ANCHORAGE, Alaska, May 15, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp. (OTCBB:POLR) (herein after "Polar Petroleum", "Polar" and/or "the Company") announces it has engaged regional experts Mr. David T. Gross and Mr. Donald W. Brizzolara to prepare a report on the shale oil production potential of the Company's 2 oil projects on Alaska's North Slope: the Hemi Springs Project and the Franklin Bluffs Project. The Company recently signed agreements with Mr. Gross and Mr. Brizzolara, appointing them to Polar Petroleum's Advisory Board as Head of Alaskan Exploration and as Chief Geological Advisor, respectively. The Company will use the report to better understand the potential shale oil resource and production potential of its 2 North Slope projects.
Mr. Gross represents a 30-year career as a geologist and a current focus on the North Slope of Alaska doing geologic analyses and petroleum prospect evaluations, most recently in the Hemi Springs-South Prudhoe area. Mr. Brizzolara represents 34 years of experience in oil and gas exploration and development geology (Prudhoe and Kuparuk fields), and experience as a successful prospect generator resulting in oil discoveries (Kuvlum, Midnight Sun/Sambuca) in the North Slope of Alaska.
According to Alaska's Department of Natural Resources, the source rocks of Alaska's prolific North Slope oil fields compare favorably with the most prominent emerging Lower 48 source rocks, such as the Eagle Ford in Texas and the Bakken in North Dakota and Montana. At the same time, unlike the Lower 48 deposits that only target a single geologic formation, the North Slope represents 3 potentially prolific formations stacked on top of each other: the Shublik, HRZ/Hue shale and Lower Kingak shale source rocks. According to the leading shale oil exploration company in Alaska, Great Bear Petroleum, only about 20% of the oil from the North Slope's source rocks has been pumped to date by conventional wells, while the remaining 80% of the resource remains stuck in the rock.[1] GBP has told Alaska lawmakers there could be another 100 billion barrels of oil waiting to be discovered in the original source rocks that fueled Prudhoe Bay alone.[2] The US Geological Survey (USGS), meanwhile, estimates Alaska's North Slope shale formation represents the second-largest US deposit of unconventional crude after the Bakken while exceeding the Eagle Ford deposit.[3]
Great Bear Petroleum (GBP) is pursuing an unconventional shale oil play in the 3 major source rocks mentioned above, which sourced the North Slope's giant oil fields. To date, GBP's results have met expectations for finding oil in the source rocks.[4] Polar Petroleum's Hemi Springs Project borders GBP's North Slope holdings and is within 10 miles of 1 of the proposed GBP exploration wells in the immediate vicinity. GBP's holdings also completely surround Polar Petroleum's Franklin Bluffs Project, which is within 5 miles of 4 of GBP's proposed wells.
GBP started test drilling in 2012 with 4 of 6 proposed drilling locations along the Dalton Highway with production expected to begin in 2013.[5] As of year-end 2012, GBP and its partner, industry services giant Halliburton, had drilled their first 2 vertical wells: Alcor No.1 and Merak No.1. The company's president, Ed Duncan, stated: "We have drilled through all of our targeted source rock units. We've proven those [to be] present at the depths predicted and in the state of thermal stress or thermal maturity, certainly within the range of expected outcomes."[5] GBP is currently analyzing the data collected from its activities in 2012, and is securing permits and gathering the environmental data needed to expedite future operations.[6]
GBP's plans call for three 15-year phases, each involving 3,000 wells drilled at an average of 200 wells per year and requiring at least 20 rigs working year-round. They predict production rates to reach 200,000 barrels per day by 2020 and to have a peak rate of 600,000 barrels per day by 2056.[5]
Since GBP's shale-oil-focused North Slope acquisitions in 2010, other companies have also acquired Alaska leases targeting unconventional oil development near GBP's operations. Among them are industry major ConocoPhillips, which secured a block of leases to the west.[6] ConocoPhillips is Alaska's largest oil producer and has major ownership interests in 2 of North America's largest oil fields, both located on Alaska's North Slope: Kuparuk (operated by ConocoPhillips) and Prudhoe Bay (operated by BP). According to ConocoPhillips, shale is proving an increasingly important source of oil and natural gas liquids, prompting ConocoPhillips to enter several of the most promising shale plays early on.[7]
Polar Petroleum Corp.'s President and CEO, Daniel Walker, commented: "With this much interest and investment in the North Slope's potential for shale oil production, we're keeping a very close eye on the industry's developments. At the same time, we will have the report by David Gross and Donald Brizzolara to inform our understanding of the potential shale oil resource and production potential of our 2 North Slope projects."
FOR ADDITIONAL INFORMATION
Read more about Alaska's proven and potential energy production 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
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. Alaska Dispatch, Mar. 3, 2011.
2. Alaska Dispatch, Mar. 10, 2011.
3. Business Week, Feb. 27, 2012.
4. Petroleum News (website), Sept. 23, 2012.
5. Petroleum News (website), Mar. 06, 2011.
6. E&E Publishing website, Apr. 3, 2013.
7. ConocoPhillips website, May 14, 2013.