Polar Petroleum introduced in North Slope of Alaska, US

US-based oil and gas investors Daniel K Donkel and Dr Samuel H Cade have introduced Polar Petroleum, a new independent oil and gas exploration and production entity, in the North Slope of Alaska, US.

Polar Petroleum came into being after Donkel and Cade sold about 45,760 acres in the North Slope of Alaska, to form one of the North Slope oil and gas companies that are working to stop the sharp fall in the state’s oil production.

Around 40,000 acres is located in the Hemi Springs area, with 5,760 acres in Great Bear Petroleum oil shale on Dalton Highway. Both these locations are near to the Trans Alaska oil pipeline.

Under the new deal, Polar will hold 20% carried working interest in the first well and 4% overriding royalty, plus an undisclosed cash amount.

Oil and gas investor Dan Donkel said Trans Alaska pipeline will be closed if new oil is not found and produced fast.

"However, the state legislators and Governor continue to work to entice companies like Polar Petroleum to drill in Alaska, every Alaskan will feel the pinch if the oil dollars dry up," added Donkel.

"The election results indicate clearly that the people of Alaska want more oil fast and they want the high paying jobs that come with an oil boom.

"I believe this legislature is ready to do the work that must be done to improve the tax regime and to take away some of the harsh rules and unnecessary cost of the current complicated permitting process which has brought oil production to an all-time low."

In 2010, Donkel and Cade sold about 2,000 acres at Cook Inlet, which includes independent companies like Buccaneer, Alaska Crude and Aurora Gas.

Donkel is expecting the addition of new tax incentives for new exploration and a positive tax change towards the ACES programme with a new pro-development legislature will project the Alaska as more appealing for oil and gas exploration.

---

Image: Hemispring Prospect Credit: Business Wire.