Business
High Arctic Strengthens Its Position in Papua New Guinea
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About this update from High Arctic Energy Services Inc
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN\n\n\nTHE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY\n\n\nCONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/\n\n\nRED DEER, AB, June 4 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)\n("High Arctic" or "the Company") today has been awarded its fourth drilling\nservices contract (the "Contract") with a subsidiary of Oil Search Limited\n(ASX: OSH) ("OSL") in Papua New Guinea. The Contract is for Rig 104, which is\na state-of-the art heli-portable drilling rig.\n\n\nRig 104 is currently under construction by OSL in China. Under the\nContract, High Arctic is providing project management services in China with\nrespect to the construction, commissioning and mobilization of the rig to\nPapua New Guinea, with an anticipated first spud date in the fourth quarter of\n2008.\n\n\nThe initial term of the Contract is for two years from completion of\nmobilization, with two successive one-year option terms. Revenues are\nestimated to be over US$25 million per annum. As a condition of the contract,\nHigh Arctic and OSL will enter into a lease agreement under which High Arctic\nwill lease the rig and assume full management responsibility. This latest\naward follows the previously announced contracts with OSL in February and\nAugust 2007 for the management and operation of Rigs 101 and 103 respectively,\nas well as a contract for a Hydraulic Workover Rig announced in March 2008.\nThe annualized revenue for all contracts is estimated at US$80-million.\n\n\n"Papua New Guinea is one of the world's premier exploitation areas and we\nare very proud to be exceeding our expectations through the Rig 104 contract,"\nsaid Jed Wood, President and Chief Executive Officer of High Arctic. "Beyond\nthe significant revenue already being generated with OSL, the latest contract\naward further demonstrates our ability to operate in the international arena.\nAs the primary drilling contractor in Papua New Guinea, High Arctic is\nwell-positioned to benefit from increased exploration and production activity\nin this exciting region, particularly in light of the recent Liquefied Natural\nGas and exploration announcements by a consortium of major integrated oil\ncompanies."\n\n\nOSL is the fourth-largest listed e...