High Arctic Declares Monthly Dividend and Provides PNG Operational Update

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CALGARY, Alberta, Oct. 21, 2022 (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 November 14, 2022 to holders of High Arctic common shares of record at the close of business on October 31, 2022. The dividend is designated as an “eligible dividend” for Canadian Income Tax purposes.

The Corporation also advises that High Arctic is progressing work preparing third-party owned Drilling Rig 103 in Papua New Guinea. Preparation work now includes an upgrade of the topdrive, increasing the torque capacity, improving the versatility of well designs that the rig can drill. The procurement is well advanced, and the delivery, installation and commissioning is expected to be completed in early Q1 2023, with drilling operations commencing shortly thereafter.

Mike Maguire, CEO of High Arctic, stated, “This upgrade to Rig 103 enhances the rigs drilling capability, and gives High Arctic and our customer confidence of the Rig’s ability to reliably and efficiently deliver the wells planned in the contract drilling campaign.”

On August 1, 2022 High Arctic announced a three-year contract renewal for Drilling Rig 103 and High Arctic’s services related to the supply of personnel, camp accommodation and rental equipment to support the drilling operations, effective August 1, 2022 and including options to further extend the contracts on the same terms and conditions beyond July 31, 2025.

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: installation and commissioning is expected to be completed in early Q1 2023.

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

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