2017

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] Calgary, Canada – September 15, 2017 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce that it has made the necessary filings, and received the necessary approvals to conduct a normal course issuer bid (“NCIB”) through the facilities of the Toronto Stock Exchange (“TSX”). The TSX has accepted the Corporation’s notice to conduct the NCIB to purchase outstanding common shares on the open market, in accordance with the rules of the TSX. As approved by the TSX, the Corporation is authorized to purchase up to 2,902,733 common shares, representing approximately 10% of the public float of High Arctic, being 29,027,338 as of September 14, 2017. As of September 14, 2017, there were 53,276,039 common shares outstanding. The maximum number of common shares that High Arctic may purchase on any given day is 20,959 common shares, which is 25% of the Corporation’s average daily trading volume on the TSX for the six months ended August 31, 2017. High Arctic may also make one weekly block repurchase which exceeds the daily limit subject to prescribed rules. All common shares acquired under the NCIB will be cancelled. The Corporation is authorized to make purchases during the period from September 19, 2017 to September 18, 2018, or until such earlier time as the NCIB is completed or terminated at the option of the Corporation. Any common shares the Corporation purchases under the NCIB will be purchased on the open market through the facilities of the TSX and/or alternative trading systems, at the prevailing market price at the time of the transaction. The Corporation has appointed National Bank Financial Inc. (“National Bank”) as its broker to conduct the NCIB transactions under an automatic purchase plan agreement (“APPA”) dated September 14, 2017. The APPA will allow National Bank to purchase common shares under the bid during internal blackout periods when the Corporation would normally not be permitted to trade in its shares. Such purchases will be at the sole discretion of National Bank based on direction received from High Arctic prior to any blackout period and in accordance with all regulatory and securities law. Management of the Corporation believes that from time to time the market price of the High Arctic common shares may not reflect their underlying value and that, at such times, the purchase of common shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining shareholders. In addition, the purchases by High Arctic under the NCIB may increase liquidity to the Corporation’s shareholders wishing to sell their common shares. The Corporation’s previous NCIB expired on January 11, 2017 and under that program, a total of 1,845,800 common shares at a weighted average price of $3.40 per share were repurchased for cancellation. Forward-Looking Statements This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Corporation’s actual results, performance or achievements to vary from those described in this Press Release. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward looking statements in this Press Release include, among others, statements pertaining to the following: High Arctic’s intentions with respect to the NCIB and purchases thereunder and the effects of repurchases under the bid. With respect to forward-looking statements contained in this Press Release, the Corporation has made assumptions regarding, among other things, that the common shares will from time to time trade below their value and that the Corporation will complete purchases of common shares pursuant to the NCIB. The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this Press Release, along with the risk factors set out in the most recent Annual Information Form filed on SEDAR at www.sedar.com. The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. About High Arctic High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The Corporation’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada. For more information, please contact: Michael Binnion Interim President & CEO Phone: 403-807-7375 Email: michael.binnion@z6a.d3d.myftpupload.com Brian Peters Chief Financial Officer Phone: 587-318-2218 Email: brian.peters@z6a.d3d.myftpupload.com [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] Calgary, Canada – August 31, 2017 – High Arctic Energy Services Inc. (“High Arctic” or the “Company”) is pleased to announce the signing of a contract for the provision and operation of a highly mobile land rig for use in Papua New Guinea (“PNG”). The formalization of the contract follows High Arctic’s conclusion of a leasing agreement with the rig owner based in Australia. The rig is currently located in Perth Australia and High Arctic is working with both its customer and the rig owner to conduct acceptance testing in the coming weeks in preparation for the export of the rig to Port Moresby in September 2017. The contract rates are effective from the clearance of the rig in to PNG for an initial term of six months, with provision for extensions for a total term of up to eighteen months. After a short period transporting the rig to the first well site, drilling operations are expected to commence early in the fourth quarter of 2017. The project is to prove the efficacy of a small footprint rig for field optimisation work in areas with or close to existing roads, and the Company is optimistic that success could lead to unlocking further opportunity for our customers to explore and develop in this current tight market cycle.  It is intended that the contract would roll in to the recently announced 50/50 joint company. Mike Maguire, President International commented “We are pleased to be able to work collaboratively with our customer to find new and innovative ways to sustainably drive exploration and development activity in cost sensitive projects. The joint work undertaken over many months to select and refine the fast moving rig package builds on our strong working relationship and provides a blue print for the recently announced 50/50 joint company.” Forward-Looking Statements This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements.  Such statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions.  Many factors could cause the Company’s actual results, performance or achievements to vary from those described in this Press Release.  Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this Press Release include, among others, the Company’s ability to negotiate and execute agreements to effect the proposed joint company with its key customer and commodity prices and the impact they have on industry activity.  In addition to the risk factors set out above and elsewhere in this Press Release, readers are directed to the additional risk factors set out in the Company’s most recent Annual Information Form filed on SEDAR at www.sedar.com. The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release.  The Company does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law. About High Arctic High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The Company’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada. For more information, please contact: Michael Binnion Interim President & CEO Phone: 403-807-7375 Email: michael.binnion@z6a.d3d.myftpupload.com Brian Peters Chief Financial Officer Phone: 587-318-2218 Email: brian.peters@z6a.d3d.myftpupload.com [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] High Arctic Reports 2017 Second Quarter Results [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] Calgary, Canada – August 2, 2017 – High Arctic Energy Services Inc. (“High Arctic” or the “Company”) announces the one year extension of its current contracts for the operation of rigs 103 and 104 effective 1 August 2017. Commensurate with the contract extensions High Arctic received notice to mobilize rig 103 to drill the P’nyang South 2 appraisal well with work commencing immediately under full contract operating rates and targeting commencement of drilling in the fourth quarter of 2017. Working with our customer on cost efficiencies and rig improvements, the contract rates have been discounted 22% in line with previous guidance. The majority of the discount being offset by lower operating costs from efficiencies and significant discounts in the lease rate for the assets. Mike Maguire, President International commented “The work undertaken to prepare rig 103 will enable us to provide real savings to our customer in drilling and logistic costs, as well as improve operational reliability and efficiency. This extension provides the foundation for work currently underway on formal agreements for the recently announced 50/50 joint company.” Forward-Looking Statements This Press Release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements.  Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions.  Many factors could cause the Corporation’s actual results, performance or achievements to vary from those described in this Press Release.  Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this Press Release include, among others, commodity prices and the impact they have on industry activity.  In addition to the risk factors set out above and elsewhere in this Press Release, readers are directed to the additional risk factors set out in the Corporation’s most recent Annual Information Form filed on SEDAR at www.sedar.com. The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this Press Release.  The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.  About High Arctic High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The Corporation’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada. For more information, please contact: Michael Binnion Interim President & CEO Phone: 403 807 7375 Email: michael.binnion@z6a.d3d.myftpupload.com Brian Peters Chief Financial Officer Phone: 587-318-2218 Email: brian.peters@z6a.d3d.myftpupload.com [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] Calgary, Canada – July 20, 2017 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Company”) announces that Mr. Thomas Alford has tendered his resignation, effective today, as High Arctic’s Interim President and CEO. In conjunction with his resignation Mr. Alford has also stepped down from High Arctic’s Board of Directors (“Board”).  Mr. Michael Binnion, Chairman of the Board, will temporarily assume his duties.  A special committee of the Board is leading the search for a permanent President and CEO and reviewing the Company’s growth opportunities. The Board would like to thank Mr. Alford for his interim leadership during the integration of Tervita’s Production Services division into High Arctic’s Canadian operations and wish him all the best in his future endeavors. High Arctic is also pleased to announce the appointment of Mr. Jim Hodgson to the Board and the Audit Committee. Mr. Hodgson is the Managing Director of Link NRG.  Prior to his current role, Mr. Hodgson was the Chief Financial Officer of Sino Gas & Energy Holdings Ltd. Previously, he was Chief Financial Officer and director of Stream Oil & Gas Ltd and Chief Executive Officer of United Oil Projects Company, Kuwait.  He received a Bachelor of Science (Chemistry) and an MBA (Finance/Marketing) from the University of Toronto and a Master of Science (Finance) from Leicester University in the UK. Mr. Binnion, Chairman, stated “We are very pleased with the addition of Mr. Hodgson to the Board. He is an experienced financial executive, business leader and corporate director, with experience in the oil and gas industry both in Canada and Internationally.” About High Arctic High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The Corporation’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry. High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada. For more information, please contact: Brian Peters Chief Financial Officer Phone: 587-318-2218 Email: brian.peters@z6a.d3d.myftpupload.com Michael Binnion Chairman of the Board Phone: 403-807-7375 Email: mbinnion@ruperts.ca [/fusion_text][/fusion_builder_column][/fusion_builder_row][/fusion_builder_container]

