News Releases

[fusion_builder_container type=”flex” hundred_percent=”no” equal_height_columns=”no” menu_anchor=”” hide_on_mobile=”small-visibility,medium-visibility,large-visibility” class=”” id=”” background_color=”” background_image=”” background_position=”center center” background_repeat=”no-repeat” fade=”no” background_parallax=”none” parallax_speed=”0.3″ video_mp4=”” video_webm=”” video_ogv=”” video_url=”” video_aspect_ratio=”16:9″ video_loop=”yes” video_mute=”yes” overlay_color=”” video_preview_image=”” border_color=”” border_style=”solid” padding_top=”” padding_bottom=”” padding_left=”” padding_right=””][fusion_builder_row][fusion_builder_column type=”1_1″ layout=”1_1″ background_position=”left top” background_color=”” 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=”true” min_height=”” hover_type=”none” link=”” border_sizes_top=”” border_sizes_bottom=”” border_sizes_left=”” border_sizes_right=”” first=”true”][fusion_text] Calgary, Alberta, August 1, 2022: High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” is pleased to announce that it has agreed to terms with its principal customer in Papua New Guinea (“PNG”) for a three-year contract renewal covering customer owned Heli-portable Drilling Rig 103 and High Arctic’s services related to the supply of personnel, camp accommodation and rental equipment to support the drilling operations. The renewals are effective August 1, 2022 and include options to further extend the contracts on the same terms and conditions beyond July 31, 2025. In late 2021, High Arctic’s principal PNG customer merged with one of the largest energy exploration and production companies operating in the Asia Pacific, to create a regional champion of quality, size and scale. Both companies have extensive history in PNG. The resulting company has large stakes in the two LNG projects as well as operatorship of all producing PNG oil fields and several gas fields supplying the existing PNG-LNG export facility. Mike Maguire, CEO of High Arctic, stated, “High Arctic has worked continuously with this principal customer since first arriving in Papua New Guinea in 2007. Together we have forged a strong partnership that set the benchmark for safe and efficient operations in the remote and logistically challenging PNG environment. We are proud to have continued our strong symbiotic relationship supporting their field operations through the challenges brought upon by Covid-19 and the recent transition of ownership. We are excited to be working closely with the new management team and are proud to remain their drilling service company of choice in PNG.” Key technical personnel have started deployment and work is underway to prepare Drilling Rig 103 and its leapfrog unit for recommencement of drilling in early Q4 2022. The terms of the contract renewals are substantially similar to those contained within previous contracts. This cornerstone contract is flexible and scalable to align with activity which positions High Arctic to respond quickly to future incremental drilling opportunities. This contract announcement follows recent positive developments that highlight the tremendous expansion potential for LNG production in PNG. On July 20, 2022, TotalEnergies, operator of the Papua-LNG joint venture, announced commencement of upstream FEED studies in PNG targeting a final investment decision on the two-train Papua-LNG project by the end of 2023, and commencement of production in 2027. Earlier this year ExxonMobil, operator of the PNG-LNG joint venture, announced the signing of a gas agreement for the development of the P’nyang gas field in the Western Province of PNG, which is anticipated to result in the addition of another train to the world class PNG-LNG export facility. Mike Maguire, CEO of High Arctic, commented, “Papua New Guinea is key to High Arctic’s long-term business strategy. There have been significant LNG investments in PNG made by large oil and gas companies. High Arctic is positioned well to support future investments given high barriers to entry due to the technical expertise required to operate the heli-portable drilling rigs in remote locations. High Arctic’s contract drilling service history in PNG includes our long-term principal customer and both major multi-national companies operating the two LNG project joint ventures, among many others. We are currently providing services to both our principal customer and the PNG-LNG operator, and we are pleased to be returning to consistent drilling operations.” All the rigs under High Arctic’s care have been maintained during the Covid-19 induced PNG drilling suspension and are in good preservation for quick redeployment into service. These include our principal customer’s other heli-portable Drilling Rig 104, High Arctic’s own versatile heli-portable Drilling Rigs 115 & 116 and our high-capacity heli-portable hydraulic workover unit Rig 102. 