High Arctic Energy Services Inc.

High Arctic Energy Services Inc.

July 27, 2005 09:08 ET

High Arctic Announces Exercise of Over-Allotment Option and Director Appointment

RED DEER, ALBERTA--(CCNMatthews - July 27, 2005) - High Arctic Energy Services Trust (TSX:HWO.UN) ("the Trust") announced today that the agency syndicate for its recent IPO -- led by Canaccord Capital Corporation and including Sprott Securities Inc., Lightyear Capital Inc., J.F. Mackie & Company Ltd., Haywood Securities Inc. and Wellington West Capital Markets Inc. -- has exercised its over-allotment option in full and that the Trust has appointed a new director to its board, subject to regulatory approval, if any.

Pursuant to the exercise of the over-allotment option, the Trust issued an additional 400,000 trust units at $10 per unit for gross proceeds of $4 million. On July 21, 2005, pursuant to its IPO, the Trust issued 8,000,000 trust units at $10.00 per unit for gross proceeds of $80 million.

"The agents' decision to exercise the over-allotment option is a positive event for High Arctic. We will use the additional proceeds for working capital to advance our strategic and technical capabilities," said Jed Wood, President and Chief Executive Officer.

The Trust also announced the appointment of Ian Mallory to its board of directors. Mr. Mallory, currently President of Pickworth Development Corporation, of Calgary, is an independent board member. Mr. Mallory has held a number of senior leadership positions in major energy companies and has served on the boards of various international companies since 1993. A former practising lawyer, he has degrees from Harvard, Cambridge and the University of Toronto. Mr. Mallory is currently an instructor at the University of Calgary's Haskayne School of Business.

"Ian has the experience and skills to make a valuable contribution to guiding the Trust's future. The board looks forward to having the benefit of his advice and insight," said Mr. Wood.

The Trust, through its subsidiaries, is a Canadian provider of 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, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently underway in Turkmenistan, Pakistan, Yemen, Iran, Saudi Arabia, Tanzania, United Arab Emirates, Thailand and Argentina.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Trust that involve risks and uncertainties. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including market and general economic conditions and the risks and uncertainties detailed in the Trust's prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Trust disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

This news release does not constitute an offer to sell securities, nor is it a solicitation of an offer to buy securities, in any jurisdiction. All sales will be made through registered securities dealers in jurisdictions where the offering has been qualified for distribution. The securities offered are not, and will not be, registered under the securities laws of the United States of America, nor any state thereof and may not be sold in the United States of America absent registration in the United States or the availability of an exemption from such registration.

Contact Information