Mr. Mike Maguire reports

HIGH ARCTIC PROVIDES REORGANIZATION AND PNG UPDATE

High Arctic Energy Services Inc. has provided an update on the contemplated reorganization of the corporation, including the associated tax-efficient $38.2-million return of capital, the Papua New Guinea-focused business spinout to shareholders and the refocus of the Canadian business, and an update on its Papua New Guinea operations.

The corporation has received feedback from shareholders and is working with its advisers on the reorganization plan to incorporate key elements of the shareholder feedback. The High Arctic board has reserved its final decision to proceed with the reorganization until these matters and the continuing strategic review have been addressed to its satisfaction, requisite regulatory approvals have been received, and the materials are ready to present to shareholders.

The corporation cautions readers that there is no certainty that the reorganization will proceed in the format previously announced, or at all.

In PNG, Rig 103 has continued to operate reliably since returning to work, and in the process, its crews have passed through seven years and 3.5 million work hours of recordable incident-free operations. Activity is nearing the halfway point of the four currently committed wells for its primary customer under the three-year operations and management contracts that mature in August, 2025.

High Arctic observes that the Papua-LNG partners have pushed back guidance for the target final investment decision on the project to early 2024. It has also observed that the project planning involves the creation of road access to the development well sites and, as a result, will likely not specifically require heli-portable drilling rigs. High Arctic was involved in drilling four of the Antelope field appraisal wells with its heli-portable drilling rigs. While High Arctic has specialist PNG drilling knowledge that it strongly believes is critical to successful well delivery, there is no guarantee that its rigs will be deemed suitable for, or that it will be contracted to conduct, the Papua-LNG development drilling at the Elk/Antelope fields.

About High Arctic Energy Services Inc.

High Arctic is an energy service provider. High Arctic is a market leader in Papua New Guinea, providing drilling and specialized well completion services, and supplies rental equipment, including rig matting, camps, material handling and drilling support equipment. In Western Canada, High Arctic provides pressure control equipment on a rental basis to exploration and production companies.

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