RED DEER, AB, March 14 /CNW/ - High Arctic Energy Services Trust (TSX:
HWO.UN) ("High Arctic" or the "Trust") today announced that it has executed an
agreement with its syndicate of lenders to amend the consolidated leverage
ratio covenant of its credit agreement with effect from December 31, 2006.
The amending agreement increases the maximum permitted consolidated
leverage ratio to 3.60:1.00 for the quarters ending December 31, 2006, and
March 31, 2007. For quarters ending June 30, 2007, and thereafter the maximum
permitted ratio is 2.75:1.00.
On February 26, 2007, the Trust announced that, as at December 31, 2006,
the Trust's preliminary financial estimates indicated it was in violation of
the consolidated leverage ratio (generally defined as total debt divided by
the 12-month trailing adjusted EBITDA) covenant of its credit agreement, which
allowed for a ratio of not greater than 3.00:1.00. The Trust has not yet
completed its financial statements for the period ending December 31, 2006,
but currently estimates that the ratio at December 31, 2006, will not exceed
the permitted level.
As also announced on February 26, 2007, discussions with an existing
lender to provide a $10 million short-term debt facility had commenced. Those
discussions have advanced and remain ongoing.
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, email@example.com