CALGARY, ALBERTA--(Marketwired - Oct. 31, 2016) -
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Tom Alford, President and CEO of 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 continues to see ongoing activity in its PNG operations with Rigs 103, 104 and 115. Rig 103 continues to operate under contract for a drilling program in the Western Province, which is expected to be completed in the fourth quarter of 2016. Activities for Rig 104 have recommenced following its temporary stand down due to seasonal weather delays in its area of operation. The rig is substantially rigged up on its next well, Muruk-1, and is expected to begin drilling in early November. Rig 115 is active on Antelope 7 and Rig 116 remains on standby under contract in Port Moresby.
In conjunction with the resumption of drilling activities for Rig 104, High Arctic also announces that it has entered into an agreement with its customer for an additional interim extension to its drilling and related services contracts for Rig 104 until January 31, 2017. Rig 103 remains under contract until the completion of its existing drilling program. Discussions are progressing with its customer towards a long term extension of its drilling and support services contract for Rigs 103 and 104.
Mr. Alford stated that "We believe that the pending closing of Exxon's purchase of InterOil is further support to Papua New Guinea's competitiveness in the global LNG market. These are exciting times in Papua New Guinea and we congratulate our customers on their continued progress towards the development of this world class asset." Additionally he commented that "We are pleased with the extension of the Rig 104 contract as it allows us to continue operations without disruption while negotiations with our customer around the terms of a longer term arrangement have continued. General market conditions continue to be challenging for oil and gas companies and High Arctic continues to work diligently to deliver to our customers the service quality and cost efficiencies that they need for sustained success in any operating environment."
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, with the recent acquisition of Tervita Production Services now provides well servicing and engineered services in addition to its 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.