SEC suspends Polar Petroleum trading

Eric Lidji

For Petroleum News

The U.S. Securities and Exchange Commission has suspended traded of Polar Petroleum Corp. because of questions about the accuracy of information released by the company.

The SEC suspended trading of the Alaska-based independent for 10 days starting June 10, “because of questions regarding the adequacy and accuracy of assertions by Polar, and by others, to investors in press releases and promotional material concerning, among other things, the company’s assets, operations, and financial condition,” the SEC wrote.

The suspension order provides no details of the specifics of the SEC investigation, and the SEC said it does not comment on companies after the end of a 10-day suspension. The suspension ends June 21, but whether Polar Petroleum can continue to trade at that point depends on the company passing certain reviews at that time, according to the SEC.

Polar Petroleum did not return calls made to its Alaska or toll-free numbers.

Formed in Nevada in March 2011 as the electronics recycling firm Post Data Inc., Polar Petroleum changed its name in mid 2012 with an eye toward Alaska oil exploration.

A subsidiary called Polar Petroleum (AK) Corp. purchased a package of North Slope leases from investors Daniel K. Donkel and Samuel H. Cade in November 2012 for $1.25 million, but with only $150,000 due at signing. Polar Petroleum issued 7 million shares of stock to its director Robert Walker in October 2012, valuing the package at $100,000.

The deal requires Polar to drill an exploration well of 8,000 feet or deeper at Hemi Springs, the largest of its prospects, within two years of closing. Polar Petroleum later released a study by two geologists that provided optimistic reserves estimates for the prospect. Within days of releasing the report, Polar Petroleum announced — in two separate news releases — that it had appointed both geologists to an advisory board.

In its quarterly filings from February 2013, Polar Petroleum valued its total assets at some $1.4 million, but those assets came almost entirely from “unproved” oil and gas properties. The company also reported having some $125,000 in cash. Between March 2011 and December 2012, the company reported a net loss of more than $280,000.

Since announcing its new focus as an oil exploration company this past February, Polar Petroleum has issued 20 press releases, as well as links to Alaska and industry news.