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CALGARY,
Dec. 16, 2015 /CNW/ - High
Arctic Energy Services Inc. (TSX: HWO) ("High Arctic" or the
"Company") is pleased to announce that its Board of Directors has
approved a 2016 capital budget of $15.5
million comprised of growth capital expenditures of
$12.0 million and maintenance capital
expenditures of $3.5 million.
The 2016 growth capital initiatives combined with
capital spending undertaken in 2015 of approximately $44.0 million is expected to lead to continued
growth in 2016. Growth spending in 2016 will include
additional rental equipment purchases to support operating
activities and the addition of newly designed snubbing units suited
for high pressure, extended lateral length wells.
Tim Braun, CEO,
stated "Our 2016 capital expenditure program addresses immediate
capital needs to support our base business operations in
Papua New Guinea and niche growth
opportunities in Canada. We
continue to focus on our stated plan for growth through strategic
acquisitions in the existing capital constrained market. Our
strong financial position provides flexibility to deploy capital as
opportunities materialize."
High Arctic is also pleased to announce that its
Board of Directors has approved a monthly dividend payment of
$0.0165 per share to holders of
common shares. The dividend is payable on January 14, 2016, to holders of High Arctic
common shares of record at the close of business on December 31, 2015. The ex-dividend date is
December 29, 2015. The dividend is
designated as an "eligible dividend" for Canadian Income Tax
purposes.
About High Arctic
High Arctic is a publicly traded company listed
on the Toronto Stock Exchange under the symbol "HWO". The
Corporation's principal focus is to provide drilling and
specialized well completion services, equipment rentals and other
services to the oil and gas industry.
High Arctic's largest operation is in
Papua New Guinea where it provides
drilling and specialized well completion services and supplies rig
matting, camps and drilling support equipment on a rental
basis. The Canadian operation provides snubbing services,
nitrogen supplies and equipment on a rental basis to a large number
of oil and natural gas exploration and production companies
operating in Western Canada.
This press release contains forward-looking
statements and forward-looking information within the meaning of
applicable securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "may", "will", "project",
"should", "believe", "plans", "intends" and similar expressions are
intended to identify forward-looking information or statements.
More particularly and without limitation, this press release
contains forward-looking statements and information relating to
future capital expenditures, demand for High Arctic's services and
the sources and availability of funding. These forward-looking
statements and information are based on certain key expectations
and assumptions made by High Arctic. Although High Arctic believes
that the expectations and assumptions on which such forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information as High Arctic cannot give any assurance that they will
prove to be correct. Since forward-looking statements and
information address future events and conditions, by their very
nature they involve inherent risks and uncertainties. Actual
results could differ materially from those currently anticipated
due to a number of factors and risks. These include, but are not
limited to, prevailing economic conditions; commodity prices;
sourcing, pricing and availability of raw materials, component
parts, equipment, suppliers, facilities and skilled personnel;
dependence on major customers; uncertainties in weather and
temperature affecting the duration of the service periods and the
activities that can be completed; health, safety and environmental
risks; exchange rate fluctuations; marketing and transportation;
loss of markets; environmental risks; governmental regulations;
competition; incorrect assessment of the value of acquisitions;
failure to realize the anticipated benefits of acquisitions;
ability to access sufficient capital from internal and external
sources; failure to obtain required regulatory and other approvals;
and changes in legislation, including but not limited to tax laws,
royalties and environmental regulations.
Readers are cautioned that the foregoing list
of risks and uncertainties is not exhaustive. Additional
information on these and other risk factors that could affect High
Arctic's operations or financial results are included in High
Arctic's annual information form and may be accessed through the
SEDAR website (www.sedar.com). The forward-looking
statements and information contained in this press release are made
as of the date hereof and High Arctic does not undertake any
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
SOURCE High Arctic Energy Services Inc.