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High Arctic Energy Services Inc (2)
Symbol HWO
Shares Issued 55,768,652
Close 2014-12-17 C$ 3.43
Market Cap C$ 191,286,476
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High Arctic sets 2015 capital budget at $36-million

2014-12-17 20:10 ET - News Release

Mr. Ken Olson reports

HIGH ARCTIC ANNOUNCES 2015 CAPITAL BUDGET

High Arctic Energy Services Inc.'s board of directors has approved a capital budget of $36-million for 2015 to complete previously announced capital spending projects and to address maintenance and incremental growth opportunities next year.

The budget includes $31.8-million of capital expenditures, which consist primarily of the previously announced upgrading and commissioning of rigs 115 and 116. Growth spending in 2015 will also include rental equipment and ancillary snubbing equipment for the Canadian operations to address specific customer needs. Budgeted maintenance capital expenditures in 2015 of $4.2-million will ensure that the equipment in both Papua New Guinea and Canada continues to operate at the highest industry standards.

Tim Braun, chief executive officer, stated: "The long-term demand for clean energy in Asia will in part be fulfilled by LNG imports. Papua New Guinea, with its large natural gas reserves and operating LNG export facility, is well positioned to help fulfill this demand. High Arctic will benefit from this opportunity as a substantial portion of our revenue is earned operating under fixed-term contracts in PNG. We continue to evaluate other growth opportunities in both PNG and Canada, and recognize that this capital budget provides flexibility to increase our capital spending throughout the year if expansion opportunities materialize."

High Arctic has a strong balance sheet and growing cash flows from operations. The budgeted expenditures will be financed from cash on hand and from operating cash flows generated in 2015. The deployment of Rig 115 and Rig 116 remains on schedule with the company's previously announced timeline.

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