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.
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 future.
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 of Russian 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 to ExxonMobil.
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
said.(6)
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 camp.(6)
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 Polar Petroleum.
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 (TAPS).
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 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 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. 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.
5.
http://www.alaskadispatch.com/article/point-thomson-exxon-mobil-gets-go-ahead-arctic-
gasfield-development
6.
http://www.adn.com/2012/09/14/2625366/hundreds-of-jobs-planned-for-point.html
7. Petroleum News website, May 19, 2013.
8.
http://www.examiner.com/article/exxon-and-rosneft-expand-agreements
This photo is also available at Newscom, www.newscom.com, and
via AP PhotoExpress.
CONTACT: INVESTOR RELATIONS:
Toll Free: 1-888-765-2773
E-mail: ir@polarpetro.com
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