High Arctic Provides Reorganization and PNG Update
September 28 2023 - 11:00PM
High Arctic Energy Services Inc. (TSX: HWO) "High Arctic" or the
"Corporation” provides an update on the contemplated reorganization
of the Corporation, including the associated tax efficient $38.2
million return of capital, the Papua New Guinea focused business
spin-out to shareholders, refocus of the Canadian business and an
update on its Papua New Guinea (“PNG”) operations.
The Corporation has received feedback from
shareholders and is working with its advisors on the reorganization
plan to incorporate key elements of the shareholder feedback. The
High Arctic board has reserved its final decision to proceed with
the reorganization until these matters and ongoing strategic review
have been addressed to their satisfaction, requisite regulatory
approvals have been received, and the materials are ready to
present to shareholders.
The Corporation cautions readers that there is
no certainty that the reorganization will proceed in the format
previously announced, or at all.
In PNG, Rig 103 has continued to operate
reliably since returning to work and in the process our crews have
passed through 7 years and 3.5 million work hours of recordable
incident free operations. Activity is nearing the halfway point of
the four currently committed wells for our primary customer, under
the three-year operations and management contracts that mature in
August 2025.
High Arctic observes that the Papua-LNG partners
have pushed back guidance for the target final investment decision
on the project website https://papualng.com.pg/ to “early 2024”. We
have also observed that the project planning involves the creation
of road access to the development well sites and as a result will
likely not specifically require heli-portable drilling rigs. High
Arctic was involved in drilling four of the Antelope field
appraisal wells with our heli-portable drilling rigs. While High
Arctic has specialist PNG drilling knowledge that we strongly
believe is critical to successful well delivery, there is no
guarantee that our rigs will be deemed suitable for, or that we
will be contracted to conduct the Papua-LNG development drilling at
the Elk / Antelope fields.
Forward-Looking Statements
This press release contains forward-looking
statements. When used in this document, the words “may”, “would”,
“could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”,
“propose”, “estimate”, “expect”, and similar expressions are
intended to identify forward-looking statements. Such statements
reflect the Corporation’s current views with respect to future
events and are subject to certain risks, uncertainties and
assumptions. Many factors could cause the Corporation’s actual
results, performance or achievements to vary from those described
in this press release.
Should one or more of these risks or
uncertainties materialize, or should assumptions underlying
forward-looking statements prove incorrect, actual results may vary
materially from those described in this press release as intended,
planned, anticipated, believed, estimated or expected. Specific
forward-looking statements in this press release include, but are
not limited to, statements pertaining to the following:
-
the High Arctic board’s final decision to proceed with the
reorganization,
-
the level of certainty that the reorganization will proceed in the
format previously announced, or at all,
-
that Rig 103 will drill the four currently committed wells for our
primary customer, and any wells following those,
-
Papua-LNG partners target final investment decision on the project
of “early 2024”,
-
whether High Arctic’s heli-portable drilling rigs will be suitable
for the Papua-LNG project, and
-
whether High Arctic will be contracted to conduct the Papua-LNG
development drilling.
The Corporation’s actual results could differ
materially from those anticipated in these forward-looking
statements as a result of the risk factors set forth above and
elsewhere in this press release.
The forward-looking statements contained in this
press release are expressly qualified in their entirety by this
cautionary statement. These statements are given only as of the
date of this press release. The Corporation does not assume any
obligation to update these forward-looking statements to reflect
new information, subsequent events or otherwise, except as required
by law.
About High Arctic
High Arctic is an energy services provider. High
Arctic is a market leader in Papua New Guinea providing drilling
and specialized well completion services and supplies rental
equipment including rig matting, camps, material handling and
drilling support equipment. In western Canada, High Arctic provides
pressure control equipment on a rental basis to exploration and
production companies.
For further information, please contact:
Mike MaguireChief Executive
Officer1.587.318.38261.800.668.7143
High Arctic Energy Services Inc.Suite 2350, 330–5th Avenue
SWCalgary, Alberta, Canada T2P 0L4website: www.haes.caEmail:
info@haes.ca
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