Polar Petroleum to acquire Alaska properties bordering ExxonMobil project
ANCHORAGE -- Polar Petroleum Corporation has signed a Letter Of Intent to acquire a 100% working interest in 12 offshore oil and gas leases (approximately 19,662 acres, in total) in Alaska's prolific North Slope region, as of May 20, 2013. The leases are collectively known as the North Point Thomson Project.
Polar Petroleum (AK) Corp., a wholly-owned subsidiary of Polar Petroleum Corp., signed the letter to acquire the properties through a lease purchase agreement that reserved an overriding royalty of 4% for the sellers of the properties, and royalties for the State of Alaska of 12.5% for seven of the leases, and 16.67% for five of the leases.
The properties that Polar will acquire are approximately 60 mi east of Prudhoe Bay, North America's largest oil field. The leases lie along the northern border of ExxonMobil's Point Thomson Unit (PTU). The PTU represents an estimated 295 million bbl, according to DOG LLC, and 8 Tcf of natural gas, which represents about 25% of the recoverable natural gas on Alaska's North Slope, reported the Anchorage Daily News. In February 2013, Russia's Rosneft entered an agreement with ExxonMobil, giving Rosneft the option to buy a 25% interest in ExxonMobil's holdings in the Point Thomson field, reported the newspaper.
Additionally, the North Point Thomson Project leases are located eight mi northeast of the Badami Unit, which has produced 5.9 MMbbl and 30 Bcf, to date. As of May 2012, Badami had production of 1,535 bopd, according to DOG LLC. The leases are also in close proximity to various oil discoveries: nine mi southwest of Unocal/Shell's Hammerhead-Sivulliq discovery (100-200+ MMbbl); 12 mi west-southwest of the Kuvlum discovery (160-300 MMbbl); and eight mi northwest of the Stinson discovery (150+ MMbbl), according to DOG LLC.
The North Point Thomson Project also sits along an east-west line of exploratory wells that have encountered carbonate-rich, Pre-Mississippian "basement" lithologies. The line starts eight mi to the east with the Stinson #1, then the Alaska State #A-1, the Alaska State #F-1, the Alaska Island #1, and continues through the Challenge Island #1, on the western end of the North Point Thomson Project, before extending westward toward the Liberty Unit area. The Alaska State #F-1 well tested at 284 bopd (35 API) and 4 MMcf of gas in Thomson, and 152 bopd (35 API) and 3 MMcf in Pre-Mississippian. The Alaska St. #A-1 was the discovery well for Flaxman Island Oil Pool (Canning), and tested 4,220 bwpd in Pre-Mississippian; and less than four mi to the southwest of Polar Petroleum's new project, BP's Red Dog #1 well had 1,275 ft of oil and gas shows in Middle Brookian sands, according to DOG LLC.