Five-year agreement with national oil company; Dubai contract extended
RED DEER, AB, March 26 /CNW/ - High Arctic Energy Services Trust (TSX:
HWO.UN) ("High Arctic" or the "Trust") today announced it has been awarded a
much anticipated five-year contract with Kuwait Oil Company (KOC), the
country's national oil company, to provide services for workover operations.
Snubbing and hydraulic workover operations in various KOC fields are
expected to begin in the second quarter of 2007. The contract was based on a
bid submitted in August 2006 and its value is estimated at US$34 million over
High Arctic will redeploy existing equipment from its Canadian operations
into the region to meet the terms of the contract, and no new assets are
expected to be required.
"This is a major hydraulic workover contract awarded by KOC and we are
pleased that our bid efforts during the past months have been successful,"
said Jed Wood, President and Chief Executive Officer of High Arctic. "This
contract will have minimal start-up expenses and it provides long-term revenue
stability. We are advancing our international growth strategy while also
increasing our equipment utilization."
High Arctic also announced that it has received a one-year extension on
its contract with Margham Dubai Establishment to provide hydraulic workover
operations at the Margham field in Dubai.
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 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
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, south-east Asia, and former Soviet
For further information:
For further information: Shaun Peesker, Chief Financial Officer, High
Arctic Energy Services Trust, Tel: (403) 309-5657, firstname.lastname@example.org