High Arctic Energy Services Inc T.HWO

PNG restart in Q4

[Possibleidiot01]

Yahoo.

[AVALONSHARK]

This is the moment we have been waiting for sincle april 2020 !! Consistent drilling to restart in PNG. Rig 104 which is owned by OilSearch/Santos should find a contract within the next 6 months as no new drilling has happend to feed PNG-LNG. High Arctic's own rigs 115-116 should find some project with Total's FEED work early next year. With $56 million in cash and such a high margin

[DudeRancher1953]

I share your optimism and am considering adding to my position. With Canadian operations essentially gone (except for investment in Team Snubbing), it would seem that a substantial reduction in G&A might be ahead. No numbers seem to be available yet. Any thoughts on that?

[Stonksonlyup90]

I'm less concerned with putting a hard $ figure on SGA; I think the days of 'cut SGA to survive' are past us.. don't get me wrong, I don't want a bloated organization. However, I think the focus should be on the ramp up of drilling in PNG again (the more high profit revenue stream). The recent Press Release did quote $4M of annual SGA savings from the transactions. I think the

[AVALONSHARK]

Yes $4 mil reduction in G&A in Canada as indicated in the previous release. PNG rig re-activation story will unfold over the next few quarters given the current dynamics within the LNG market. I foresee all rigs to be re-activated by year end 2023. What I am not able to fully wrap my head around is what will they do with so much cash on their balance sheet. Assuming they again announce

[JonathanJSmith]

Also, the question is how much revenue can they produce with all four rigs operating? My guess is around $200MM/yr (including their petite Canadian ops). At 10% margin, they will earn enough CF to sustain a $0.20/yr divvy (which was their pre-covid amount). I agree that FY2023 will be the year for these guys to start to rock'n'roll.  I'm curious about Q32022 numbers - they no