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, but are not limited to, statements pertaining to the following: for recommencement of drilling in early Q4 2022, tremendous expansion potential for LNG production in PNG, a final investment decision on the two-train Papua-LNG project by the end of 2023, the addition of another train to the world class PNG-LNG export facility, quick redeployment of the rigs under High Arctic’s control, and, returning to consistent drilling operations. 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. 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 an energy services provider. High Arctic is a market leader in Papua New Guinea providing drilling and specialized well completion services and supplies rental equipment including rig matting, camps, material handling and drilling support equipment. In western Canada High Arctic provides nitrogen services and … Read more

Calgary, Alberta, July 28, 2022: High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” is pleased to announce that it has closed the previously announced sale of High Arctic’s Canadian well servicing business to Precision Drilling Corporation (“Precision”) by asset purchase agreement for an aggregate purchase price of $38.2 million payable in cash (the “Well Servicing Transaction”). Additionally, the Corporation has closed the previously announced sale of High Arctic’s Canadian snubbing business to Team Snubbing Services Inc. (“Team”) by asset purchase agreement for 42% of the post-closing total outstanding shares in Team and a note receivable of $3.4 million (the “Snubbing Transaction”). Post-closing High Arctic retains its Ancillary Services Segment in Canada comprised of the Nitrogen Pumping business and a smaller Rentals business focused on pressure control while keeping the HAES Rental Services branding. High Arctic also retains its snubbing assets in Colorado, USA. These Ancillary Services businesses will be supported from our Whitecourt, Alberta facility, and the Corporation will retain a small corporate headquarters in Calgary, Canada. The Corporation expects to realize a significant reduction in Canadian overhead and G&A expenses of about $4.0 million annually. After Closing, the Company reports a cash balance of $24.5 million comprised of the initial $10.2 cash payment from Precision and $14.3 million pre-close cash on hand. Over the next six months these sale transactions will further increase cash as the Corporation collects an additional $3.0 million from retained working capital over the next 75 days, and the final $28.0 million cash payment is received from Precision in January 2023. Cash balances are offset by mortgage debt of $7.9 million. Upon receipt of the final payment from Precision, the Company expects to repay about $3.5 million of this mortgage debt. The Corporation confirms that no funding is available under its current undrawn revolving Credit Facility due to these sale transactions and the arrangement is being cancelled. High Arctic intends to fund working capital and capital expenditure needs from cash balances with a view to establish a new arrangement geared towards its Papua New Guinea (“PNG”) business in due course. Mike Maguire, CEO of High Arctic, said, “These two transactions represent the effective divestment of High Arctic’s Canadian Production Services and allows our management to streamline and develop a longer-term strategy for the remaining Canadian business and focus attention on the growth opportunities in PNG. We are excited about the opportunities for our Drilling Services segment in PNG as the next round of gas development projects materialize there. The timing of the receipt of proceeds from the transactions provides the opportunity for management to evaluate the need and sources for both working and growth capital in PNG. The Corporation has a history of returning surplus cash to shareholders and will consider capacity to distribute funds to shareholders.” The Well Servicing Transaction included High Arctic’s Canadian Well Servicing fleet marketed under the Concord Well Servicing brand comprising of 51 marketable rigs and 29 inactive and out of service rigs, as well as oilfield rental equipment associated with well servicing including hydraulic catwalks purchased in 2021. The consideration included $10.2 million immediately payable at closing and the remaining $28.0 million payable in January 2023. Title to four Alberta real estate locations owned by the Corporation will transfer to Precision on final payment, with High Arctic retaining owned Alberta properties in Whitecourt and Clairmont. Precision will assume the lease obligations for High Arctic’s properties in Cold Lake and Acheson. High Arctic’s Well Servicing employees, and the large majority of High Arctic’s Canadian field and office support personnel, have agreed to transfer employment to Precision. The Snubbing Transaction includes High Arctic’s Canadian Snubbing fleet comprising 7 marketable packages and 32 inactive and out of service snubbing units, underbalance hoists and associated support