2014: Investing in PNGhttps://haes.ca/high-arctic-completes-previously-announced-acquisition-two-drilling-rigs-share-issuance/ Calgary, Canada – July 28, 2014 – High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Corporation”) is pleased to announce that it has completed the previously announced acquisition (the “Acquisition”) of two heli-portable drilling rigs and associated ancillary equipment for approximately USD$29 million. The total commitment to purchase, deliver, upgrade and commission the two drilling rigs has been estimated at USD $52 million. The rigs are currently on route to Houston, Texas to be upgraded and commissioned. Rig 115 will be completed first and then shipped to Papua New Guinea (“PNG”) to be deployed under the previously announced two year drilling contract with an anticipated first spud date in early 2015. Efforts continue to secure a contract for Rig 116 in PNG.
The Acquisition was partially funded with a bought deal public financing (the “Offering”) through a syndicate of underwriters led by National Bank Financial Inc. that included PI Financial Corp., AltaCorp Inc. and Lightyear Capital Inc., and which closed on June 11, 2014. Pursuant to the Offering, High Arctic issued 5,051,000 subscription receipts (the “Subscription Receipts“) at a price of $4.95 per Subscription Receipt for gross proceeds of approximately CND$25 million. In accordance with their terms, each Subscription Receipt was exchanged for one common share of the Corporation (“Common Share”) on July 28, 2014 upon closing of the Acquisition and the proceeds from the sale of the Subscription Receipts were released from escrow. Holders of Subscription Receipts are not required to take any action in order to receive the Common Shares to which they are entitled. Holders of the Subscription Receipts shall receive an amount equal to the $0.015 per Common Share dividend that was paid on July 14, 2014 to holders of record at June 30, 2014. This amount will be paid on July 28, 2014 to the holders of Subscription Receipts on the exchange date.
At July 28, 2014, High Arctic has 55,434,952 Common Shares outstanding, including the Common Shares issued pursuant to the Subscription Receipts.
Share count now is 48,733,145.