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  /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/  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  
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