Jay Wilcox

Red Deer, Canada – May 14, 2013 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) today announced its operating and financial results for the quarter ended March 31, 2013. First Quarter Highlights The operations in Papua New Guinea (PNG) generated significantly higher revenue in the first quarter which offset the slower activity levels in the Canadian operation   Despite increased revenues, adjusted EBITDA decreased 12% to $12.6 million for the three months ended March 31, 2013 from $14.3 million for the same period in 2012 due primarily to a reduction in the Canadian operating margin. Consolidated revenue for the first quarter increased 6% to $44.8 million compared to $42.2 million for the same quarter in 2012.    The growth in revenue for the quarter was driven by increased activity in PNG with revenues of $29.9 million compared to $23.5 million for the first three months of 2012 as a result of having a second active drilling rig operating in 2013.  In addition, the Corporation continues to see increased revenues derived from its rental fleet with growth year over year of approximately $1.3 million from its rental operations in PNG. Revenue for Canada was $14.9 million for the first three months of 2013, a decrease of $3.8 million (20%) for the same period in 2012.  The first quarter saw reduced revenue levels in the core snubbing and nitrogen businesses as both activities were softer with overall industry activity down.   The operating margins in Canada were adversely affected by the reduced revenue levels and by competitive pricing conditions primarily in the nitrogen activity. Consolidated operating margins continued to be strong at 33% for the quarter but fell from 39% earned for the three months ended March 31, 2012.  The percentage was affected by the higher rig rental costs associated with operating an additional active rig in PNG in 2013 while the lower operating margins in Canada caused the overall reduction of $1.6 million in the operating margin. As a result of its continued strong financial results, High Arctic increased its monthly dividend to $0.0125 per share in March, 2013, a 25% increase from the previous monthly dividends paid.  At that monthly rate, the annual dividend will total approximately $7.5 million, which represents an annualized rate of 23% of funds provided from operations during the trailing twelve months ended March 31, 2013. High Arctic continues to maintain a strong balance sheet.  At March 31, 2013, the Corporation had $9.6 million of net cash on hand (March 31, 2012 – $6.5 million) and working capital of $40.9 million (March 31, 2012 – $34.5).  The Corporation also continues to generate strong cash flows from its operations.  For the three months ended March 31, 2013, High Arctic generated $11.2 million (2012- $13.4 million) of funds provided from operations. Selected Comparative Financial Information The following is a summary of selected financial information of the Corporation.  All figures are derived from financial information that is prepared or presented in accordance with International Financial Reporting Standards (“IFRS”):     Three Months Ended March 31 $ millions (except per share amounts)   2013 2012 Change % Revenue   44.8 42.2 2.6 6             EBITDA(1)   12.4 14.0 (1.6) (11) Adjusted   EBITDA(1)   12.6 14.3 (1.7) (12)             Operating   earnings   9.8 11.7 (1.9) (16)             Net   earnings   8.4 10.7 (2.3) (21) per share (basic)(2) 0.17 0.23 (0.06) per share (diluted)(2) 0.17 0.22 (0.05) Funds   provided from operations(1)   11.2 13.4 (2.2) (16) per share (basic) 0.23 0.29 (0.06)   per share (diluted) 0.22 0.28 (0.06)               Dividends     1.6 – 1.6 –             Capital   expenditures   5.9 1.6 4.3 – Working   capital   40.9 34.5 6.4 19 Total   assets   131.4 105.5 25.9 25           Total non-current   financial liabilities   13.7 11.2 2.5 22             Net cash,   end of period (1)   9.6 6.5 3.1 48             Shares   outstanding at end of period (millions)   49.8 49.6 0.2 – (1)     Readers are cautioned that EBITDA, Adjusted EBITDA, Funds provided from operations and net cash do not have standardized meanings prescribed by IFRS – see “Key Financial Measures”. (2)     The restricted shares held by a trustee under the Executive and Director Incentive Share Plan are included in the shares outstanding.  The number of shares used in calculating the net earnings per share amounts are determined differently as explained in the Financial Statements. Outlook The PNG LNG project is on schedule to deliver first gas towards the end of 2014 and this continues to be the focus of our main customer and their partners in the facility.  While the long term outlook is favourable as the associated production becomes an important cash flow stream for our customer, the capital demands of that project affect the capital available for drilling in the near term.  As a result, High Arctic returned to a one drilling rig operation at the start of May, 2013 and some of the associated equipment rental fleet is being placed on a standby rate.  It is currently forecasted that Rigs 103 and 104 will operate on a leapfrog basis for the balance of 2013, similar to what occurred during the first nine months of 2012.  We do not anticipate any drilling opportunities with other operators in 2013.  Rig 102 should operate into the fourth quarter at a minimum.  We have begun discussions with our main customer on the long term contract renewals and anticipate an early renewal effective as early as July 1, 2013.  Some pricing concessions have been offered, particularly on the rental equipment, to reflect the long term nature of the rentals, some of which have now been operating for that customer continuously for more than five years.  Other cost reductions, to … Read more

