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CALGARY, Alberta, April 16, 2019 (GLOBE NEWSWIRE) -- High Arctic Energy Services Inc. (“High Arctic”) is pleased to announce it has closed on the previously announced agreement to acquire the assets of Precision Drilling’s snubbing services equipment, entirely located in Canada (“Precision Snubbing”). The acquisition provides High Arctic with additional quality snubbing equipment and access to experienced personnel and crews.
The purchase price of a total of $8.25 million was settled in cash.
The acquisition provides High Arctic with twelve additional marketed snubbing units, seven of which have been active over the last twelve months, as well as certain patent rights related to the design and configuration of stand-alone snubbing units and spare equipment. High Arctic operates the largest snubbing fleet in Canada consisting of a total of 29 snubbing units. Of High Arctic’s total fleet of snubbing units, five are currently being marketed in the United States and an additional three units will be deployed for well service and completion work in the Niobrara and the Bakken. High Arctic is examining other markets in the United States to expand its services.
Matt Maclean, who joined High Arctic with the acquisition of Power Stroke in August 2018 will become the Vice President, Pressure Services responsible for snubbing and pressure services in North America. Mr. Maclean has 22 years of pressure control and industry experience.
This News 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 News 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 News Release as intended, planned, anticipated, believed, estimated or expected. Specific forward looking statements in this Press Release include, among others, statements pertaining to the following: the potential expansion by High Arctic of its well service offerings; the marketing of snubbing units in the United States; and the effects thereof.
With respect to forward-looking statements contained in this News Release, the Corporation has made assumptions regarding, among other things, that the Corporation will be able to deploy three units for well service and completion work in the Niobrara and the Bakken. 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 News Release, along with the risk factors set out in the most recent Annual Information Form filed on SEDAR at www.sedar.com.
The forward-looking statements contained in this News Release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this News 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 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 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 Canadian and US operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada and the United States.