/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 22 /CNW/ - High Arctic Energy Services Trust (the
"Trust") (TSX:HWO.UN) is pleased to announce that it has entered into
agreements with Canaccord Adams Limited ("Canaccord") pursuant to which
Canaccord has agreed to purchase, on a bought deal basis: (i) 5,225,442
purchase units of the Trust ("Purchase Units") at a price of $2.60 per
Purchase Unit for gross proceeds of $13,586,149.20 by way of private placement
(the "Private Placement"); and (ii) 10,921,746 trust units of the Trust
("Trust Units") at a price of $2.60 per Trust Unit for gross proceeds of
$28,396,539.60 by way of short form prospectus (the "Prospectus Offering").
Completion of the financings will be subject to all normal regulatory
approvals, including approval of the Toronto Stock Exchange.
Each Purchase Unit will consist of one Trust Unit and one quarter of one
Trust Unit purchase warrant ("Warrants"). Each whole Warrant will entitle the
holder thereof to purchase one Trust Unit at a price of $2.98 for a period of
18 months from the date of closing of the Private Placement. The Private
Placement is expected to close on or about March 27, 2007.
The Trust Units qualified by way of short form prospectus will be offered
in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba
and Ontario. The Prospectus Offering is expected to close on or about April
The net proceeds of the financings are expected to be used to complete
the Trust's capital build program, finance the Trust's international
expansion, reduce indebtedness and for general working capital purposes.
The Trust also announces that, subject to the approval of Canaccord,
acting reasonably, it intends to add an additional independent director to the
board of directors of High Arctic Energy Corp., the administrator of the
This news release shall not constitute an offer to sell or the
solicitation of any offer to buy, nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or sale would
be unlawful. The securities offered will not be and have not been registered
under the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") and may not be offered or sold in the United States absent
registration or an applicable exemption from the registration requirements of
the U.S. Securities Act and applicable state securities laws.
This announcement does not constitute an offer of securities, or form any
part of an offer to sell or issue, or any solicitation or any offer to
subscribe for or purchase any securities in the Trust in the United Kingdom
("UK"). Any such solicitation or offer would have to be made by way of an
admission document in the UK, and any decision to subscribe would be made
solely on the basis of the information contained in such a document. This
announcement has not been approved by an authorized person pursuant to Section
21 of the Financial Services and Markets Act 2000 ("FSMA") and accordingly, it
is being communicated in the UK only to persons to whom this announcement may
be communicated without contravening the financial promotion prohibition in
Section 21 of FSMA, including those persons who fall within Articles 19(5) and
49(2) of the Financial Services and Markets Act 2000 (Financial Promotions)
This news release contains forward-looking statements relating to the
anticipated closing dates of the financings, the anticipated use of the net
proceeds of the financings and the intention to add an additional director.
Although the Trust believes that the expectations reflected in these
forward-looking statements are reasonable, undue reliance should not be placed
on them and the Trust can give no assurance that they will prove to be
correct. Since forward-looking statements address future events and
conditions, by their very nature they involve inherent risks and
uncertainties. The closing of the financings could be delayed if the Trust is
not able to obtain the necessary regulatory and stock exchange approvals on
the timelines it has planned. The financings will not be completed at all if
these approvals are not obtained or some other condition to the closings is
The intended use of the net proceeds of the financings might change if
the board of directors of High Arctic Energy Corp., the administrator of the
Trust, determines that it would be in the best interests of the Trust to use
the proceeds for some other purpose.
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
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
For further information:
For further information: Jed Wood, President and Chief Executive
Officer, High Arctic Energy Services Trust, Tel: (403) 304-9825,