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High Arctic (TSX:HWO) shares updates on activity in Papua New Guinea
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  • High Arctic Energy Services (HWO) has announced updates on its business in Papua New Guinea
  • The company has agreed to terms with a major multi-national energy company to provide services for the abandonment of a legacy exploration well
  • High Arctic expects field operations to begin during Q4 2021
  • Additionally, the company's longest-standing customer in the country has extended existing contracts to August 2022
  • High Arctic provides drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry
  • High Arctic Energy Services (HWO) closed up by 6.06 per cent trading at $1.40 per share

High Arctic Energy Services (HWO) has announced updates on its business in Papua New Guinea.

The company has agreed to terms with a major multi-national energy company to provide services for the abandonment of a legacy exploration well.

The well abandonment requires High Arctic to deploy its heli-portable Rig 115 and two 100-bed heli-portable camps accompanied by support equipment, personnel and services.

In the near term, the company plans to dispatch the first camp and ready the rest of the equipment, all of which is coming out of cold stack.

High Arctic expects field operations to begin during Q4 2021.

Mike Maguire, High Arctic's CEO, commented,

"We are excited to be bringing people back to work in PNG and building on the investment we have made in our local workforce and in the preservation of our assets. This first post-COVID deployment follows extensive planning and preparation with our customer and positions High Arctic well to execute future drilling activity in the area."

Additionally, the company's longest-standing customer in the country has extended existing contracts until August 2022.

"We are delighted with this re-affirmation of the value of our services to our key customer in PNG. The relationship is one of a symbiotic nature where both companies have enhanced the other over more than a decade," Maguire said.

The contracts follow recent positive developments in Papua New Guinea's natural resources sector. Prime Minister Marape indicated that terms have been agreed to for the Pasca-A gas condensate development and that the state will be commencing talks on the P’nyang gas field development later this month.

High Arctic provides drilling and specialized well completion services, equipment rentals and other services to the oil and gas industry.

High Arctic Energy Services (HWO) closed up by 6.06 per cent trading at $1.40 per share.

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