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RED DEER, AB, Jan. 13 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") today announced that it has sold three rigs for net proceeds of US$14.0 million. The rigs were not used in the business in 2009 and were part of the assets being actively marketed for sale. As a result, the sale should not have any impact on operating earnings going forward. The rigs have been delivered to the buyer and are in the process of being shipped to Asia.
The entire sales proceeds will be applied against the Corporation's senior credit facilities. The outstanding balance on the senior credit facilities will be approximately $51.5 million following the pay down. With this sale, High Arctic will have reduced its senior debt by almost $75 million during the past 20 months through asset sales including the sale of its interest in the Optimal Pressure Drilling Services joint venture. The sale is an important milestone for High Arctic as it has now successfully completed the sale of substantially all of those assets identified in 2008 as being surplus to the ongoing core business activities.
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 both the Corporation's Management Discussion and Analysis and Annual Information Form for the year ended December 31, 2008 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 provider of specialized oilfield equipment and services, including drilling, completion and workover operations. Based in Red Deer, Alberta, High Arctic has domestic operations throughout Western Canada and international operations primarily in Papua New Guinea.
SOURCE High Arctic Energy Services Inc.
For further information: For further information: Dennis Sykora, Chief Restructuring Officer, (403) 340-9825, email@example.com