High Arctic Energy Services Inc T.HWO

Team snubbing is on a tear too, we got dividend + RoC

[Resilience2]

That will only increase over time. 

They went from 5/6 teams operating now to 10 teams and are looking to expand in the US and Internationally.

This is a high tech/skill business, not easily replicated. As we go along dividends will increase and can be used to help pay our CAD business dividend together with the rental business. 

Also confirmed during the conf call that the plan is a straight issue of PNG shares to shareholders w/o any rights needed to be bought like in the previous plan. That, together with the PNG company being publicly listed, takes most if not all the challnges away from the previous proposal. 

Canada now also becomes a possible merger or buy-out candidate so there's 2 ways to get value; as divco over time or a buy-out over time where the team snubbing 42% will add a lot of value to this part, together with the tax shield and rental business. 

Also the interest income of the cash hoard (and ~ $ 360.000 dividend from Team Snubbing) basically paid a significant chunk of the Delta acquisition. 

Lastly they said they were very confident in the low end of the Capital Return but will be working towards the high end. 

I don't think we could have ended up in a much better place. 

R.

[colourama]

All in all sounds very promising! The key question is, what is an appropriate value to place on the company, as it stands now? We are still trading below working capital, and I think not enough value has been placed on the current and future prospects for the Canadian business, which is much less speculative than PNG at the moment. If they institute the 0.005/month dividend again, at this price

[longrun86]

Valuation is certainly an art. For what it is worth, my high level math regarding the share price is as follows:    Low  Medium High   Notes Cash           50,000,000