CALGARY, Alberta, Oct. 30, 2017 (GLOBE NEWSWIRE) -- High Arctic Energy Services Inc. (TSX:HWO) (“High
Arctic” or the “Corporation”) announces that it has reached an agreement with its customer, a super major operator in Papua New
Guinea (“PNG”), on the take-or-pay contract for Rig 116.
The original contract signed with InterOil Corporation (“InterOil”) contemplated a two year take-or-pay drilling
services term from the spud of the first well. After the recent takeover of InterOil by High Arctic’s customer, the
customer commenced discussions with High Arctic in regards to this rig.
In an effort to work collaboratively with the customer with a view towards future services opportunities, the
Corporation has agreed to a deemed spud date of November 2nd, 2016. This deemed spud date coincides with the
commencement of drilling on Antelope 7 which was completed with Rig 115 at another customer’s request due to its proximity to the
wellsite location, however, this well could have been drilled with Rig 116 which would have resulted in the commencement of the two
year take-or-pay drilling services term. As a result the rig will remain under its take-or-pay contract until November 2,
2018.
In conjunction with the customer’s acquisition of InterOil and the associated drilling contracts, the customer
conducted a contractor qualification review for High Arctic related to future work in PNG. As a result of this review,
supported by High Arctic’s strong track record in PNG, the Corporation is pleased to announce that High Arctic has been recognized
as a qualified vendor providing High Arctic with the opportunity to participate in the bidding process for additional drilling and
related services in PNG beyond the contract for Rig 116.
Michael Binnion commented, “Being recognized as a qualified vendor is a testament to the tier one performance
and safety that High Arctic can be counted on in the PNG market. We are pleased that an equitable solution was found for both
High Arctic and our customer after the change in ownership of our former client.”
Forward-Looking Statements
This Press Release contains forward-looking statements. When used in this document, the words “may”,
“would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar
expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with
respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the
Corporation’s actual results, performance or achievements to vary from those described in this Press Release. Should one or
more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect,
actual results may vary materially from those described in this Press Release as intended, planned, anticipated, believed,
estimated or expected. Specific forward-looking statements in this Press Release include, among others, the Corporation’s
opportunity to bid on drilling and related services in PNG with the customer that has recognized the Corporation as a qualified
vendor. In addition to the risk factors set out above and elsewhere in this Press Release, readers are directed to the
additional risk factors set out in the Corporation’s most recent Annual Information Form filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this Press Release are expressly qualified in their entirety by this
cautionary statement. These statements are given only as of the date of this Press Release. The Corporation does not
assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except
as required by law.
About High Arctic
High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol “HWO”. The
Corporation’s principal focus is to provide drilling and specialized well completion services, equipment rentals and other services
to the oil and gas industry.
High Arctic’s largest operation is in Papua New Guinea where it provides drilling and specialized well
completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation
provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil
and natural gas exploration and production companies operating in Western Canada.
For more information, please contact:
Michael Binnion
Interim President & CEO
Phone: 403 807 7375
Email: michael.binnion@haes.ca
Brian Peters
Chief Financial Officer
Phone: 587-318-2218
Email: brian.peters@haes.ca
