High Arctic Signs a 2 Year Drilling Services Contract with InterOil and Purchases Two Drilling Rigs

High Arctic Signs a 2 Year Drilling Services Contract with InterOil and 
Purchases Two Drilling Rigs 
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CALGARY, April 9, 2014 /CNW/ - High Arctic Energy Services Inc. (TSX: HWO) 
("High Arctic" or the "Company") is pleased to announce that it has signed a 
new Drilling Services Agreement with InterOil Corporation for one 
heli-portable drilling rig in Papua New Guinea ("PNG").  High Arctic has 
agreed to provide one drilling rig and a 100 person camp for a firm contract 
term of two years with an extension option available to InterOil for one 
additional year.  The two year term commences once the rig has been mobilised 
and is ready to commence drilling operations. The contract is projected to 
deliver annualized revenue of approximately US$30 million during the drilling 
operations.  The target spud date for the first well is November 2014. 
In conjunction with the award of this contract, High Arctic has agreed to 
purchase two heli-portable drilling rigs and associated ancillary equipment.  
The total commitment to purchase and deliver the two rigs with upgrades is 
estimated at US$52 million.  The matching rigs are AC self-erecting 1500 HP 
triple drilling rigs designed and manufactured as heli-portable. The rigs can 
be broken down into 2700kg loads allowing maximum transportation versatility 
and flexible alternatives in helicopter selection.  Constructed in 2010, the 
rigs feature the latest safety designs and drilling automation technology, and 
have each had approximately one year of use. 
Kevin Doran, High Arctic's President, International, stated; "The acquisition 
of these two drilling rigs is a significant milestone for High Arctic and 
reflects our continued commitment to expanding our presence within Papua New 
Guinea. We are excited to be working with InterOil as they move towards 
commercializing their resources.  The second rig should position us to take 
advantage of the growing activity in the country." 
The rig purchase is subject to customary closing conditions and closing is 
expected to occur by mid-May. The rigs are currently being prepared to be 
shipped to PNG with an expected landing date in June.  The first rig will then 
be commissioned and upgraded at a customer supplied yard near Port Moresby.  
The first rig is expected to be mobilised to the field in November at which 
time revenue streams will commence.  The second rig will then be commissioned 
and is expected to be available for use in early 2015.  The Company will  
market the second rig to both existing and potential new customers in PNG. 
The Company plans to acquire the rigs using existing cash on hand and 
available capacity on its current revolving loan facility. 
Forward-Looking Statements 
This news release may contain forward-looking statements relating to expected 
future events and anticipated financial and operating results of the Company 
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, but not limited to, market and general 
economic conditions, and the risks and uncertainties detailed in both the 
Company's Management Discussion and Analysis for the year ended December 31, 
2013 and the Annual Information Form for the year ended December 31, 2013 
found on SEDAR (www.sedar.com). Due to the potential impact of these factors, 
the Company 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 Company is a provider of specialized oilfield equipment and services for 
drilling, completion and work over operations.  Based in Alberta, High Arctic 
has operations throughout Western Canada and in Papua New Guinea. The 
Company's most recent investor presentation can be found at www.haes.ca.
 

SOURCE  High Arctic Energy Services Inc. 
Ken Olson, Chief Financial Officer, Phone: 403 580 7836 ext 103, Email: 
ken.olson@haes.ca 
To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/April2014/09/c1001.html 
CO: High Arctic Energy Services Inc.
ST: Alberta
NI: OIL ORDER  
-0- Apr/09/2014 13:33 GMT
 
 
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