Polar Petroleum Corp. Reports on Passing of Industry-Friendly, Tax-Reducing Bill by Alaska's Legislature to Increase Investment
May 28 2013 - 9:30AM
Polar Petroleum Corp. (OTCBB:POLR) (herein after "Polar Petroleum",
"Polar" and/or "the Company") reports that, on April 14, 2013,
Alaska's legislature passed Governor Sean Parnell's oil tax change,
Senate Bill 21 (SB 21). The new tax regime is designed to foster
greater investment in Alaska's energy industry while increasing
production.
On the passing of SB 21, Governor Parnell stated, "We are
signaling to the world that Alaska is back, ready to compete, and
ready to supply more energy once again."[1] While the state's
administration noted that new investment and production would take
time, the governor indicated that one measure of the success of SB
21 would be increased investing by oil companies to maintain their
operations in Alaska, which currently amount to some $2 billion per
year.
On a related note, on April 17, 2013, ConocoPhillips announced
its first additional investments on Alaska's North Slope based on
the tax change.[2] According to ConocoPhillips' executive vice
president for exploration and production, Matthew Fox, the company
will be deploying a new drilling rig to the Kuparuk oil field to
work over existing wells in order to increase production.[3]
Alaska's three major North Slope oil producers, ConocoPhillips,
BP and ExxonMobil, were all in favor of the tax change, arguing
that Alaska's previous tax system was punitive while making the
Northern State less attractive for investment when compared to
other energy-rich regions. With the expectation of increased
investment in Alaska due to the new tax system, it is also expected
that more oil will be transported through the Trans Alaska Pipeline
System (TAPS).[1] Since the pipeline's startup in 1977, TAPS has
transported 16+ billion barrels of oil, and currently represents
spare capacity of 1.5 million barrels per day.[4]
The new tax approach outlined by SB 21 eliminates tax rates that
increase as oil prices rise, which was the case with the previous
aggressive tax legislation methodology brought in by former
governor Sarah Palin. The former system resulted in Alaska's tax
rate exceeding 50% when oil prices were high, making Alaska less
inviting for energy companies. The new system utilizes a base tax
rate for oil companies of 35% on net profits; the former system
utilized a 25% base rate that increased by 0.4 percentage points
for every $1 above a net wellhead price of $30.[1]
Polar Petroleum Corp.'s President and CEO, Daniel Walker,
commented: "Lower taxes, new industry investment, increased
production and greater use of TAPS all add up to good news for the
industry as a whole, as well as for Polar Petroleum. With greater
energy-related activity in Alaska will come more opportunities to
capitalize on the region's proven resources."
FOR ADDITIONAL INFORMATION
Read more about Alaska's energy industry 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.** On
the 20th May, Polar signed a letter of intent to secure 12 further
leases in Alaska's prolific North Slope region. These leases are
directly north of the Point Thomson unit and South of BP's offshore
holdings. This area will be known as Polar's North Point Thomson
Project.
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 |
Suite 505 |
Anchorage, AK |
99503 |
USA |
|
INVESTOR RELATIONS: |
Toll Free: 1-888-765-2773 |
E-mail: ir@polarpetro.com |
OTCBB: POLR |
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
http://www.polarpetro.com.
SOURCES: |
1. Yahoo News, Apr. 15, 2013. |
2. Petroleum News, Apr. 21, 2013. |
3. Newsminer.com, Apr. 25, 2013. |
4. Alyeska Pipeline Service Company website,
May 9. 2013. |
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