High Arctic Energy Services Inc.

High Arctic Energy Services Inc.

November 13, 2007 14:20 ET

High Arctic Energy Services Inc. Closes C$23 Million Private Placement

RED DEER, ALBERTA--(Marketwire - Nov. 13, 2007) -


High Arctic Energy Services Inc. ("High Arctic") (TSX:HWO) is pleased to announce that it has closed its previously announced private placement, on a bought deal basis, of an aggregate of C$23 million aggregate principal amount of 12.0 percent unsecured convertible debentures due 31 December 2012 (the "Debentures") to qualified investors in the United Kingdom, USA and Canada (the "Placing"). As previously announced, Canaccord Adams Limited ("Canaccord") acted as underwriter for the Placing. The conversion price of the Debentures is equal to C$1.62 per share (being the volume weighted average trading price of the High Arctic common shares on 25 October 2007), subject to the terms and conditions set out in the certificates representing the Debentures. In addition, the Corporation has granted Canaccord an option entitling Canaccord to purchase an additional C$10 million of principal amount of the Debentures for a period expiring 72 hours following the closing of the Placing (the "Agent's Option") as well as a greenshoe representing 15% of the total principal amount of Debentures sold including pursuant to the Agent's Option. The Debentures and the underlying common shares of High Arctic shall be subject to a statutory four-month hold period expiring March 14, 2008.

The proceeds of the Placing will be used to finance the joint venture agreement with the Schlumberger group (the details of which were set out in a press release dated October 29, 2007) and to provide additional working capital for High Arctic.

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 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
    Canaccord Adams Limited
    Jeffrey Auld
    +44 (0) 20 7050 6500
    Canaccord Adams Limited
    Adam Janikowski
    +44 (0) 20 7050 6500