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.”
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:
Interim President & CEO
Phone: 403 807 7375
Chief Financial Officer