High Arctic Credit Facility and Kuwait Update
18/09/2007 19:38
PR Newswire
RED DEER, Canada, September 18 /PRNewswire/ --
- 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. (TSX: HWO) ("High Arctic") today
provided updates on the status of its credit facilities and its activities
in Kuwait.
On July 5, 2007, High Arctic secured a commitment on a fully underwritten
basis for up to CAD$155 million of financing from an existing lender
comprised of a senior secured revolving credit facility and second lien
notes. The new facility was to be used in part to repay an existing credit
facility owed to a syndicate represented by that lender. In addition, the
parties signed a commitment letter for a CAD$20 million multi-draw bridge
loan facility, which was subsequently drawn down in full. As a result of
changing conditions in the credit markets, the commitment for the CAD$155
million new facility will not be completed on the original terms and
conditions. High Arctic is in negotiations to extend, and possibly amend,
the existing credit facility and bridge loan and also for a new credit
facility. To assist with the negotiations, a professional services firm
has been engaged as a consultant to assist the lender in assessing the
financial position and future business prospects of High Arctic.
Currently, High Arctic owes approximately CAD$123 million under the
existing credit facility and the bridge loan facility.
In August 2007, High Arctic commenced work on the first well under the
previously announced 5 year contract in Kuwait for the supply of hydraulic
workover and snubbing services. A second hydraulic workover rig has been
called out and is expected to commence operations around October 15. High
Arctic has received an addendum to double the maximum value of the 5 year
contract to US$68 million to reflect the anticipated work program.
Forward-Looking Statements
This news release may contain forward-looking statements relating to
expected future events and financial and operating results of the Corporation
that involve risks and uncertainties. Actual results may differ materially
from management expectations as projected in such forward-looking statements
for a variety of reasons, including market and general economic conditions
and the risks and uncertainties detailed in the Corporation's Management
Discussion and Analysis for the six months ended June 30, 2007 and in the
Trust's Annual Information Form for the year ended December 31, 2006 and the
Trust's Information Circular dated May 29, 2007, all found on SEDAR
(http://www.sedar.com). Due to the potential impact of these factors, the
Corporation disclaims any intention or obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless required by applicable law.
About High Arctic
The Corporation, 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, Asia, North Africa and Mexico.
The TSX has not reviewed and does not accept responsibility for the
adequacy or accuracy of this news release.
For further information: Jed Wood, President and Chief Executive Officer, High Arctic Energy Services Inc., Tel: +1-403-340-9825, jed.wood@haes.ca