Calgary Alberta, August 8, 2019 – High Arctic Energy Services Inc. (TSX: HWO) – “High Arctic” or the “Corporation” is pleased to announce its 2019 second quarter results.
Mr. J. Cameron Bailey, High Arctic’s CEO stated: “Our High Arctic team both in North America and in Papua New Guinea continues to operate with the utmost commitment of consistently delivering the highest quality of service with industry leading safety standards at fair and reasonable prices. I am very proud of our team and want to acknowledge their outstanding performance of operating without a single recordable injury year to date.
Our financial results have lagged primarily due to the end of the contract for Rig 116 in Papua New Guinea, slower activity in Canada and the longer than expected time to ramp-up activities in the United States.
Well Servicing in Canada achieved some modest gains during the quarter, notwithstanding a prolonged spring breakup. The acquisition of Precision Drilling snubbing assets has allowed High Arctic to consolidate 60% of the pressure services market in Canada which we will enjoy the benefits of in future periods.
In Papua New Guinea, we continue to maintain the quality and readiness of our fleet in preparation of an expected ramp up of activity in advance of the planned expansion of the LNG facilities. A change in leadership of the government in PNG has introduced a level of uncertainty in final contracting related to the LNG expansion potentially delaying investment decisions and commencement of field activities.
We have recently made some substantial inroads to securing consistent well service work in the United States and are extremely excited to be partnering with several new customers.”
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