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CALGARY, May 1, 2015 /CNW/ - High Arctic Energy
Services Inc. (TSX: HWO) ("High Arctic" or the "Company") is
pleased to announce the award of two new contracts with a customer
for the supply of mats and additional rolling stock to support the
drilling operations of Rigs 115 and 116. The matting contract
is for the provision of a minimum of 2000 mats on a firm two year
term with the first 1000 commencing with the completion of Rig
115's mobilization. The Rolling Stock contract is for the provision
of cranes and tele-handlers on a firm two year term and will
commence with the arrival of equipment into PNG. The combined
annual revenue for these latest contracts will range between
US$4 million to in excess of
US$7 million on an annualized basis,
dependent upon the total number of mats deployed. The mats will be
drawn from High Arctic's existing inventory in PNG. The rolling
stock will be new equipment designed to handle the requirements of
Rigs 115 and 116.
High Arctic is also pleased to announce that Rig 115 has
recently arrived in PNG and is currently being mobilized to the
first drilling location in PNG. The rig is on a reduced
moving rate during the mobilization period which began mid March,
and will go on full operating rate once it is ready to spud the
first well. The two year contract term, with anticipated annualized
revenue of US$30 million, will begin
on spud which is targeted to occur mid May.
Tim Braun, High Arctic's CEO,
stated; "We are excited to have our drilling team in place and to
be nearing the commencement of drilling operations with Rig 115.
The execution of these contracts reinforces our optimism for
the PNG market amidst the downturn of global commodity prices".
Forward-Looking Statements
This news release may contain forward-looking statements
relating to expected future events and anticipated financial and
operating results of the Company that involve risks and
uncertainties. Actual results may differ materially from management
expectations, as projected in such forward-looking statements, for
a variety of reasons, including, but not limited to, market and
general economic conditions, and the risks and uncertainties
detailed in both the Company's Management Discussion and Analysis
for the year ended December 31, 2014
and the Annual Information Form for the year ended December 31, 2014 found on SEDAR (www.sedar.com).
Due to the potential impact of these factors, the Company disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, unless required by applicable 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 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.
SOURCE High Arctic Energy Services Inc.