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CALGARY, Alberta, Jan. 16, 2023 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” is pleased to announce that it has closed the sale of its Canadian well servicing business (“Well Servicing Transaction”) on receipt of the final cash payment of $28.0 million earlier today. The Corporation repaid $3.6 million of mortgage principal related to the real estate properties included in the Well Servicing Transaction during December 2022.
The Well Servicing Transaction was announced by the Corporation on July 18, 2022 with an effective date of July 29, 2022. The sale was transacted through an asset purchase agreement for an aggregate sale price of $38.2 million in cash, of which $10.2 million was previously received on July 28, 2022.
The receipt of the funds today further strengthens High Arctic’s financial position. Cash balances, less mortgage liabilities and bank debt, exceed $42 million as of January 16, 2022. This strong cash position provides High Arctic with flexibility to fund business development and further its track record of shareholder returns.
Over the past ten years High Arctic has carried a conservative capital structure while returning significant shareholder value through dividends and share buybacks of approximately $110 million.
About High Arctic
High Arctic is an energy services 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 nitrogen services and pressure control equipment on a rental basis to exploration and production companies.
For further information, please contact:
Chief Financial Officer