ANCHORAGE, Alaska, June 10, 2013 (GLOBE NEWSWIRE) -- 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
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.
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
7. Petroleum News website, May 19, 2013.
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Source:Polar Petroleum Corp.