Red Deer, Canada – May 13, 2013 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce the results of the Annual and Special Meeting of the shareholders of High Arctic held on May 10, 2013. All matters put forth were approved, including the re-election of each nominee as a director of the Corporation for the upcoming year, as follows:   % of VOTES FOR Simon P.D. Batcup                               99.94% Michael R. Binnion                              99.94% Christopher R. Warren                        99.98% Steven R. Vasey                                     99.94% Daniel J. Bordessa                                99.94% Dennis F. Sykora                                  99.94% Bruce A. Thiessen                                 99.94%   In addition to the annual resolutions, including the re-appointment of PricewaterhouseCoopers LLP, Chartered Accountants, as auditors, a resolution was passed approving the unallocated options under the Corporation’s stock option plan.   About High Arctic The Corporation is a global provider of specialized oilfield equipment and services, including drilling, completion and workover operations. Based in Red Deer, Alberta, High Arctic has domestic operations throughout western Canada and international operations in Papua New Guinea.   Further Information Ken Olson Chief Financial Officer 403 340 9825 ken.olson@dev.haes.ca [fusion_builder_container hundred_percent=”yes” overflow=”visible”][fusion_builder_row][fusion_builder_column type=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”no” center_content=”no” min_height=”none”][fusion_alert type=”error”]NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW[/fusion_alert][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

FOR IMMEDIATE RELEASE   Red Deer, Canada – March 13, 2013 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) today announced its operating and financial results for the fourth quarter and year ended December 31, 2012.   Highlights for 2012 High Arctic continued its strong year over year growth in revenue, EBITDA and net earnings in 2012.  Adjusted EBITDA increased 19% to $39.6 million for the year.  Consolidated net earnings for the year increased by 60% to $28.8 million from $18.0 million earned in 2011.  The operations in Papua New Guinea (PNG) generated higher revenue and EBITDA in the fourth quarter which helped to offset slower activity in the Canadian operation.  The Corporation continues to see increased revenues derived from the capital additions made in PNG during 2011 and early 2012. Consolidated revenue for the fourth quarter increased 4% to $38.6 million compared to $37.1 million for the same quarter last year.  Year to date revenues of $146.2 million were up 15% compared to 2011.   Consolidated operating margins continued to be strong at 31% for the quarter, (2011 – 35%) and 33% for 2012 year to date compared to 32% last year.  The margins benefitted from the favourable returns generated during 2012 on capital invested in new rental equipment offset somewhat by lower margins during 2012 on nitrogen sales and the supply of additional personnel services in PNG carrying a lower margin. Commenting on the results, Bruce Thiessen, High Arctic’s Chief Executive Officer, stated: “2012 proved to be a strong year for High Arctic and one which saw growth and adaptation in our chosen markets. In PNG, we continued to invest in our rental fleet, both with our primary customer and with new customers, helping us to grow our revenue base.  We continue to strengthen our relationship with our primary customer by delivering solutions to them in a challenging environment.    In Canada, we experienced a strong start to the year as our operations focused on liquids rich wells and are evolving to also provide services in the oil basins.  This adaptation is important for the Corporation given the continuing low gas prices and the associated reduction in gas field activity.” The strong growth in revenue for the year was driven by increased activity in PNG and by the deployment of a 250K UB Unit in Canada.  In PNG, the fourth quarter revenue was $27.8 million compared to $21.3 million in 2011, the 31% increase primarily from the growth in the matting and equipment rental business and from the start-up of a second drilling rig that went on full operating rate on November 1, 2012.  Year to date revenues in PNG of $99.0 million are up 23% for the same reasons and because of the operation of Rig 102 for all of 2012 compared to seven months in 2011. Revenue for Canada was $47.2 million for 2012, relatively unchanged from 2011.  The fourth quarter saw significantly reduced revenue levels in the core snubbing and nitrogen businesses as both activities were softer with overall industry activity down. In addition to the strong financial results, some of the accomplishments for the Corporation during 2012 include: High Arctic instituted a monthly dividend of $0.01 per share with the first monthly dividend paid on June 14, 2012.  At that monthly rate, the annual dividend would total $6.0 million, which represents 17.2% of cash flows provided by operations during 2012. The Company expanded its rental business in PNG deploying additional mats, cranes and other ancillary equipment, as well as commissioning a newly built 104 person camp that was placed in use in January 2013. In Canada, land was acquired for a new facility in Grande Prairie with construction set to begin in 2013 as part of the strategy to grow in that region. High Arctic continues to maintain a very strong balance sheet.  At December 31, 2012, the Corporation had $27.4 million of cash on hand, well in excess of its debt of $13.8 million.  The Corporation also continues to generate strong cash flows from its operations.  For the year, High Arctic generated $34.9 million (2011- $29.8 million) of cash flows provided by operations, an increase of 17%.  The annual Adjusted EBITDA was $39.6 million for 2012 compared to $33.4 million for the year ended December, 2011.   Selected Comparative Financial Information The following is a summary of selected financial information of the Corporation.  All figures are presented in accordance with the International Financial Reporting Standards (“IFRS”):   Three Months Ended December 31   Years Ended December 31   $ millions (except per share amounts) 2012 2011 Change %   2012 2011 Change % Revenue 38.6 37.1 1.5 4   146.2 127.2 19.0 15                     EBITDA(1) 9.8 11.0 (1.2) (11)   38.2 32.0 6.2 19 Adjusted   EBITDA(1) 10.0 11.2 (1.2) (11)   39.6 33.4 6.2 19                     Operating   earnings 7.1 8.8 (1.7) (19)   28.5 23.3 5.2 22                     Net   earnings 5.9 7.8 (1.9) (24)   28.8 18.0 10.8 60 per share (basic)(2) 0.12 0.17 (0.05)   0.62 0.40 0.22 per share (diluted)(2) 0.12 0.16 (0.04)   0.59 0.37 0.22     Cash   flows provided by operations(1) 8.7 10.7 (2.0) (19)   34.9 29.8 5.1 17                     Dividends   1.5 – 1.5 –   4.0 – 4.0 –                     Capital   expenditures 2.9 0.2 2.7 1350   19.9 13.3 6.6 50                     Total   assets           118.9 93.5 25.4 27                     Total   non-current financial liabilities           13.7 12.4 1.3 10                     Net cash   (net … Read more