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CALGARY,
Dec. 17, 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 $36
million for 2015 to complete previously announced capital
spending projects and to address maintenance and incremental growth
opportunities next year.
The budget includes $31.8
million of capital expenditures which consists primarily of
the previously announced upgrading and commissioning of Rigs 115
and 116. Growth spending in 2015 will also include rental equipment
and ancillary snubbing equipment for the Canadian operations to
address specific customer needs. Budgeted maintenance capital
expenditures in 2015 of $4.2 million
will ensure that the equipment in both Papua New Guinea ("PNG") and Canada continue to operate at the highest
industry standards.
Tim Braun, CEO,
stated "The long term demand for clean energy in Asia will in part be fulfilled by LNG imports.
Papua New Guinea with its large
natural gas reserves, and operating LNG export facility, is well
positioned to help fulfill this demand. High Arctic will
benefit from this opportunity as a substantial portion of our
revenue is earned operating under fixed term contracts in PNG. We
continue to evaluate other growth opportunities in both PNG and
Canada, and recognize that this
capital budget provides flexibility to increase our capital
spending throughout the year if expansion opportunities
materialize."
High Arctic has a strong balance sheet and
growing cash flows from operations. The budgeted expenditures will
be funded from cash on hand and from operating cash flows generated
in 2015. The deployment of Rig 115 and Rig 116 remains on
schedule with our previously announced timeline.
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.