High Arctic Announces Completion of an Internal Reorganization

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RED DEER, AB, Dec. 31 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Corporation") is pleased to announce that it has completed an internal reorganization that simplifies the structure of the Corporation and its affiliated entities. Under the internal reorganization, High Arctic Energy Services Limited Partnership was dissolved and 1049477 Alberta Ltd., High Arctic Energy Corp., 1181129 Alberta Ltd. and a newly incorporated subsidiary of the Partnership, 1575828 Alberta Ltd., amalgamated to continue as a wholly-owned subsidiary of the Corporation under the name "High Arctic Energy Corp".  The Corporation then amalgamated with its wholly-owned subsidiary, High Arctic Energy Corp., effective December 31, 2010.  Pursuant to the amalgamation, all of the issued and outstanding shares of High Arctic Energy Corp were cancelled and the assets and obligations and liabilities of High Arctic Energy Corp. were assumed by the Corporation.  No securities of the Corporation were issued in connection with the amalgamation and the share capital of the Corporation remains the same.  The final vertical short-form amalgamation was completed pursuant to section 184(1) of The Business Corporations Act (Alberta).  

The internal reorganization was undertaken in order to simplify the organizational structure of the Corporation. Further, the reorganization does not have any significant effect on the business and operations of the Corporation.

Forward-Looking Statements

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 both the Corporation's Management Discussion and Analysis for the year ended December 31, 2009 and the Annual Information Form for the year ended December 31, 2009 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 provides specialized oilfield equipment and services for drilling, completion and workover operations.  Based in Red Deer, Alberta, High Arctic has domestic operations throughout Western Canada and international operations primarily in Papua New Guinea.

For further information:

Morley Myden
Chief Financial Officer
403 340 9825
[email protected]