CALGARY, Alberta, March 20, 2020 – High Arctic Energy Services Inc. (“High Arctic”) announces today that it will be taking several proactive measures to respond to the uncertainty and expected slowdown of oilfield activity caused by the COVID-19 pandemic and recent changes in oil and gas supply and demand balances. The Company will be reducing fixed overhead and general administrative expenses to allow it to maintain and strengthen its already strong balance sheet.
In addition, the Company is suspending the monthly dividend until further notice. A dividend was declared on February 19, 2020 amounting to $0.0165 per share and paid on March 13, 2020. The total dividends paid in 2019 was $9.9 million amounting to $0.20 per share.
High Arctic is an industry leader in the markets it operates and believes the Production Services segment, with a large portion of its activities focused on thermal oil production services, will sustain a reasonable level of activity through the downturn. High Arctic has maintained a strong balance sheet with no debt, approximately $19 million of cash, and working capital of $38 million. This provides the Company with the resilience necessary to take advantage of opportunities in this difficult environment.
We expect that these actions taken by High Arctic allow it to strengthen its operations and continue to be an industry leader in these uncertain times.
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 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 Canadian and US operations provide 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 and the United States.
For further information contact:
J. Cameron Bailey
Chief Executive Officer
Vice President Finance & Interim Chief Financial Officer