equipment. Commensurate with the Snubbing Transaction, High Arctic will appoint two directors to the 5-person board of Team, and an affiliate of Team will enter into a five-year lease of High Arctic’s owned property in Clairmont, Alberta on current market terms. High Arctic’s snubbing employees will transfer employment to Team. The Snubbing Transaction consideration comprises 420,000 common voting shares in Team, representing 42% of the post-closing total outstanding shares, and a convertible promissory note for $3.4 million with a five-year term, interest accruing at 4.5% from January 1, 2023, and principal repayments commencing July of 2024. Mike Maguire, CEO of High Arctic, said, “We are pleased that most of our affected employees have taken up employment with Precision and Team, and we are confident that their capability and focus on quality will benefit their new employers and set them up for career success. On behalf of High Arctic’s Board of Directors and management I acknowledge the work put in by all involved parties to realize these transactions and thank Paradigm Capital Inc. who acted as exclusive financial advisor for High Arctic on the Well Serving Transaction and DLA Piper (Canada) LLP who acted as legal advisor to High Arctic on both transactions.” 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, but are not limited to, statements pertaining to the following: collection of an additional $3.0 million over the next 75 days from retained working capital, realize a significant reduction in Canadian overhead and G&A expenses of about $4.0 million, establishing a new lending arrangement geared towards the … Read more

Calgary, Alberta, July 18, 2022: High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” has entered into an asset purchase agreement with Precision Drilling Corporation (“Precision”) to sell High Arctic’s Canadian well servicing business for an aggregate purchase price of $38.2 million payable in cash (the “Well Servicing Transaction”). Additionally, the Corporation has entered into an asset purchase agreement with Team Snubbing Services Inc. (“Team”) to sell High Arctic’s Canadian snubbing business for 42% of the post-closing total outstanding shares in Team and a note receivable of $3.4 million (the “Snubbing Transaction”). Both the Well Servicing Transaction and the Snubbing Transaction retain working capital, are subject to customary commercial closing conditions and are expected to close before the end of July 2022. Michael Binnion, Chairman of High Arctic, commented “After reflection on High Arctic’s core strength and future opportunities, the Board made a strategic decision to divest certain assets in Canada and focus on resurgent opportunities associated with our existing business in Papua New Guinea (“PNG”). PNG is a market where we have a dominant position, a history of high profit margins and free cash flow generation, and where the Corporation’s future fortunes are inextricably tied. We take great pride in the development of our Canadian well servicing and snubbing businesses. These transactions, we believe, set our employees up for success as most transition to a larger organization wherein their safety, service acumen and operational skill set them up for career success.” The Well Servicing Transaction includes High Arctic’s Canadian Well Servicing fleet marketed under the Concord Well Servicing brand comprising of 51 marketable rigs and 29 inactive and out of service rigs, as well as oilfield rental equipment associated with well servicing including 17 modern hydraulic catwalks purchased in 2021. The transaction will result in the transfer of High Arctic’s Well Servicing employees and a large majority of support personnel to Precision. The consideration includes $10.2 million payable at closing and the remaining $28.0 million payable in January 2023, with High Arctic expecting to retain approximately $3.0 million in closing working capital. Title to four Alberta real estate locations owned by the Corporation will transfer to Precision on final payment, with High Arctic retaining owned Alberta properties in Whitecourt and Clairmont. Precision will assume the lease obligations for High Arctic’s properties in Cold Lake and Acheson. Mike Maguire, CEO of High Arctic, said “Consolidation in the well servicing market is necessary to realize the scale and synergies to deliver profitability to shareholders. This transaction delivers to Precision high quality assets and people, and provides High Arctic with access to the capital tied up in our business. We are pleased to have found in Precision’s Well Servicing team, people who share a culture grounded in service quality and believe there is no better place to vend in Concord Well Servicing.” Precision’s President and CEO, Kevin Neveu, stated, “This acquisition significantly expands our well servicing division with high quality rigs and field personnel, strategic regional positioning, and alignment with key customers. High Arctic’s