High Arctic Declares Monthly Dividend and Provides PNG Update

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CALGARY, Alberta, March 24, 2023 (GLOBE NEWSWIRE) — High Arctic Energy Services Inc. (TSX: HWO) “High Arctic” or the “Corporation” is pleased to announce that its Board of Directors has approved a monthly dividend payment of $0.005 per share to holders of common shares. The dividend is payable on April 14, 2023 to holders of High Arctic common shares of record at the close of business on March 31, 2023. The dividend is designated as an “eligible dividend” for Canadian Income Tax purposes.

The Corporation is also pleased to announce the re-commencement of in-wellbore operations with Rig 103 in Papua New Guinea (“PNG”) as previously forecast. Rig 103 is expected to remain active throughout the remainder of 2023 and through the term of its contract. Mike Maguire, CEO of High Arctic, stated, “I am very proud of our PNG team’s efforts to prepare and upgrade Rig 103, while building on our record of safety excellence. This is the first drilling operation following the merger of Oil Search into Santos Limited and follows substantive planning and cooperation aimed at making it a successful operation for all stakeholders.”

This recommencement of drilling follows the recent announcement in PNG that the TotalEnergies led Papua-LNG project has commenced downstream front-end engineering and design (“FEED”) work on its way to a final investment decision later this year. Indications to this point suggest the Papua-LNG project will be based on four electric driven LNG liquefaction trains housed in the existing export facility outside PNG Capital Port Moresby. This facility is operated by Papua-LNG partner ExxonMobil for the country’s other LNG project. These developments support Management’s optimistic outlook on the gas development activities in PNG which are expected to lead to increased demand for drilling and related services.

High Arctic would like to remind investors that the Corporation intends to release its 2022 fourth-quarter results on Monday, March 27, 2023 after markets close and has scheduled a conference call to begin at 3:00 pm MT (5:00 pm ET) on Tuesday, March 28, 2023. The conference call dial in numbers are 1-800-952-5114 or 416-641-6104 and the participant passcode is 6292679#. Participants joining from outside North America can find international dial-in numbers at: https://www.confsolutions.ca/ILT?oss=7P1R8009525114.

The Corporation’s Fourth Quarter Financial Statements and Management’s Discussion & Analysis will be posted to High Arctic’s website and SEDAR after the results are released.

Forward-Looking Statements

This press release contains forward-looking statements. When used in this document, the words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “seek”, “propose”, “estimate”, “expect”, and similar expressions are intended to identify forward-looking statements. Such statements reflect the Corporation’s current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Many factors could cause the Corporation’s actual results, performance or achievements to vary from those described in this press release.

Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking statements prove incorrect, actual results may vary materially from those described in this press release as intended, planned, anticipated, believed, estimated or expected. Specific forward-looking statements in this press release include, but are not limited to, statements pertaining to the following:

• Rig 103 is expected to remain active throughout the remainder of 2023 and through the term of its contract.
• front-end engineering and design (“FEED”) work on its way to a final investment decision later this year, and
• optimistic outlook on the gas development activities in PNG which are expected to lead to increased demand for drilling and related services.

The Corporation’s actual results could differ materially from those anticipated in these forward-looking statements as a result of the risk factors set forth above and elsewhere in this press release.

The forward-looking statements contained in this press release are expressly qualified in their entirety by this cautionary statement. These statements are given only as of the date of this press release. The Corporation does not assume any obligation to update these forward-looking statements to reflect new information, subsequent events or otherwise, except as required by law.

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:

Lance Mierendorf
Chief Financial Officer
1.587.318.2218
1.800.668.7143

High Arctic Energy Services Inc.
Suite 2350, 330–5th Avenue SW
Calgary, Alberta, Canada T2P 0L4
website: www.haes.ca
Email: info@haes.ca