Polar Petroleum Corp. Provides Update on Alaskan Oil and Gas Industry and Russian Giant Rosneft's Move to Enter the North Slope

ANCHORAGE, Alaska, May 13, 2013 (GLOBE NEWSWIRE) -- Polar Petroleum Corp. (OTCBB:POLR) (herein after "Polar Petroleum," "Polar" and/or "the Company") is pleased to provide an update on Alaska's oil and gas industry, particularly regarding the Russian oil and natural gas giant Rosneft's move to enter the state's North Slope area.

Rosneft is traded on the Moscow Exchange (ROSN) and the London Stock Exchange (ROSN), and became the world's largest publicly traded oil company in March 2013 when it purchased TNK-BP in a $55 billion deal that gives BP a near 20% stake in Rosneft. TNK-BP pumps roughly 1.5 million barrels of oil per day. The new Rosneft will produce ~4.6 million barrels of crude oil per day,[1] while representing 28 billion barrels of oil reserves.[2]

Recently, ExxonMobil and Rosneft announced the potential participation by either Rosneft, or an affiliate, in the Point Thomson project on Alaska's North Slope.[3] The deal gives Rosneft the option to buy a 25 percent interest in ExxonMobil's holdings in the Point Thomson field, which is estimated to contain nearly a quarter of the recoverable natural gas on Alaska's North Slope.[4]

Point Thomson is believed to contain Alaska's second largest natural gas reservoirs with approximately 8 trillion cubic feet in reserves. Point Thomson could feasibly keep the proposed North Slope natural gas pipeline full for approximately five years.

To the west, meanwhile, Prudhoe Bay is North America's largest oil field and one of America's greatest gas reservoirs. Combining both the Point Thomson and Prudhoe Bay natural gas supplies, there is enough gas to keep the pipeline full for approximately 15 years. In terms of domestic energy security, Point Thomson and Prudhoe's core gas reserves could flow 4.5 billion cubic feet of natural gas daily for Lower 48 markets, should the need arise.[5]

Polar Petroleum's Hemi Springs Project is spread along the southwestern border of the producing Prudhoe Bay Unit.

Daniel Walker, Polar Petroleum's President & CEO, commented: "It's well known how rich with potential Point Thomson is, and now it appears that both Rosneft and ExxonMobil are very serious about making the reservoir productive. Rosneft's capital and interest, along with ExxonMobil's technical ability, should push the entire region one step closer to bringing Alaska's natural gas to market."

Rosneft has expressed interest in becoming involved with the potentially lucrative North American gas market that is set to deliver liquefied natural gas (LNG) to other markets such as Asia, and for the acquisition of technological advancements that will help the development of their own Russian properties within the Arctic circle.[4]

According to Ernst Young's senior strategic analyst in oil and gas practice, Foster Mellen, the benefits of the agreement reach industry wide. "The agreement is significant for the industry, it's kind of a win-win situation," says Mellen. "It opens up to the industry the last potential resources, but at the same time it provides Rosneft the expertise and technology from a well-established company while ExxonMobil has access to a region that Western companies aren't privy to."[6]

Should the partnership lead to enhanced development of the Point Thomson reservoir, delivery of the natural gas will depend on the approval and construction of the proposed pipeline. The estimated cost for the pipeline project is $65 billion, and would run 800 miles from Alaska's Arctic to a port in the state's Southcentral region. Once liquefied, the natural gas would be exported in tankers to primary markets in Asia where prices are higher than in the U.S..[4]

The potential the proposed pipeline would bring to gas producers in the region is large, whereas the further development of Point Thomson would provide a vital supply for the proposed pipeline from Alaska's North Slope to markets. Major producers such as BP, ConocoPhillips, and ExxonMobil itself, along with the pipeline company TransCanada Corp., have already committed a team of more than 200 people that are working on the Alaska pipeline project.[4]

With the infrastructure in place, the potential for other fields and new discoveries in the region could potentially keep the pipeline full for decades more.[5]

FOR ADDITIONAL INFORMATION

Read more about Alaska's natural gas production potential within the 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.**

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).

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 U.S. 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 U.S. 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:

Contact: INVESTOR RELATIONS:
         Toll Free: 1-888-765-2773
         E-mail: ir@polarpetro.com