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LAW/
CALGARY,
July 28, 2014 /CNW/ - High Arctic
Energy Services Inc. (TSX: HWO) ("High Arctic" or the
"Corporation") is pleased to announce that it has completed
the previously announced acquisition (the "Acquisition") of
two heli-portable drilling rigs and associated ancillary equipment
for approximately USD$29 million. The
total commitment to purchase, deliver, upgrade and commission the
two drilling rigs has been estimated at USD $52 million. The rigs are currently on route to
Houston, Texas to be
upgraded and commissioned. Rig 115 will be completed first
and then shipped to Papua New
Guinea ("PNG") to be deployed under the previously announced
two year drilling contract with an anticipated first spud date in
early 2015. Efforts continue to secure a contract for Rig 116
in PNG.
The Acquisition was partially funded with a
bought deal public financing (the "Offering") through a
syndicate of underwriters led by National Bank Financial Inc. that
included PI Financial Corp., AltaCorp Inc. and Lightyear Capital
Inc., and which closed on June 11,
2014. Pursuant to the Offering, High Arctic issued 5,051,000
subscription receipts (the "Subscription Receipts") at a
price of $4.95 per Subscription
Receipt for gross proceeds of approximately CND$25 million. In
accordance with their terms, each Subscription Receipt was
exchanged for one common share of the Corporation ("Common
Share") on July 28, 2014 upon
closing of the Acquisition and the proceeds from the sale of the
Subscription Receipts were released from escrow. Holders of
Subscription Receipts are not required to take any action in order
to receive the Common Shares to which they are entitled. Holders of
the Subscription Receipts shall receive an amount equal to the
$0.015 per Common Share dividend that
was paid on July 14, 2014 to holders
of record at June 30, 2014. This
amount will be paid on July 28, 2014
to the holders of Subscription Receipts on the exchange date.
At July 28, 2014,
High Arctic has 55,434,952 Common Shares outstanding, including the
Common Shares issued pursuant to the Subscription Receipts.
Forward Looking-Statements
Certain statements contained in this news release
constitute forward-looking information. These statements relate to
future events or the Corporation's future performance. The use of
any of the words "could", "expect", "believe", "will", "projected",
"estimated" and similar expressions and statements relating to
matters that are not historical facts are intended to identify
forward-looking information and are based on the Corporation's
current belief or assumptions as to the outcome and timing of such
future events. In particular, forward-looking statements
contained in this press release include, but are not limited to:
the expected effects of the Acquisition and the payment of the
dividend equivalent amount to Subscription Receipt holders. These
forward-looking statements are based on assumptions and are subject
to numerous risks and uncertainties, certain of which are beyond
the Corporation's control, including the impact of general economic
conditions, industry conditions, volatility of commodity prices,
competition, stock market volatility and the ability to access
sufficient capital. Actual future results may differ
materially. The Corporation's annual information form for the year
ended December 31, 2013 and other
documents filed with securities regulatory authorities (accessible
through the SEDAR website www.sedar.com) describe the risks,
material assumptions and other factors that could influence actual
results and which are incorporated herein by reference. The
Corporation disclaims any intention or obligation to publicly
update or revise any forward-looking information, whether as a
result of new information, future events or otherwise, except as
may be expressly required by applicable securities laws.
About High Arctic
The Corporation 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 Corporation's most
recent investor presentation can be found at www.haes.ca.
SOURCE High Arctic Energy Services Inc.