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RED DEER, AB, June 26, 2012 /CNW/ - High Arctic Energy Services Inc.
(TSX: HWO) ("High Arctic" or the "Company") has received a letter of
award from its primary customer in Papua New Guinea to supply a new 104
man oilfield camp plus a 4 man "pioneer" camp. The heli-portable camp
is a new build that will be constructed in Dubai by a supplier with
considerable experience in supplying camps of this nature in PNG. A
number of design changes will be incorporated to substantially reduce
the footprint of the main camp and to make it easier to reassemble when
moving to a new location by helicopter. These design changes were the
result of a collaborative effort with the customer and should bring
substantial cost savings and environmental benefits by reducing the
size of the drilling locations. The pioneer camp is a self sufficient
camp suitable for a small crew to set up at a new location prior to the
arrival of the main camp.
The total capital cost of the main camp and pioneer camp is budgeted at
$4.6 million including transportation to PNG and is being constructed
under a fixed price contract. Delivery date in the field is planned
for November, 2012. The award is for a firm one year term with
demobilisation fees to apply if not extended beyond the one year
With this latest commitment, High Arctic has now committed approximately
$9.6 million during 2012 for growth capital expenditures in Papua New
Guinea. High Arctic has continued to add to its Durabase matting
rental fleet with the order of a further 1,700 mats during 2012 all of
which are committed to existing customers with delivery expected in the
third and fourth quarters of 2012.
This news release may contain forward-looking statements relating to
expected future events and financial and operating results of the
Company 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 both the Company's Management Discussion and Analysis for
the year ended December 31, 2011 and in the Annual Information Form for
the year ended December 31, 2011 found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Company 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.
About High Arctic
The Company is a global provider of specialized oilfield equipment and
services, including drilling, completion and workover operations.
Based in Red Deer, Alberta, High Arctic has domestic operations
throughout western Canada and international operations in Papua New
SOURCE High Arctic Energy Services Inc.
For further information:
Chief Financial Officer