High Arctic Amends Credit Facilities



    /NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN
    THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
    CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW/

    RED DEER, AB, March 11 /CNW/ - High Arctic Energy Services Inc. (TSX:
HWO) ("High Arctic" or the "Corporation") announced that it has signed an
amendment to its credit facilities. The Corporation currently owes
$126.4 million under its senior credit facilities. As explained in the
Corporation's Management Discussion and Analysis for the nine months ended
September 30, 2007, it was anticipated that the Corporation would require new
financing by February 10, 2008 of about $25 million to enable it to reduce its
debt to the levels required to meet its covenant requirements. One of those
covenant requirements was that the consolidated leverage ratio had to be 4:8
to 1:0 based on a calculation to be completed on February 11, 2008. Under the
terms of an amendment announced on February 8, 2008, that requirement was
extended to March 11, 2008. With the latest amendment, that reduced ratio
requirement has been further extended to April 11, 2008.
    The extended period to meet the reduced consolidated leverage requirement
allows the Corporation additional time to find sources of capital. The
alternatives being pursued by the Corporation include obtaining new credit
facilities, raising cash from the sale of assets, negotiating further
amendments with the current lenders or some combination thereof. The current
lenders have not made any commitment as to future amendments they may be
prepared to accept. The current lenders may require the Corporation to reduce
the current credit facility by an amount greater than $25 million. For the
Corporation to meet the April 10, 2008 requirement, the required payment could
exceed $50 million which the Corporation is unlikely to achieve. The
Corporation will issue further press releases as more information becomes
available.

    Forward-Looking Statements

    This news release may contain forward-looking statements relating to
expected future events and financial and operating results of the Corporation
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 Corporation's Management
Discussion and Analysis for the nine months ended September 30, 2007 and in
High Arctic's Annual Information Form for the year ended December 31, 2006 and
High Arctic's Information Circular dated May 29, 2007, all found on SEDAR
(www.sedar.com). Due to the potential impact of these factors, the Corporation
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 Corporation, through its subsidiaries, is a global provider of
specialized oilfield equipment and services, including drilling, completion
and workover operations. Based in Red Deer, High Arctic has domestic
operations in Alberta, British Columbia and the Northwest Territories.
International operations are currently active in Mexico, the Middle East,
Northern Africa and Asia.

    The TSX has not reviewed and does not accept responsibility for the
    adequacy or accuracy of this news release.

    %SEDAR: 00025582E




For further information:

For further information: Jed Wood, President and Chief Executive
Officer, High Arctic Energy Services Inc., Tel: (403) 340-9825,
jed.wood@haes.ca

Organization Profile

High Arctic Energy Services Inc.

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