High Arctic Announces Proposed US$130 Million Bond Financing



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    Proceeds to repay existing credit facility and fund capital expenditures

    RED DEER, AB, June 22 /CNW/ - High Arctic Energy Services Trust (TSX:
HWO.UN) ("High Arctic") today announced that it has entered into an agreement
with Norwegian firms SEB Merchant Banking and Swedbank relating to the
arrangement of a bond issue (the "issue") of up to US$130 million.
    The issue will be marketed on a best efforts basis with a targeted
closing date no later than July 31, 2007. The bonds will be of a 5-year term,
are callable, will have a fixed interest rate estimated in the range of
10.25-10.50% and will be repayable on maturity. The terms of the issue also
provide for a carving out of security sufficient to support a US$25 million
credit facility.
    Proceeds of the issue will be used to repay a substantial portion of High
Arctic's existing credit facility and to fund High Arctic's capital
expenditure programs.
    "I am pleased that we have the opportunity to secure this long-term
stable source of financing," said Jed Wood, President and Chief Executive
Officer of High Arctic. "If closed, it will provide flexibility in managing
the growth of our business while allowing us to appropriately time our next
raise of equity capital."

    Forward-Looking Statements

    This news 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, including the completion of,
terms and use of proceeds of the issue, 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 MD&A and Annual Information Form
available on SEDAR. 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.

    About High Arctic

    High Arctic, through its subsidiaries, is a global provider of
specialized 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, Canada, High Arctic has Canadian operations in
Alberta, British Columbia and the Northwest Territories. International
operations are currently active in the Middle East and Asia.

    %SEDAR: 00022316E




For further information:

For further information: Jed Wood, President and Chief Executive
Officer, High Arctic Energy Services Trust, Tel: (403) 304-9825,
jed.wood@haes.ca

Organization Profile

High Arctic Energy Services Inc.

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