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CALGARY, May 1, 2015 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the "Company") is pleased to announce the award of two new contracts with a customer for the supply of mats and additional rolling stock to support the drilling operations of Rigs 115 and 116. The matting contract is for the provision of a minimum of 2000 mats on a firm two year term with the first 1000 commencing with the completion of Rig 115's mobilization. The Rolling Stock contract is for the provision of cranes and tele-handlers on a firm two year term and will commence with the arrival of equipment into PNG. The combined annual revenue for these latest contracts will range between US$4 million to in excess of US$7 million on an annualized basis, dependent upon the total number of mats deployed. The mats will be drawn from High Arctic's existing inventory in PNG. The rolling stock will be new equipment designed to handle the requirements of Rigs 115 and 116.
High Arctic is also pleased to announce that Rig 115 has recently arrived in PNG and is currently being mobilized to the first drilling location in PNG. The rig is on a reduced moving rate during the mobilization period which began mid March, and will go on full operating rate once it is ready to spud the first well. The two year contract term, with anticipated annualized revenue of US$30 million, will begin on spud which is targeted to occur mid May.
Tim Braun, High Arctic's CEO, stated; "We are excited to have our drilling team in place and to be nearing the commencement of drilling operations with Rig 115. The execution of these contracts reinforces our optimism for the PNG market amidst the downturn of global commodity prices".
This news release may contain forward-looking statements relating to expected future events and anticipated financial and operating results of the Company 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, but not limited to, market and general economic conditions, and the risks and uncertainties detailed in both the Company's Management Discussion and Analysis for the year ended December 31, 2014 and the Annual Information Form for the year ended December 31, 2014 found on SEDAR (www.sedar.com). Due to the potential impact of these factors, the Company 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
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.
SOURCE High Arctic Energy Services Inc.
For further information: Ken Olson, Chief Financial Officer, Phone: 403 580 7836 ext 103, Email: [email protected]