High Arctic Signs 3 Year contract in Papua New Guinea
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RED DEER, AB, Nov. 30 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") is pleased to announce that it has signed a long term contract extension for Rig 102. Rig 102 is a heliportable hydraulic workover unit that has been in Papua New Guinea since 2008. The new contract runs until May 14, 2014, subject to a 90 day termination right in favour of the customer. The rig will undergo a substantial upgrade with the cost shared between High Arctic and its customer. High Arctic's share of the upgrade project is estimated at US$2.2 million. The plan is have the rig ready to begin operations in May, 2011.
Commenting on the new contract, Kevin Doran, Regional Manager for Australia/Asia Pacific, said, "The extension of this contract is an important step in expanding our commitment in Papua New Guinea. We have the team in place to deliver a successful upgrade on time and on budget and I am confident that our customer will be pleased with the enhanced capability of the rig. The next important step is the renewal of our primary drilling contracts that expire at the end of the year."
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 both the Corporation's Management Discussion and Analysis for the year ended December 31, 2009 and in the Annual Information Form for the year ended December 31, 2009 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, Alberta, High Arctic has domestic operations throughout Western Canada. International operations are currently active in Papua New Guinea.
For further information:
Morley Myden
Chief Financial Officer
(403) 340-9825
[email protected]
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