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CALGARY, Dec. 16, 2015 /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 2016 capital budget of $15.5 million comprised of growth capital expenditures of $12.0 million and maintenance capital expenditures of $3.5 million.
The 2016 growth capital initiatives combined with capital spending undertaken in 2015 of approximately $44.0 million is expected to lead to continued growth in 2016. Growth spending in 2016 will include additional rental equipment purchases to support operating activities and the addition of newly designed snubbing units suited for high pressure, extended lateral length wells.
Tim Braun, CEO, stated "Our 2016 capital expenditure program addresses immediate capital needs to support our base business operations in Papua New Guinea and niche growth opportunities in Canada. We continue to focus on our stated plan for growth through strategic acquisitions in the existing capital constrained market. Our strong financial position provides flexibility to deploy capital as opportunities materialize."
High Arctic is also pleased to announce that its Board of Directors has approved a monthly dividend payment of $0.0165 per share to holders of common shares. The dividend is payable on January 14, 2016, to holders of High Arctic common shares of record at the close of business on December 31, 2015. The ex-dividend date is December 29, 2015. The dividend is designated as an "eligible dividend" for Canadian Income Tax purposes.
About High Arctic
High Arctic is a publicly traded company listed on the Toronto Stock Exchange under the symbol "HWO". The Corporation's principal focus is to provide drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry.
High Arctic's largest operation is in Papua New Guinea where it provides drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis. The Canadian operation provides snubbing services, nitrogen supplies and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada.
This press release contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. More particularly and without limitation, this press release contains forward-looking statements and information relating to future capital expenditures, demand for High Arctic's services and the sources and availability of funding. These forward-looking statements and information are based on certain key expectations and assumptions made by High Arctic. Although High Arctic believes that the expectations and assumptions on which such forward-looking statements and information are based are reasonable, undue reliance should not be placed on the forward-looking statements and information as High Arctic cannot give any assurance that they will prove to be correct. Since forward-looking statements and information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, prevailing economic conditions; commodity prices; sourcing, pricing and availability of raw materials, component parts, equipment, suppliers, facilities and skilled personnel; dependence on major customers; uncertainties in weather and temperature affecting the duration of the service periods and the activities that can be completed; health, safety and environmental risks; exchange rate fluctuations; marketing and transportation; loss of markets; environmental risks; governmental regulations; competition; incorrect assessment of the value of acquisitions; failure to realize the anticipated benefits of acquisitions; ability to access sufficient capital from internal and external sources; failure to obtain required regulatory and other approvals; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Readers are cautioned that the foregoing list of risks and uncertainties is not exhaustive. Additional information on these and other risk factors that could affect High Arctic's operations or financial results are included in High Arctic's annual information form and may be accessed through the SEDAR website (www.sedar.com). The forward-looking statements and information contained in this press release are made as of the date hereof and High Arctic does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
SOURCE High Arctic Energy Services Inc.
For further information: Tim Braun, Chief Executive Officer, Phone: 403-508-7836 ext 105, Email: [email protected]; Brian Peters, Chief Financial Officer, Phone: 403-508-7836 ext 103, Email: [email protected]