Polar Resources Corporation enters into a letter of intent and announces private placement



    TSX-VENTURE: PLR

    VANCOUVER, Jan. 11 /CNW/ - Polar Resources Corporation ("Polar" or the
"Company") announces that it has entered into a letter of intent with Caribe
Oil & Gas ("COG") for the assignment of a joint venture interest of COG with
Dominion Oil (USA) Corporation (the "Assignment") in an incremental oil
project in Barbados; both COG and Dominion are privately-held companies. As a
result of the Assignment, Polar will fund 100% of the costs associated with
development in order to establish incremental production on the project; the
cost of development is estimated to be approximately $500,000. Polar will earn
an undivided 35% interest in the incremental production (subject to the gross
overriding royalty as contemplated below) until payback of expenses, and
reducing to 17.5% following such payback. For greater certainty, Polar will be
earning an interest only in the incremental oil production of an existing
producing onshore oil field in Barbados owned by the Barbados National Oil
Company. Present onshore production from the BNOC field is 850 bopd.
    Polar has retained Petrotech Engineering Ltd. to prepare an independent
engineering and economic evaluation of the Barbados incremental oil project
according to National Instrument 51-101 (Disclosure of Oil and Gas
Activities).
    To complete the Assignment, Polar will loan $120,000 to COG for working
capital purposes, issue 2,000,000 common shares to COG within seven days of
TSX Venture Exchange approval to the Assignment and issue another 2,000,000
common shares to COG upon confirmation that incremental production of not less
than 100 gross bopd has been achieved. COG will retain a 3% Gross Overriding
Royalty on Polar's interest. A finder's fee will be paid in connection with
the Assignment.
    In addition, Polar will acquire from COG 100% of its rights to any
projects secured in the Republic of Trinidad and Tobago, Suriname, Guyana, and
Venezuela.
    Polar also announces that it has arranged, subject to regulatory
approval, a non-brokered private placement of up to 6,250,000 Units at
$0.12 per unit for gross proceeds of $750,000 (the "Private Placement"). Each
Unit will consist of one common share of the Company and one half of a share
purchase warrant of the Company. Each whole warrant will allow the holder to
purchase one additional common share of the Company at an exercise price of
$0.18 within twelve months following the closing of the Private Placement. A
finder's fee will be paid in connection with this Private Placement.
    The acquisition of the Assignment and the Private Placement remain
subject to TSX Venture Exchange acceptance. The proceeds from the Private
Placement will be used to finance the acquisition of the Assignment.

    ON BEHALF OF THE BOARD OF DIRECTORS

    "Robert Grey"
    ------------------------
    Robert Constantine Grey
    President, CEO and Director

    The TSX Venture Exchange Inc. has in no way passed upon the merits of the
    transaction and has neither approved nor disapproved the contents of this
    press release. There can be no assurance that the transaction will be
    completed as proposed or at all.





For further information:

For further information: on Polar Resources Corporation, please contact
Robert Constantine Grey, President, CEO and a director of the Company at (604)
684-9601

Organization Profile

POLAR RESOURCES CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890