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.”
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:
Interim President & CEO
Chief Financial Officer