Red Deer, Canada – August 11, 2011 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) today announced its operating and financial results for the second quarter and first six months of 2011.
Commenting on the results, Bruce Thiessen, High Arctic’s Chief Executive Officer stated: “Although the second quarter was down somewhat in terms of our operating margins and EBITDA(1), we remain optimistic moving forward based on the improvement in activity and pricing already experienced in our Canadian operation and the contract awards received in Papua New Guinea. The wet weather in western Canada setback many of the well site projects of our customers and prevented the movement of our equipment into many areas in the quarter. We anticipate increased Canadian activity in the second half based on indications from our customers and the pent up demand from the second quarter. In preparation for the busy season, we continue to plan for the industry wide shortage of qualified field personnel and are progressing on organizational initiatives to build additional crews. Additionally, we advanced our planned equipment maintenance and refurbishment program in the quarter to ensure the high quality standard of our fleet continues”.
“We are encouraged by recent contract extensions for Rigs 103 and 104 until December of 2013 in Papua New Guinea. These contracts, in addition to the contract for Rig 102 until May 2014, add further long term stability to our operation. The recent equipment rental contract awards as well as the deployment of our newly refurbished Rig 102 in the second quarter are also cause for optimism for the second half of this year.”
“We have made progress on many strategic initiatives to strengthen our organization and position us for long term success. Our twelve month trailing EBITDA was $32.2 million and our net debt(1) was $0.6 million at the end of June 2011. With available financial resources and a strong balance sheet, we are well positioned to pursue a new phase of strategic growth in a disciplined manner to add shareholder value.”
Effective January 1, 2011, High Arctic began reporting its financial results in accordance with International Financial Reporting Standards (“IFRS”). Prior year comparative amounts have been changed to reflect results as if the Corporation had always prepared its financial results using IFRS.
Executive Vice President and General Counsel
Phone: 403 340 9825