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CALGARY, Feb. 7, 2014 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Company") is pleased to announce that its Board of Directors has approved a capital budget of $19 million for 2014 to address maintenance and incremental growth opportunities. This budget includes growth capital expenditures of $13 million, and maintenance capital expenditures of $6 million. The $19 million includes $2.5 million of capital expenditures that were committed during fiscal 2013 but which had not yet been completed at year-end and are carried forward into 2014. The budgeted expenditures are anticipated to be funded from the 2014 operating cash flow and cash on hand.
Growth spending in 2014 will include Dura-Base® matting for deployment in Papua New Guinea ("PNG"), as well as other pieces of rental equipment to support operations in PNG. The Company is currently evaluating potential opportunities for the deployment of Dura-Base® matting solutions elsewhere in the world and has budgeted for the purchase of five hundred new mats as initial inventory.
In Canada, growth spending includes one new 170K Stand-Alone Snubbing Unit. This unit is designed for certain unique well completions tasks and helps ensure that the Company remains the snubbing market leader in the Western Canadian Sedimentary Basin.
Dennis Sykora, CEO, stated, "Our ongoing investments in PNG support our position as a preeminent service provider in the country, and our continuous maintenance and enhancement program in Canada ensures that we are well positioned to service the growing LNG focused activity. We continue to evaluate other growth opportunities and the conservative initial budget provides flexibility to increase our capital spending as opportunities materialize."
The Board has determined that as the Company now has more consistent cash flows, it is no longer necessary to provide early earnings estimates, and it will release its 2013 fourth quarter and full year end results in March.
About High Arctic
The Company is a provider of specialized oilfield equipment and services, including drilling, completion and workover related services. Based in Alberta, High Arctic has domestic operations throughout western Canada and international operations in Papua New Guinea. The Company's most recent investor presentation can be found at www.haes.ca.
SOURCE: High Arctic Energy Services Inc.
For further information:
Chief Financial Officer
Phone: 403-508-7836 ext 103
Email: [email protected]