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THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY
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RED DEER, AB, Feb. 1 /CNW/ - High Arctic Energy Services Inc. ("High
Arctic" or the "Corporation") announced today that certain of its subsidiaries
and affiliates have filed a Statement of Defence and a Statement of
Counterclaim in the Supreme Court of British Columbia in respect of its
ongoing legal dispute with Transeuro Energy Corp. The filings will serve to
consolidate the previously announced claim filed by High Arctic Energy
Services L.P. in the Court of Queen's Bench of Alberta on May 7, 2007 with the
claim filed by Transeuro Energy Corp. on that same date in the Supreme Court
of British Columbia. The dispute relates to services provided to Transeuro by
subsidiaries of High Arctic in Canada, Armenia, Ukraine and Papua New Guinea.
The previous claim filed by High Arctic Energy Services LP related solely to
the activities in Canada whereas the Statement of Counterclaim now makes
claims for all areas of dispute.
High Arctic Energy Services LP provided drilling services in late 2006
and 2007 to Transeuro at a well location in the area of Beaver River, British
Columbia. The claim for unpaid services is $14.2 million. Transeuro has
asserted, among other things, that it has been overcharged for the services.
The claims outside of Canada relate to services provided by High Arctic
Energy Service LLC, a subsidiary located in Dubai, United Arab Emirates. In
addition to the claims described below, High Arctic Energy Service LLC has
claimed about US$2.3 million related to unpaid invoices for services provided
and expenses incurred primarily related to personnel on the payroll of High
Arctic providing services exclusively to Transeuro.
The claim in Armenia relates to the purchase and refurbishment of a
drilling rig. High Arctic Energy Service LLC supplied the funds to purchase
the drilling rig and supplied parts and services to refurbish it with the
intention that High Arctic would own the rig and use it to complete a drilling
program for Transeuro in Armenia. Transeuro has denied High Arctic access to
the rig and has been using the rig in its drilling program. High Arctic Energy
Service LLC is seeking US$5.4 million as compensation for the rig or delivery
of the rig with compensation for its use.
The claim in Ukraine relates primarily to equipment supplied by High
Arctic Energy Service LLC for use on a drilling rig contracted by Transeuro.
High Arctic Energy Service LLC has claimed that it is owed rent on the
equipment of US$2.9 million to December 31, 2007 or is entitled to the value
of the equipment of US$2.1 million.
The claim in Papua New Guinea relates to an agreement to supply a
heliportable drilling rig to complete a drilling program for Transeuro. High
Arctic proceeded with the purchase of a new build rig and reported an
impairment loss of $7.5million in its September 30, 2007 financial statements.
High Arctic Energy Service LLC is seeking damages related to the impairment
loss on the rig and cancellation of the drilling contract.
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 nine months ended September 30, 2007 and in
High Arctic's Annual Information Form for the year ended December 31, 2006 and
High Arctic's Information Circular dated May 29, 2007, 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 in Alberta, British Columbia and the Northwest Territories.
International operations are currently active in Mexico, the Middle East,
Northern Africa and Asia. For more information visit
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 Inc., Tel: (403) 340-9825, Fax: (403)
340-1047, email@example.com; Peter Julien, Vice President, Finance High Arctic
Energy Services Inc., Tel: (403) 340-9825, Fax: (403) 340-1047,