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CALGARY, Alberta, July 22, 2021 (GLOBE NEWSWIRE) -- Â High Arctic Energy Services Inc. (TSX: HWO) (â€śHigh Arcticâ€ť or the â€śCorporationâ€ť) is pleased to announce that we have agreed to terms with a major multi-national customer in Papua New Guinea (â€śPNGâ€ť) to provide services in 2021 for the abandonment of a complex legacy exploration well, and the extension of its long-standing drilling services contracts.
PNG Well Abandonment
The well abandonment project is for a subsidiary of a major multi-national energy company. It requires deployment of the Companyâ€™s heli-portable Rig 115 as well as two 100 bed heli-portable camps accompanied by a suite of support equipment, personnel and services. Conclusion of the agreement is subject to obtaining Bank of Papua New Guinea and other customary approvals. In the near term, the Company plans to deploy the first camp and make ready Rig 115, a second camp and support equipment all of which is coming out of cold stack. Field operations are expected to commence during the fourth quarter of this year, following mobilization to the remote well site.
Mike Maguire, Chief Executive Officer commented: â€śWe are excited to be bringing people back to work in PNG and building on the investment we have made in our local workforce and in the preservation of our assets. This first post-COVID deployment follows extensive planning and preparation with our customer and positions High Arctic well to execute future drilling activity in the area."Â Â
Exercise of an Option to extend PNG Contracts
Additionally, our longest-standing PNG customer has issued notice to High Arctic exercising an option to extend existing contracts to August 2022.
CEO Mike Maguire stated, â€śWe are delighted with this re-affirmation of the value of our services to our key customer in PNG. The relationship is one of a symbiotic nature where both companies have enhanced the other over more than a decade.â€ť
Recent Developments in PNG
The two sets of contracts follow a series of recent positive developments in PNGâ€™s natural resources sector. In a statement last week, PNG Prime Minister James Marape indicated that terms have been agreed for the Pasca-A gas condensate development and, that the state negotiating team will be commencing talks with PNG-LNG partners later this month on terms for the Pâ€™nyang gas field development.
CEO Mike Maguire: â€śFor High Arctic, these developments reinforce our optimism for PNG as momentum for meaningful drilling activity continues to build in the country.â€ť
About High Arctic
High Arcticâ€™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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The western Canadian operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of exploration and production companies.
For further information, please contact:
Chief Executive Officer
High Arctic Energy Services Inc.
Suite 500, 700 â€“ 2nd Street S.W.
Calgary, Alberta, Canada T2P 2W1
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