High Arctic Energy Services Inc.
TSX : HWO

High Arctic Energy Services Inc.

November 09, 2007 14:34 ET

High Arctic Energy Services Inc. Announces Re-Pricing of Unsecured Convertible Debentures to Be Issued Pursuant to Private Placement

RED DEER, ALBERTA--(Marketwire - Nov. 9, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW.

High Arctic Energy Services Inc. ("High Arctic") (TSX:HWO) announces that further to its press release dated October 26, 2007, the conversion price of the unsecured convertible debentures (the "Debentures") has been re-priced to $1.62 per share (being the volume weighted average trading price of the High Arctic common shares on 25 October 2007).

In the event that the maximum amount of Debentures are issued pursuant to the Offering, a total of 21,296,296 common shares may be issued on the conversion of the Debentures, or 50.2% of the Company's current issued and outstanding common shares.

The closing of the offering is subject to agreement of formal documentation setting out the full terms and conditions of the Debentures. The offering is expected to close on November 13, 2007.

This news release shall not constitute an offer to sell or the solicitation of any offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities offered will not be and have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the U.S. Securities Act and applicable state securities laws.

This announcement does not constitute an offer of securities, or form any part of an offer to sell or issue, or any solicitation or any offer to subscribe for or purchase any securities in High Arctic in the United Kingdom ("UK"). Any such solicitation or offer would have to be made by way of an admission document in the UK, and any decision to subscribe would be made solely on the basis of the information contained in such a document. This announcement has not been approved by an authorized person pursuant to Section 21 of the Financial Services and Markets Act 2000 ("FSMA") and accordingly, it is being communicated in the UK only to persons to whom this announcement may be communicated without contravening the financial promotion prohibition in Section 21 of FSMA, including those persons who fall within Articles 19(5) and 49(2) of the FSMA 2000 (Financial Promotions) Order 2005.

Forward-Looking Statements

This news release contains forward-looking statements relating to the anticipated closing dates of the Placing and the anticipated use of the net proceeds. Although High Arctic believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them and High Arctic can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. The closing of the Placing could be delayed if High Arctic is not able to obtain the necessary regulatory and stock exchange approvals on the timelines it has planned. The Placing will not be completed at all if these approvals are not obtained or some other condition to the closings is not satisfied.

About High Arctic

High Arctic, through its subsidiaries, is a global provider of underbalanced oilfield equipment and services, including drilling, completion and workover operations. High Arctic's new underbalanced drilling technology and equipment is recognized for its ability to improve oil and gas production capabilities and is expected to develop greater acceptance in international markets. Based in Red Deer, Alberta, Canada, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East, and Asia.

The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.

Contact Information

  • High Arctic Energy Services Inc.
    Jed Wood
    (403) 340-9825
    or
    Canaccord Adams Limited
    Jeffrey Auld
    +44 (0) 20 7050 6500
    or
    Canaccord Adams Limited
    Clayton Bush
    +44 (0) 20 7050 6500