High Arctic Energy Services and Schlumberger Form Joint Venture
18:18 EDT Monday, October 29, 2007
RED DEER, ALBERTA--(Marketwire - Oct. 29, 2007) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF U.S. SECURITIES LAW
High Arctic Energy Services Inc. ("High Arctic") (TSX:HWO) announced today that it has executed a joint venture agreement (the "Joint Venture") with the Schlumberger group ("Schlumberger") for the purpose of providing underbalanced drilling ("UBD") services and managed pressure drilling ("MPD") services to the worldwide upstream oil and gas industry. The Joint Venture provides a global platform to rapidly develop the UBD and MPD businesses. Initially, the Joint Venture will focus on providing UBD and MPD services for projects managed by Schlumberger Integrated Project Management ("IPM").
The Joint Venture will be owned 51% by High Arctic and 49% by Schlumberger. As part of the initial formation of the Joint Venture, High Arctic will sell its existing UBD and MPD equipment and the technology associated with its existing UBD and MPD businesses, including intellectual property rights, to the Joint Venture. The Joint Venture start-up and ongoing capital needs will be proportionately funded by High Arctic and Schlumberger. The Joint Venture will be known as Optimal Pressure Drilling Services.
Commenting on the agreement, Mr. Miguel Galuccio, President IPM said, "Combining the fast-growing market recognition and penetration of Schlumberger IPM with High Arctic's technical expertise will provide our customers with a complete integrated solution in the UBD market which will further assist in mainstreaming MPD in its relationship to performance drilling." Mr. Jed Wood, President & CEO of High Arctic said, "Being selected by Schlumberger as a worldwide underbalanced partner is an important endorsement of High Arctic's leadership in the UBD market."
High Arctic spends significant resources on research and development to create new technology for its distinct product lines. High Arctic's success in underbalanced drilling is underpinned by this commitment which, together with High Arctic's technical expertise, has led to a wide range of innovative drilling and completions products.
About High Arctic
High Arctic, through its subsidiaries, is a global provider of specialized oilfield equipment and services, including drilling, completion and workover operations. High Arctic's new underbalanced drilling technology and equipment is recognized for its ability to improve oil and gas production capabilities and is expected to develop greater acceptance in international markets. Based in Red Deer, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East, Northern Africa and Asia. For more information visit www.higharcticenergyservices.com.
High Arctic Energy Services Inc. Jed Wood President and Chief Executive Officer (403) 340-9825 (403) 340-1047 (FAX) Email: firstname.lastname@example.org
or High Arctic Energy Services Inc. Peter Julien Vice President, Finance (403) 340-9825 (403) 340-1047 (FAX) Email: email@example.com Website: www.higharcticenergyservices.com
Very interesting information for us longs. Do you have any idea why a joint venture agreement should be not for disclosure in the U.S.? This sound strange! By the way, how long this can be kept "secret" to the SEC?