ANCHORAGE, Alaska, April 29, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp. (OTCBB:POLR) (herein after "Polar Petroleum," "Polar" and/or "the Company") announces the preliminary conclusions of a new Geological Study ("the Study") on the Company's Hemi Springs Project and surrounding Alaskan North Slope region. According to the Study, the Hemi Springs Project acreage could represent total recoverable petroleum reserves of approximately 558 million barrels of oil (MMBO).
The Study, titled Geologic Study and Initial Evaluation of the Potential Petroleum Reserves of the Hemi Springs Project, North Slope, Alaska, was authored by David T. Gross (BSc, MSc, Consulting Geologist, Gross Geologic Services) and Donald W. Brizzolara (BA, BSc, MSc, Consulting Geologist) on March 25, 2013.
According to the Study, the Hemi Springs Project area carries considerable hydrocarbon potential largely due to its unique position in close association with two of North America's largest oil and gas accumulations, the Prudhoe Bay Field and the Kuparuk River Field. The Hemi Springs Project is located on the southern boundary of the Prudhoe Bay Unit and southeast of the Kuparuk River Unit, which together constitute the majority of the oil production on the North Slope (51% and 20%, respectively). The Hemi Springs Project area is only about one mile south of several producing oil wells in the Prudhoe Bay Unit. It also lies less than a mile west of the all-weather Dalton Highway and is crossed by the Trans-Alaska Pipeline System (TAPS).
The Study concludes it is to be expected that the same source rocks that have supported the North Slope's prolific production to date, as well as comparable migration pathways and geohistories, will influence the generation of hydrocarbon accumulations in the Hemi Springs Project area. In particular, the Study assigned estimated recoverable reserves of 298.7 MMBO from the Ivishak Formation, 139.7 MMBO from the Kuparuk Formation, and 119.8 MMBO from the Schrader Bluff Formation / West Sak Formation for a total of approximately 558.2 MMBO.
Contributing to the Study's conclusions were results from four exploration wells that were previously drilled within or immediately adjacent to the Hemi Springs Project area. In the case of the Burglin #33-1 well, hydrocarbon shows were essential factors that led to the creation of the Arctic Fortitude Unit. The Hemi Springs State #1 well, meanwhile, though recently plugged and abandoned, was certified by the State of Alaska as being Capable of Producing in Paying Quantities (CPPQ) in 1984.
The following results and conclusions are among those related to the Hemi Springs State #1 well (HSS#1) that are cited in the Study:
- It is especially noteworthy that 21 barrels of 27 API oil were recovered from the Ivishak Formation from a drillstem test (DST) in HSS#1.
- The 125 MMBO assigned to the project acreage in the fault block containing HSS#1 should be considered to be of lower risk due to the oil recovered from the well at the Ivishak horizon.
- Several successful HSS#1 DSTs produced oil from the Kuparuk C-sand, serving as evidence for the extremely high prospectivity of the Kuparuk C-Unit within the project area.
- The 104 MMBO assigned to the project acreage in the fault block containing HSS#1 should be considered to be of lower risk due to the oil recovered from numerous DSTs at the Kuparuk horizon and the well's CPPQ certification by the State of Alaska.
- Numerous West Sak and Ugnu formation oil shows were noted in the sidewall and conventional core descriptions from HSS#1 in the Hemi Springs Project.
- The conventional and sidewall core data support the conclusion that isolated oil-bearing traps have developed involving the region's faults in conjunction with the northeastern structural dip.
The Study also noted that, while the shale oil play on the North Slope is still in its seminal phase, it is important to note that the presence of all three shale oil prospective horizons are well established under the Company's Hemi Springs Project acreage and later could very well prove to contain significant recoverable oil reserves.
Polar Petroleum Corp.'s President and CEO, Daniel Walker, commented: "This new Geological Study has confirmed our positive expectations of the extent to which oil reserves could exist under our Hemi Springs Project acreage. We can now work toward obtaining more definitive reserve estimates through seismic data acquisition over the area that will allow for detailed structural mapping of the prospects discussed in the Study, and possibly other prospects."
ESTIMATED RECOVERABLE RESERVES in barrels of oil (BO)
|HS State #1 Fault Block||125,447,442 BO|
|Southern Fault Block||113,500,067 BO|
|D/T Eileen Prospects (3)||59,736,877 BO|
|Kuparuk C Reservoir|
|HS State #1 Fault Block||104,060,399 BO|
|Southern Fault Block||35,599,610 BO|
|Schrader Bluff - West Sak Reservoir|
|HS State #1 Fault Block||62,601,532 BO|
|SE U/T Fault Block||17,886,152 BO|
|SW U/T Fault Block||39,349,534 BO|
FOR ADDITIONAL INFORMATION
Read more about the Hemi Springs 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.**
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 http://www.polarpetro.com.
CONTACT: 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: email@example.com
Source:Polar Petroleum Corp.