High Arctic Corporate Update



    
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    RED DEER, AB, June 15 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)
("High Arctic" or the "Corporation") today announced that it is in continued
discussions with its lenders with respect to further extensions of its credit
facilities. As announced on May 1, 2009, the Corporation had received an
extension of the maturity date of its senior facilities until June 12, 2009.
The June 12th date was selected with the hope that it would allow sufficient
time to complete the sale of High Arctic's interest in the Optimal joint
venture. The proceeds of the sale will go to reduce debt, which will have a
material impact on setting the debt covenants and repayment obligations going
forward.
    High Arctic believes it is still on track to complete the Optimal sale
and has been working with the purchaser to complete the definitive sale
agreements and to ensure compliance with the requirements of the relevant
foreign jurisdictions including Mexico. However, a corporation controlled by
the former Chief Executive Officer of the Corporation, Mr. Jed Wood, has
asserted that it has a security interest over High Arctic's Optimal interest
that was registered as part of a $2 million loan advanced by that corporation
to High Arctic in October, 2007. High Arctic does not agree that the
particular legal entity holding the Optimal interest has ever granted or
agreed to grant security to Mr. Wood's corporation. High Arctic and its
lenders are actively reviewing options to resolve the matter as expeditiously
as possible.
    Mr. Wood has also commenced a legal action against High Arctic to collect
a second $2 million loan that purportedly was made by him personally in
January, 2007. The Corporation is defending that action on several grounds
including that the loan is subject to the subordination agreement signed by
Mr. Wood's corporation with the senior lenders. The Corporation believes it
has made an adequate accrual in its financial statements, the particulars of
which are noted in the March 31, 2009 financial statements, for any amounts
owing to Mr. Wood and his corporation.
    The Corporation hopes that it can resolve these issues in a manner that
balances the interests of all of its lenders. Additional press releases will
be issued by the Corporation as material events occur with respect to the
above mentioned issues.

    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 year ended December 31, 2008 and in High
Arctic's Annual Information Form for the year ended December 31, 2008 and High
Arctic's Information Circular dated April 6, 2009, 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 primarily in Alberta, British Columbia and the Northwest
Territories. International operations are currently active in Mexico 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: Dennis Sykora, Chief Restructuring Officer,
(403) 340-9825

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High Arctic Energy Services Inc.

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