Red Deer, Canada – June 13, 2011 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to report the following positive developments in Papua New Guinea.

High Arctic has been awarded its largest contract to date to supply rig matting and related support services for the drilling program of a major operator in Papua New Guinea, this is in addition to recent contract awards by other operators with work programs in PNG. The Corporation has been developing the matting business through the use of “Dura-base” mats which are very well suited for the wet and boggy conditions prevalent in the country. The contract is for a firm 18 month term which will commence after High Arctic purchases the mats from the manufacturer in the USA and delivers them to the field. It expects to have the mats on rental by November 1, 2011. The monthly revenue from this new contract once fully operational is expected to be approximately $400,000, or $7.2 million over the 18 month term. This latest contract further advances the goals of expanding our customer base in Papua New Guinea, expanding our supply of mats and confirming our position as the premier mat supply company in PNG.

Commenting on the new contract, Kevin Doran, Vice President, International Operations, said, “I am excited about the long term growth prospects of our matting business and the rental opportunities in Papua New Guinea as we continue to receive enquiries from a wide range of potential users. This latest contract proves the mats have strong market acceptance in the country as they significantly enhance productivity, improve safety in the workplace and are environmentally sustainable.”

High Arctic has now received written confirmation from its principal customer in Papua New Guinea that the Rig 104 contract and the drilling support services contract will be firm commitments for their full three year term to December 17, 2013. The customer has confirmed that it will not exercise the termination for convenience clause in those contracts that was exercisable at any time up to June 30, 2011. Kevin Doran noted “the Rig 104 contract, along with the drilling support contract related to the supply of support personnel and rental equipment, are a key foundation to the business in Papua New Guinea and this decision affirms the continued support of this important customer”.

As previously announced, High Arctic has now completed an upgrade of its Rig 102 hydraulic workover rig. The upgrade was completed on budget and the rig is presently getting ready to work on its first well under a new three year contract. Services are expected to commence on June 15, 2011.

Forward-Looking Statements

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Corporation that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in both the Corporation’s Management Discussion and Analysis for the year ended December 31, 2010 and the Annual Information Form for the year ended December 31, 2010 found on SEDAR ( Due to the potential impact of these factors, the Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

About High Arctic

The Corporation, through its subsidiaries, is a 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 primarily in Papua New Guinea.

Further Information

Bruce Thiessen
Chief Executive Officer
Phone: 403 340 9825