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Polar Petroleum Corp. Reports on Passing of Industry-Friendly, Tax-Reducing Bill by Alaska's Legislature to Increase Investment and Production

ANCHORAGE, Alaska, May 28, 2013 (GLOBE NEWSWIRE) -- 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.

Source:Polar Petroleum Corp.