High Arctic Energy Services Inc.

High Arctic Energy Services Inc.

August 05, 2005 08:46 ET

High Arctic Receives Integrated Project Management Contract

RED DEER, ALBERTA--(CCNMatthews - Aug. 5, 2005) - High Arctic Energy Services Trust (TSX:HWO.UN) ("the Trust") announced today that one of its wholly-owned operating subsidiaries has entered into a long-term Integrated Project Management Contract with Transeuro Energy Corp. of Vancouver.

Under the terms of the 36-month contract, High Arctic Energy Services LLC, of Dubai, United Arab Emirates, will manage Transeuro's worldwide concessions, including asset and operations management, development of work programs and authority for expenditures, and supplying services and equipment.

To date, High Arctic has been authorized to administer $1 million to continue its review of Transeuro's projects in Armenia, Papua New Guinea and Ukraine that have undergone a preliminary assessment during the past two months. An additional $6 million has been approved for High Arctic to utilize in the optimization of four wells located at Transeuro's Beaver River field in northeast British Columbia.

"We are looking forward to establishing a long-term working relationship with Transeuro over the next three years. Integrated project management is a growth area for High Arctic and this contract demonstrates our continuing focus on bundling our services to provide greater value to our customers," said Jed Wood, President and Chief Executive Officer.

The Trust, 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, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East and former Soviet Republics.

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.

Contact Information