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, Alberta, Aug. 20, 2018 (GLOBE NEWSWIRE) -- High Arctic Energy Services Inc (“High Arctic”) is pleased to announce it has acquired all of the shares of Powerstroke Well Control Ltd (“Powerstroke”), increasing its snubbing and well service fleet and expanding its geographic footprint.
Powerstroke is a well service company established in 2004, currently operating a total of eight hydraulic work over units and a heavy capacity new build service rig and drilling package. Powerstroke is headquartered in Grand Prairie, Alberta, and has offices in Greeley, Colorado and Williston, North Dakota, where they have been successfully offering snubbing service and well services to companies operating in the Bakken, North Dakota and in the Niobrara, Colorado. The purchase price is a total of $9.4 million which consists of the reimbursement of costs for the new build service rig and the balance based on an adjusted EBITDA multiple of 5x for the established snubbing business.
The acquisition establishes an entry into the United States for High Arctic, where it plans on expanding its well service offering. The trend toward longer well bores and increased number of stages in each well bore has increased the demand for pressure control equipment required for well completions. After the acquisition High Arctic will own 17 snubbing units, making it the largest snubbing operator in Canada. Of the total fleet of 17 snubbing units it is planned that eight units will be marketed in the United States, initially focused on well service and completion work in the Niobrara and the Bakken.
The acquisition will also allow for immediate service rig equipment deployment in the United States, and increases High Arctic’s well service rig count to 58. As part of the acquisition Tim Dewald will join High Arctic as the Vice President, Pressure Services and Business Development and Matt MacLean will join as Vice President, US Operations.
Mr. J. Cameron Bailey, Chief Executive Officer commented: “We are very pleased we could form a business combination consisting of Powerstroke and High Arctic, as both companies have a reputation of providing very high-quality service to its clients. We are particularly excited about our ability to help build upon the success Powerstroke has had with its offering of services in the United States.”
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 is a market leader providing drilling and specialized well completion services and supplies rig matting, camps and drilling support equipment on a rental basis in Papua New Guinea. The Canadian and US operation provides well servicing, well abandonment, snubbing and nitrogen services and equipment on a rental basis to a large number of oil and natural gas exploration and production companies operating in Western Canada and the United States.
For further information contact:
J. Cameron Bailey
Chief Executive Officer
P: (587) 318-3826
E: cam.bailey@haes.ca
Jim Hodgson
Chief Financial Officer
P: 587-318-2218
E: jim.hodgson@haes.ca
