NOT FOR DISTRIBUTION TO US NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF US SECURITIES LAW
CALGARY, Alberta, Jan. 31, 2022 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) (“High Arctic” or the “Company”) is pleased to confirm that it has commenced drilling operations in Papua New Guinea Guinea (“PNG”) with Rig 115 commencing borehole work activity for one of our major clients.
Following assembly and re-commissioning of the 115 rig and equipment on site, work has recently begun to re-enter the borehole. This key milestone was passed without incident, building on the 5 years and 2.5 million hours worked without incident in PNG. The efficient movement of people and equipment from the High Arctic to the well site has been hampered by the unavailability of transport equipment, significant weather events and Covid-19 induced personnel shortages and travel restrictions that combined to move the start date to 2022.
Mike Maguire, CEO, said, “The resumption of drilling operations is a key milestone that underpins our strategic investment in PNG. Achieving this important milestone in the face of the obstacles presented by complex supply chains and remote environments could not have been achieved without the support of our client and the unwavering efforts of our highly experienced in-country teams and in-house staff. dedicated support. The fact that we were able to safely overcome these exceptional challenges is a credit to the remarkable people involved.
“The start-up and re-commissioning of the platform, after a long period of inactivity, is, in our view, a harbinger of better times to come. While the current project is of relatively short duration Through the second quarter of 2022, the positive momentum for energy services in PNG continues to build.The potential for expansion of PNG’s LNG export capacity is world-class and the High Arctic remains exceptionally well placed to benefit from it. In addition to the investment parameters, the long-term climate benefits of LNG compared to coal consumption in the Asian region are extremely compelling. To this end, discussions between producers and the PNG government continue to make progress and the Company expects key decisions, including the execution of the P’nyang Gas Agreement, to be made shortly.”
High Arctic has been active in Papua New Guinea for nearly fifteen years, carrying out work for all major exploration and production companies, including large multinationals and regionally significant companies. With the successful resumption of drilling services in PNG, the stage is set for significant drilling project announcements in 2022.
Readers are cautioned that this press release contains certain forward-looking information that is subject to particular risks associated with the energy services industry. High Arctic believes that there are reasonable grounds for the expectations on which the statements are based. However, actual results in PNG could differ materially due to a range of factors, including continued excellence in safety performance, continued relationships with key customers, PNG’s potential to expand export capacity of LNG, future use of LNG rather than coal consumption in the Asian region, execution of the P’nyang Gas Agreement, announcements of significant drilling projects in 2022, processing under government regulatory regimes , other government matters and approvals, political uncertainty and civil unrest, currency fluctuations and the impact of COVID-19.
About the High Arctic
High Arctic’s primary focus is to provide specialized well drilling and completions, equipment rental and other services to the oil and gas industry. High Arctic is a market leader providing specialist drilling and well completion services and provides drill pads, camps and drilling support equipment on a rental basis in Papua New Guinea. Western Canada Operations provides well servicing, well abandonment, depreciation and nitrogen services and equipment on a rental basis to a large number of exploration and oil and natural gas production.
For more information, contact:
Chief executive officer
Telephone: +1 (587) 318 3826
Telephone: +1 (800) 688 7143
High Arctic Energy Services Inc.
Suite 3250, 330–5th Avenue SW
Calgary, Alberta, Canada T2P 0L4
Email: [email protected]