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RED DEER, AB, March 27 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) (the "Company" or "High Arctic") today announced that its wholly owned subsidiary, High Arctic Energy Services PNG Limited, has been awarded a Hydraulic Workover Services Contract ("the Contract") with a subsidiary of Oil Search Limited (ASX:OSH) ("OSL") for one of its Hydraulic Workover Rigs ("Rig 102") in Papua New Guinea.
The initial term of the contract is one year, with two further one-year extension options. Revenues for the contract, including extensions, are estimated to be in excess of US$45-million. Rig 102 is currently being mobilized from Dubai to Papua New Guinea.
President and CEO, Jed Wood, said "this latest contract award is consistent with High Arctic's restructuring committee's mandate to re-deploy underutilized assets into core operating areas. The Company's focus is to take advantage of asset re-deployment that increases the Company's operating efficiencies. We are confident that this new contract with OSL is another positive step in achieving our mandate, through the application of High Arctic's workover expertise and fit-for-purpose equipment".
Forward-Looking Statements
This news release may contain forward-looking statements relating to expected future events and 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 market and general economic conditions and the risks and uncertainties detailed in the Company's Management Discussion and Analysis for the year ended December 31, 2007 found on SEDAR (www.sedar.com) and in the Company's Annual Information Form for the year ended December 31, 2007 that will be filed on SEDAR. 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
The Corporation, through its subsidiaries, is a global provider of specialized oilfield equipment and services, including drilling, completion and workover operations. Based in Red Deer, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in Mexico, the Middle East, Northern Africa and Asia.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
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