people are well known for their focus on safety and field execution and will complement Precision’s High Performance, High Value operating strategy. The Transaction accomplishes needed consolidation in the well servicing industry, providing greater opportunities for our combined team, while bolstering service capabilities for our customers. I am excited to welcome High Arctic employees to the Precision family.” Paradigm Capital Inc. is acting as exclusive financial advisor to High Arctic in connection with the Well Servicing Transaction. The Snubbing Transaction includes High Arctic’s Canadian Snubbing fleet comprising 7 marketable packages and 32 inactive and out of service snubbing units, underbalance hoists and associated support equipment. Commensurate with the Snubbing Transaction, High Arctic will appoint two directors to the 5-person board of Team, and an affiliate of Team will enter into a five-year lease of High Arctic’s owned property in Clairmont, Alberta on current market terms. The transaction will result in the transfer of High Arctic’s snubbing employees to Team. The Snubbing Transaction recognizes the contributed High Arctic assets at $11.1 million. As part of the consideration, High Arctic will receive a convertible promissory note from Team for $3.4 million with a five-year term, interest accruing at 4.5% from January 1, 2023 and principal repayments commencing July of 2024. High Arctic will receive the remainder of the consideration in the form of 420,000 common voting shares in Team, representing 42% of the post-closing total outstanding shares in Team. Mike Maguire, CEO of High Arctic, said “We are thrilled to become a significant shareholder of Team Snubbing Services Inc., a Canadian snubbing specialist on a rapid growth trajectory. Ownership in Team retains for our shareholders an exposure to the Canadian energy services sector, in a bespoke service offering that realizes high margins overseen by skilled and passionate management, while at the same time releasing our management to focus efforts elsewhere.” Mike Watts, CEO of Team, said “We are genuinely excited for the future of Team. The addition of the top-tier snubbing assets of High Arctic will enable us to realize our business plans for rapid expansion of operations in Canada and abroad. Team management has been working diligently over the past number of years to create a strong corporate and operational foundation given the uncertain times in the Canadian energy industry. This transaction has helped solidify management’s efforts and adds an exciting portfolio to the Team group. Through this transaction we get a strengthened balance sheet, board members with vast experience and knowledge of the energy services industry and capital markets, and employees who are as passionate about high quality, reliable and safe snubbing practices as we are.” Elimination of Production Services Segment. Combined, the two transactions represent the effective divestment of High Arctic’s Canadian Production Services segment. Post-closing, High Arctic will retain in Canada its Ancillary Services Segment comprised of the Nitrogen Pumping business and a smaller Rentals business focused on pressure control while keeping the HAES Rental Services branding. These Ancillary Services businesses will … Read more

CALGARY, Canada – May 13, 2022 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce the results of the annual general and special meeting of the shareholders of High Arctic held on May 12, 2022 (the “Meeting”). Three shareholders holding a total of 32,257,636 common shares of the Corporation were represented at the Meeting in person or proxy, representing approximately 66.19% of the total votes attached to all issued and outstanding common shares of the Corporation as of the record date on April 7, 2022. All matters put forth at the Meeting were approved. In respect of the election of directors, the shareholders approved fixing the number of directors at six with each nominee named in the Corporation’s management information circular dated April 7, 2022 being considered for election as directors. The detailed results of the vote for the election of directors, which was conducted by ballot, are set out below:   ⠀                                                         VOTES FOR              VOTES WITHHELD/ABSTAINED Michael R. Binnion                         98.87%                        1.13% ⠀                                                         (31,699,714)                (363,529) Simon P. D. Batcup                         98.67%                        1.33% ⠀                                                         (31,636,292)               (426,951) Daniel J. Bordessa                           97.90%                        2.10% ⠀                                                          (31,389,799)              (673,444) Honourable Joe Oliver                   98.43%                        1.57% ⠀                                                          (31,560,646)              (502,597) Ember W.M. Shmitt                        98.11%                         1.89% ⠀                                                          (31,456,107)              (607,136) Douglas J. Strong                            98.65%                        1.35% ⠀                                                         (31,629,914)               (433,329)   At the Meeting, the shareholders also approved a resolution appointing KPMG LLP, Chartered Professional Accountants, as auditors of the Corporation and a resolution approving the unallocated options under the Corporation’s stock option plan. About High Arctic High Arctic’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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The western Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of exploration and production companies. For further information, please contact: Lance Mierendorf Chief Financial Officer 1.587.318.2218 1.800.668.7143 High Arctic Energy Services Inc. Suite 2350, 330–5th Avenue SW Calgary, Alberta, Canada T2P 0L4 website: haes.ca Email: info@haes.ca

CALGARY, Canada – May 12, 2022, High Arctic Energy Services Inc. (TSX: HWO) (the “Corporation” or “High Arctic”) released its’ first quarter results today. Mike Maguire, Chief Executive Officer commented: “High Arctic built on its strong 2021 closing position this quarter, continuing the trend of increasing revenue and earnings, and coupled this with raises to contract pricing. The increased activity in PNG and growing contribution from the ongoing deployment of our refurbished and enhanced automated hydraulic catwalks in Canada were notable highlights. We were pleased with the successful return to operation of Rig-115 in Papua New Guinea. The legacy exploration well was professionally capped and abandoned fulfilling a key ESG commitment and added to High Arctic’s record of 5+ years of recordable safety incident free work in PNG. We look forward to increasing activity in PNG, where we anticipate activity levels in the coming years have potential to exceed our past peaks. We expect further announcements about advancement of the Papua LNG project, and the development of P’nyang and other PNG-LNG fields, among other projects to increase oil and gas production. Also noteworthy was the three-year contract renewal we recently announced with one of our largest and longest standing customers for the provision of well servicing rigs in Cold Lake, Alberta, on substantially improved terms and pricing. The strong demand for our services and current labour driven constraints are positive for the continuation of pricing increases and margin growth in our Canadian production services. Macro market conditions and business fundamentals support a very positive outlook for High Arctic into the second half of 2022 and beyond, and we are pleased to make the first payment under our reinstated monthly dividend this week.” Highlights The following highlights the Corporation’s results for Q1-2022: First quarter revenue of $28.7 million, EBITDA of $2.9 million, compared to $17.8 million and $1.2 million respectively in Q1-2021 and an improvement over Q4-2021 with $23.6 million and $1.2 million respectively. High Arctic recommenced drilling services activity in PNG during Q1-2022. PNG activity was the primary driver for growth in the Quarter as consolidated revenues rose by $10.9 million and 62% over Q1-2021. Oilfield operating services margin as a percent of revenue was modestly lower in Q1-2022 at 18.5% (Q1-2021 – 18.9%). Drilling and Ancillary services segments experienced improved margins, however, profitability decreased in High Arctic’s Canadian Production Services segment primarily due to cost inflation, elimination of Canadian Emergency Wage Subsidy (CEWS), and non-capital cost of preparing equipment for service. In April 2022 High Arctic announced a 3-year renewal of a key Production Services contract which includes a 20% increase to the base hours rig rate, increases to ancillary equipment and service pricing, provisions for fuel adjustments, and alignment of parameters to current market conditions. High Arctic announced recommencement of a monthly dividend payment of $0.005 per share commencing in May 2022. Strong liquidity with a working capital balance of $30.6 million, cash of $11.4 million, increasing access to funds under the revolving credit facility covenants and long-term debt of $7.7 million. Strategy Our 2022 strategic priorities build on the platform we created in 2021 and include: Safety excellence and quality service, Actions aimed at generating free cash flow including: Increased utilization of Corporation’s world-class fleet of equipment, Improved efficiency and work force productivity, and Operating cost control Development of new and existing employees to grow our workforce to meet demand, Pursuit of opportunities that secure the Corporation’s future as a lower emissions energy services provider, Pursuit of opportunities for growth and corporate transactions in well understood markets that enhance shareholder value, and Disciplined capital stewardship to improve returns including, divestitures, dividends and common share buybacks.