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RED DEER, AB, Feb. 1 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") announced that it has completed a settlement with Sense EDM AS. As disclosed in its financial statements for the nine months ended September 30, 2007, High Arctic had a potential obligation to purchase four drilling rigs and to pay a cancellation fee of $900,000 on a fifth rig for an aggregate obligation estimated to be $18-20 million. High Arctic is pleased to report that a buyer has purchased the four drilling rigs from Sense EDM and High Arctic has been released from any obligation with respect to those rigs. High Arctic may still be required to pay the $900,000 cancellation fee for the fifth rig unless it or another buyer purchases that rig or a similar rig from Sense EDM by December 31, 2008.
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 High Arctic's Annual Information Form for the year ended December 31, 2006 and High Arctic'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. 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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