[fusion_builder_container hundred_percent=”no” hundred_percent_height=”no” hundred_percent_height_scroll=”no” hundred_percent_height_center_content=”yes” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” gradient_top_color=”” gradient_bottom_color=”” gradient_type=”vertical” gradient_direction=”0deg” gradient_force=”yes” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” enable_mobile=”no” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” video_preview_image=”” border_size=”” border_color=”” border_style=”solid” margin_top=”” margin_bottom=”” padding_top=”0px” padding_right=”10%” padding_bottom=”0px” padding_left=”10%”][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” border_size=”” border_color=”” border_style=”solid” border_position=”all” spacing=”yes” background_image=”” background_repeat=”no-repeat” padding_top=”” padding_right=”” padding_bottom=”” padding_left=”” margin_top=”0px” margin_bottom=”0px” class=”” id=”” animation_type=”” animation_speed=”0.3″ animation_direction=”left” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” center_content=”no” last=”no” min_height=”” hover_type=”none” link=””][fusion_text] Calgary, Canada – July 10, 2017 – High Arctic Energy Services Inc. (“High Arctic” or the “Company”) is pleased to provide an operational and financial update on its International Operations in Papua New Guinea (“PNG”). Following several contract extensions in relation to heli-portable rigs that are managed for a significant customer, High Arctic is now in a position to provide additional details on developments towards solidifying its position as the leading drilling services provider in PNG. High Arctic has been providing drilling services and related rentals to exploration and production companies in PNG for over ten years. PNG is one of the global low cost producers of liquid natural gas (“LNG”) and it continues to be one of the most competitive and geographically advantaged sources of LNG supply in a challenged hydrocarbon environment.  High Arctic’s business in PNG is in a strong position, and the Company is committed to continuing to strengthen its position as a top service provider to its customers in this strategic market. The Company has been in productive discussions with key stakeholders about how to meet its client’s needs for effective rig management and availability between its owned and operated rigs and potential new rig and service requirements in the country. This discussion has been against a backdrop of strengthening High Arctic’s business in the PNG market.   The global downturn in the energy economy has further impacted these discussions as High Arctic sought to simultaneously streamline its cost structure in order to deliver significant savings to its clients. New Joint Company and Contract Update   High Arctic is pleased to announce that it has entered into formal and exclusive negotiations to exchange an equal share of its owned rigs (rigs 102, 115 and 116) for an equal share of the rigs that it has historically managed for its key customer under long term management agreements (rigs 103, and 104) in a company to be jointly owned by High Arctic and its customer. High Arctic will provide the management of this joint company.  As part of the proposed arrangements, High Arctic will operate the rigs under a minimum three year exclusive call rig services agreement. As part of High Arctic’s continuing efforts to reduce costs and provide efficient operations to its customers to remain competitive in the current commodity environment, High Arctic has committed to reducing operating costs in the joint company. Correspondingly first year rates under the new rig services contract are likely to be approximately 20% to 23% less than under the previous contract.  It is contemplated there will be scope within the agreement for rates to rebalance in the event that the commodity environment recovers.  These rate reductions will not impact the Corporation’s existing contracts for rig 116 or High Arctic’s rental equipment in PNG. High Arctic also contemplates that the agreement will include two-way option clauses which would allow or require High Arctic to increase its interest in the proposed joint company over time. The proposed joint company will focus exclusively on rig ownership and High Arctic will focus on operational efficiencies and optimal rig performance. The Company’s significant business of providing rental equipment (e.g. rig mats, heavy and light equipment, etc.) to its customers in the oil and gas, mining and civil engineering sectors (including the proposed joint company) will continue to be wholly owned by High Arctic and will not be part of the proposed transaction.  It is anticipated that the discussion on the joint company could be concluded as soon as year-end, and High Arctic will provide additional details as they become available.  In the interim, the current contracts for the operation of rigs 103 and 104 are expected to be extended for one year at the new rates. Mike Maguire, President International commented “This joint company is an innovative solution to meeting our key customer’s chief driver of reducing well costs and providing cost efficient drilling solution in PNG. The PNG market is an extraordinary long-term energy sector opportunity. High Arctic has become the local domain expert delivering top tier drilling services in a challenging logistics region.   We are excited to complete negotiations on this complex transaction, as early as year-end to cement our position as a long term player in this market.” The agreements required to effect the proposed transaction will be subject to approval by High Arctic’s and the customer’s respective Boards of Directors. Fast Moving Rig Contract The Company is pleased to announce that its major client accepted a proposal for a new highly mobile land rig, subject to finalization of lease and drilling services agreements. This rig is expected to start working this fall on an initial six month term.  The project is to prove the efficacy of a small footprint rig for field optimization work in areas with or close to existing roads.  With success, the contract proposal has terms for extension and would roll in to the joint company. Foreign Currency Controls As the Company has previous disclosed in its Management’s Discussion and Analysis for the three months ended March 31, 2017 and 2016, High Arctic’s US dollar bank account has been re-approved under a Bank of Papua New Guinea review of its currency control regulations.   This will allow High Arctic to continue to operate in PNG on a US dollar basis and in Kina, the local PNG currency as appropriate and outlined under the regulations, provided that High Arctic seeks approval from the Bank of PNG for future customer contracts to be settled in US dollars on a contract by contract basis. Michael Binnion, Chairman commented further “We have been working in … Read more