——————– The unaudited interim consolidated financial statements (“Financial Statements”) and management discussion & analysis (“MD&A”) for the quarter ended March 31, 2022 will be available on SEDAR at www.sedar.com, and on High Arctic’s website at haes.ca. Non-IFRS measures, such as EBITDA, Adjusted EBITDA, EBITDA for purposes of long-term debt covenants, Adjusted net earnings (loss), Oilfield services operating margin, Operating margin %, Percent of revenue, Funds provided from operations, Working capital and Net cash are included in this News Release. See Non-IFRS Measures section, below. All amounts are denominated in Canadian dollars (“CAD”), unless otherwise indicated. Within this News Release, the three-months ended March 31, 2022 may be referred to as the “Quarter” or “Q1-2022”. The comparative three-months ended March 31, 2021 may be referred to as “Q1-2021”. References to other quarters may be presented as “QX-20XX” with X being the quarter/year to which the commentary relates. All amounts are expressed in thousands of Canadian dollars, unless otherwise noted.   5-3 Q1 PR

Calgary, Alberta, May 9, 2022: High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” intends to release its 2022 first quarter results on Thursday, May 12, 2022 after markets close and has scheduled a conference call to begin at 11:00 am MT (1:00 pm ET) on Friday, May 13, 2022. The conference call dial in numbers are 1-800-952-5114 or 416-641-6104 and the participant passcode is 5554579#. Participants joining from outside North America can find International dial-in numbers at: https://www.confsolutions.ca/ILT?oss=7P1R8009525114. An archived recording of the conference call will be available approximately two hours after the call ends by dialing 1-800-408-3053 and will remain available until June 13, 2022. An audio recording of the conference call will also be available within 24 hours on High Arctic’s website. The Corporation’s First Quarter Financial Statements and Management’s Discussion & Analysis will be posted to High Arctic’s website and SEDAR after the results are released.   About High Arctic High Arctic’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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The western Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of exploration and production companies. For further information, please contact: Lance Mierendorf Chief Financial Officer 1.587.318.2218 1.800.668.7143 High Arctic Energy Services Inc. Suite 2350, 330–5th Avenue SW Calgary, Alberta, Canada T2P 0L4 website: haes.ca Email: info@haes.ca Q1-2022-Results-Release-ANNOUNCEMENT-w-conf-call

Calgary, Alberta, April 11, 2022: High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” is pleased to announce that it has agreed to terms with a key customer to renew a significant contract in Canada. The contract is for the provision of well servicing rigs and ancillary equipment managed out of the Corporation’s Cold Lake, Alberta facility. Key features of the contract renewal include an approximate 20% increase to the base hourly rig rate, increases to ancillary equipment and service pricing, provision for fuel price adjustments, and alignment of other parameters to current market conditions. Further, the contract’s term has been extended to late 2025. Mike Maguire, CEO commented “This contract renewal and price adjustment is the result of substantive engagement and discussions over many months. The negotiated changes fairly reflect both the long-term commitment of our customer and the significantly changed market conditions. It balances a needed step-change improvement in underlying economic returns while locking in term, symbolic of rig crew and support personnel excellence. High Arctic is pleased to renew our engagement for a further three years and build on a long-standing customer relationship that extends back decades. This relationship is founded upon exceptional leadership and industry leading ESG standards that generates consistent operational performance. Activity with this customer is approaching 9 years and 2.1-million-man hours of work without a recordable safety incident. This safe work outcome is a true reflection of the partnership between our two companies and our shared focus on executing work of the highest quality.” About High Arctic High Arctic’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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The western 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. For further information, please contact: Lance Mierendorf, Chief Financial Officer 1.587.318.2218 1.800.668.7143 High Arctic Energy Services Inc. Suite 2350, 330–5th Avenue SW Calgary, Alberta, Canada T2P 0L4 website: haes.ca Email: info@haes.ca 220411 – High Arctic Renews Key Canadian Contract