CALGARY, CANADA--(Marketwired - June 29, 2016) -
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High Arctic Energy Services Inc. (TSX:HWO) ("High Arctic" or the "Company") is pleased to provide an update on its activities in Papua New Guinea ("PNG").
High Arctic welcomes the recent announcement of a proposed transaction to combine two of the Company's largest customers in PNG. These customers have declared they believe the combination will create stronger support for the construction of an additional LNG project. The proposed combination will result in Rigs 115 and 116 being under contract to the combined entity, in addition to Rigs 103 and 104, which High Arctic currently operates on behalf of one of the customers. High Arctic believes there will be opportunities for synergies and efficiencies for its rigs under a common operatorship and looks forward to working with its long term customer to realize these synergies.
Rig 103 is currently completing a drilling program in the Western Province, which is expected to be completed in the fourth quarter of 2016. Rig 104 is currently on standby awaiting the commencement of its next well, Muruk-1, which is expected to commence in the fourth quarter of 2016. Demobilization of Rig 115 from its last well has been completed and the rig will begin mobilization in July to drill Antelope 7. Rig 116 remains on standby in Port Moresby.
High Arctic also announces that it has entered into agreements with its customer for an interim extension to its drilling and related services contracts for Rig 104 until October 31, 2016. Rig 103's contract is also extended as part of the contract assignment to another customer to complete their drilling program in the Western Province. High Arctic continues to progress discussions with its customer towards a long-term extension of its drilling and support services contracts for Rigs 103 and 104.
Mr. Braun states, "These are exciting developments in Papua New Guinea and we congratulate our customers on their progress towards building a new LNG project in PNG which provides some of the lowest supply cost LNG in the world. We are proud to have been a part of the LNG development in PNG over the last nine years and are committed to continuing to provide strong safety and operational performance, which are so important in a remote location such as PNG. Our strong safety performance is exemplified by our recent receipt of the International Drilling Contractors Association Award for the best safety statistics for the Australasia onshore region in 2015."
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 snubbing services, nitrogen supplies and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information relating to future capital expenditures, demand for High Arctic's services and the sources and availability of funding. These forward-looking statements and information are based on certain key expectations and assumptions made by High Arctic. Although High Arctic believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as High Arctic cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, component parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; health, safety and environmental risks; exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; governmental regulations; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect High Arctic's operations or financial results are included in High Arctic's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and High Arctic does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.