquids production westward
to the producing Badami Unit. Once at Badami, the liquids will be transported
through the Badami pipeline to connect with the Trans-Alaska Pipeline System
The Point Thomson pipeline will run west along the North Slope's coast. The
insulated pipeline will run above ground, supported on brackets called
'vertical support members,' or VSMs. To date, all of the roughly 2,200 VSMs
have been installed in preparation for the installation of the export pipeline
and gathering line next winter.
The Point Thomson pipeline will be 12 inches in diameter with a capacity of
70,000 barrels per day. With ExxonMobil's initial condensate production being
targeted at only 10,000 barrels per day, the pipeline's surplus capacity of
~60,000 barrels per day will allow for greater development of the Point
Thomson field, as well as potential production from other developments in the
North Slope's eastern region.
Other construction at the Point Thomson project has included modules for a
permanent work camp being placed on their foundations at the central pad in
April 2013. Further infrastructure development is planned for this summer,
including the commissioning of the camp, completion and certification of an
airstrip, and installation of a permanent service pier.(7)
Polar Petroleum Corp.'s President and CEO, Daniel Walker, commented: "It's
encouraging to see the serious progress ExxonMobil is making toward realizing
Point Thomson's production potential. We're closely following ExxonMobil's
ongoing efforts in light of our North Point Thomson Project being positioned
to the immediate north of the Point Thomson project and the related
infrastructure being developed."
FOR ADDITIONAL INFORMATION
Read more about Alaska's North Slope on Polar Petroleum's official website, as
well as further information about the Company and its latest news releases at
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 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. Petroleum News website, Feb. 13, 2013.
2. Anchorage Daily News website, Feb. 13, 2013.
3. Reuters website, Mar. 22, 2013.
4. Alaska Dispatch, Feb. 13, 2013.
7. Petroleum News website, May 19, 2013.
This photo is also available at Newscom, www.newscom.com, and via AP
CONTACT: INVESTOR RELATIONS:
Toll Free: 1-888-765-2773
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