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RED DEER, AB, July 31 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) (the "Company" or "High Arctic") today announced that it has sold a second RAPAD Rig. The RAPAD Rig was located in Tunisia and has been exported from that country at the buyer's expense. The Company recently completed a contract in Tunisia. The buyer previously purchased a Canadian based RAPAD Rig from the Company. The closing conditions have now been satisfied and closing will occur on payment of the purchase price due on August 1, 2008.
The sale is part of the previously announced plan to sell underutilized assets and use the proceeds to reduce debt and exiting Tunisia is consistent with the objective of focusing on the core business areas. The proceeds will be applied against the revolving credit facility which will bring the total debt repayments from asset sales to $24 million since June 6, 2008. As a result, High Arctic is well on its way to meeting the mandatory asset sales requirement of $25 million by September 30, 2008.
Mr. Jed Wood, President & CEO of High Arctic said, "We are very pleased with completing this sale and as a result we remain ahead of expectations with respect to debt retirement. Overall, our restructuring plan is on track and the future remains positive."
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 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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