Calgary, Canada – October 31, 2016 – Tom Alford, President and CEO of High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Company”) is pleased to provide an update on its activities in Papua New Guinea (“PNG”).
High Arctic continues to see ongoing activity in its PNG operations with Rigs 103, 104 and 115. Rig 103 continues to operate under contract for a drilling program in the Western Province, which is expected to be completed in the fourth quarter of 2016. Activities for Rig 104 have recommenced following its temporary stand down due to seasonal weather delays in its area of operation. The rig is substantially rigged up on its next well, Muruk-1, and is expected to begin drilling in early November. Rig 115 is active on Antelope 7 and Rig 116 remains on standby under contract in Port Moresby.
In conjunction with the resumption of drilling activities for Rig 104, High Arctic also announces that it has entered into an agreement with its customer for an additional interim extension to its drilling and related services contracts for Rig 104 until January 31, 2017. Rig 103 remains under contract until the completion of its existing drilling program. Discussions are progressing with its customer towards a long term extension of its drilling and support services contract for Rigs 103 and 104.
Mr. Alford stated that “We believe that the pending closing of Exxon’s purchase of InterOil is further support to Papua New Guinea’s competitiveness in the global LNG market. These are exciting times in Papua New Guinea and we congratulate our customers on their continued progress towards the development of this world class asset.” Additionally he commented that “We are pleased with the extension of the Rig 104 contract as it allows us to continue operations without disruption while negotiations with our customer around the terms of a longer term arrangement have continued. General market conditions continue to be challenging for oil and gas companies and High Arctic continues to work diligently to deliver to our customers the service quality and cost efficiencies that they need for sustained success in any operating environment.”
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, with the recent acquisition of Tervita Production Services now provides well servicing and engineered services in addition to its snubbing services, nitrogen supplies 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