High Arctic Announces Third Quarter Results

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Strong international revenue growth continues

RED DEER, AB, Nov. 15 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) (the "Corporation" or "High Arctic") today announced its results for the third quarter ended September 30, 2007.

Third Quarter Highlights:

-   International revenue increased by 169% to $17.2 million for the
    three months ended September 30, 2007, as compared to $6.4 million
    for the three months ended September 30, 2006.
-   A 4.3% increase in third quarter revenue from $27.8 million in the
    three months ended September 30, 2006 to $29.0 million in the same
    period in 2007 and a reduction in EBITDA from $9.5 million in the
    three months ended September 30, 2006 to $3.1 million in the same
    period in 2007.
-   Awarded an additional US$78-million contract for drilling operations
    in Papua New Guinea, bringing the anticipated total contract value in
    excess of US$160-million.
-   Commenced Underbalanced Drilling ("UBD") and Managed Pressure
    Drilling ("MPD") operations in Mexico, with the redeployment of
    Canadian assets.
-   Commenced operations in Kuwait on a five year contract, including a
    US$34-million extension, bringing the total contact value to US$68-
    million.
-   Mobilized a RAPAD(TM) Drilling Rig and commenced operations on a one-
    year contract in Tunisia.
-   Signed a Letter of Intent ("LOI") with Schlumberger to form a Joint
    Venture (Joint Venture contract executed on October 29, 2007).

"Ongoing concerns over natural gas commodity prices and the uncertainty surrounding Alberta royalty rates have continued to dramatically impact oilfield activity in Western Canada, including our Canadian utilization rates," said Jed Wood, President and CEO of High Arctic. "I am, however, very pleased with the increased efforts High Arctic has undertaken to profitably redeploy underutilized Canadian equipment into quality, long-term international contracts."

The earnings before interest, taxes, depreciation and amortization (EBITDA) in the three months ended September 30, 2007 was $3.1 million, compared to EBITDA of $9.5 million in the same period last year. For the nine months ended September 30, 2007, EBITDA was $5.5 million compared to $26.0 million for the nine months ended September 30, 2006. EBITDA in 2007 has been negatively affected by lower domestic revenues, greater competitive pressures in the Canadian market, costs associated with the start-up of new international projects and a large provision for a disputed account.

The net loss in the three months ended September 30, 2007 was $13.4 million, compared to net earnings of $5.9 million in the same period last year. For the nine months ended September 30, 2007, the net loss was $14.4 million compared to net earnings of $12.9 million for the nine months ended September 30, 2006.

"Our intention and efforts to expand internationally over the last 9 months are having the positive impact that we were expecting. Over the coming quarters, our focus will be on ensuring that we are operating efficiently and effectively throughout our six international areas of operations," said Mr. Wood.

The Corporation has restated its Financial Statements for the quarters ended March 31, 2007 and June 30, 2007 to more accurately reflect the allocation of income between quarters.

The Financial Statements and Management Discussion and Analysis dated September 30, 2007, along with the restated Financial Statements and Management Discussion and Analysis can be viewed on SEDAR at www.sedar.com under High Arctic Energy Services Inc.

Non-GAAP Measure

EBITDA (being earnings before the deduction of depreciation, amortization, interest expense or income taxes) is not a recognized measure under GAAP. Management believes that, in addition to net earnings, EBITDA is a useful supplemental measure of the Corporation's performance prior to consideration of how operations are financed or how results are taxed. Investors are cautioned that this should not be construed as an alternative to net earnings determined in accordance with GAAP as an indicator of the Corporation's performance. The Corporation's method of calculating EBITDA may differ from the methods used by other issuers and, accordingly, it may not be comparable to similarly titled measures used by other issuers.

Forward-Looking Statements

This news release may contain forward-looking statements relating to expected future events and financial and operating results of the Corporation 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 market and general economic conditions and the risks and uncertainties detailed in the Corporation's Management Discussion and Analysis for the nine months ended September 30, 2007 and in the Trust's Annual Information Form for the year ended December 31, 2006 and the Trust's Information Circular dated May 29, 2007, all found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Corporation 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

The Corporation, through its subsidiaries, is a global provider of specialized oilfield equipment and services, including drilling, completion and workover operations. High Arctic's new underbalanced drilling technology and equipment is recognized for its ability to improve oil and gas production capabilities and is expected to develop greater acceptance in international markets. Based in Red Deer, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East, Asia and Mexico.

The TSX has not reviewed and does not accept responsibility for the

adequacy or accuracy of this news release.

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