/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, April 1 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO)
("High Arctic" or the "Corporation") updated the status of its credit
facilities. As previously indicated, the Corporation confirms that, as at
March 31, 2009, it had not met certain asset sale requirements under its
revolving credit facility or repaid the $20-million multi-draw bridge loan
facility (the "Bridge Loan").
The Corporation is working with its lenders for extensions to both the
Bridge Loan and the revolving credit facilities and currently has no reason to
believe that it will not be successful.
Under the current loan arrangements, the $20-million Bridge Loan and
associated fees were due on March 31, 2009. In addition, the Corporation has
not completed the mandatory asset sale requirements. Under the terms of its
revolving credit facility dated June 6, 2008, the Corporation was required to
raise net proceeds of $50 million from the sale of equipment by January 31,
2009. An extension agreement dated December 26, 2008 and a waiver dated March
18, 2009 allowed the Corporation until March 31, 2009 to complete the required
asset sales. As at March 31, 2009, the Corporation had completed asset sales
of $30.8 million.
The Corporation will provide additional information as it becomes
available, including the terms of any extension.
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, 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, the
Middle East and Asia.
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: Morley Myden, Chief Financial Officer, (403)