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High Arctic Announces Rig 103 Contract extension
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About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n THE UNITED STATES.  ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, Aug. 11, 2011 /CNW/ - High Arctic Energy Services Inc.\n (TSX: HWO) (\"High Arctic\" or the \"Corporation\") is pleased to report\n that it has signed a contract extension for Rig 103.  The contract\n extension extends the term for approximately 2 ½ years to December 17,\n 2013, which coincides with the term of Rig 104 and the related drilling\n support services contract.\n\n\nRig 103 is a heli-portable drilling rig operated by High Arctic in Papua\n New Guinea.  The rig is owned by High Arctic's principal customer in\n the country and is leased to High Arctic.  The term of the lease is\n also being extended to match the extension of the drilling contract.  \n High Arctic has operated Rig 103 in Papua New Guinea since 2007.  The\n rig has been active throughout the first half of 2011 drilling wells\n for two new customers in Papua New Guinea.  The last well was completed\n in late June and the rig is currently being prepared for mobilization\n to a new drilling location for further work with our principal customer\n expected to begin later in the third quarter.\n\n\nRig 103 will share drilling activity with Rig 104 for the balance of\n 2011 and into 2012 with only one of the rigs likely to operate at any\n one time. That situation is the same as was experienced for much of\n 2010.  The extension grants the customer the benefit of a lower warm\n stacking rate for one of the rigs whenever either of the rigs is not\n active.  A lower cold stacking rate has also been established for Rig\n 103 if the rig was to be stacked for a longer period, but at this time\n High Arctic does not anticipate such a scenario.\n\n\nThe customer has also contracted High Arctic's 160 ton Kobelco crane for\n a minimum of six months.  That crane was purchased new by High Arctic\n earlier this year and has completed a six month commitment with another\n customer. The lifting capacity and extended reach of the crane make it\n well suited for areas where access can be a problem such as unloading\n barges at riverside locations.  The crane is being deployed to a\n staging area ...