High Arctic Energy Services Inc.

High Arctic Energy Services Inc.

July 21, 2005 15:05 ET

High Arctic Completes $89-Million Initial Public Offering

RED DEER, ALBERTA--(CCNMatthews - July 21, 2005) - High Arctic Energy Services Trust (TSX:HWO.UN) announced today that it has successfully completed its initial public offering. Trust units commenced trading today on the Toronto Stock Exchange under the symbol HWO.UN.

"We are extremely pleased to be entering a new chapter in High Arctic's growth story," said Jed Wood, President and Chief Executive Officer. "We are gratified by the market's confidence in our business and we plan to strengthen our position in the oilfield services industry by continuing to develop our technology, our equipment and our people."

A total of 8,996,572 trust units with an initial price of $10 per unit are issued and outstanding. The offering was sold through an underwriting syndicate led by Canaccord Capital. The proceeds of the offering are being used to reduce debt, make capital equipment purchases and for working capital.

The initial cash distribution to unitholders is anticipated to be $0.1185 for the period from July 21 to August 31, 2005, and is expected to be paid on or before September 15, 2005. Subsequently, the Trust intends to make regular monthly cash distributions of approximately $0.0875 per trust unit to produce an initial annual yield of 10.5 per cent.

High Arctic is a leading Canadian provider of oilfield equipment and services, including drilling, completion and workover operations. The Company'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 Argentina, Saudi Arabia, Oman, Dubai, Yemen, Tanzania, Thailand and Turkmenistan.

The final prospectus of High Arctic Energy Services Trust is available on SEDAR at www.sedar.com.

Forward-Looking Statements

This press release may contain forward-looking statements relating to expected future events and financial and operating results of the Fund 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 from time to time in the Fund's prospectus filed with the Canadian securities regulatory authorities. Due to the potential impact of these factors, the Fund 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.

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