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 leases).
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 (100-200+ MMBO).
- 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.[1]
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.[2] 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.[1]
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) [1] and 8 trillion
cubic feet of natural gas (TCFG), which represents about 25% of the
recoverable natural gas on Alaska's North Slope.[3] 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.[3] 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).[4]
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).[1]
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 Brookian sands.[1]
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
production potential."
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 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. 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
E-mail: ir@polarpetro.com
OTCBB:POLR
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