High Arctic Energy Services Inc. (High Arctic) has announced that its Board of Directors has approved a capital budget of CAN$36 million for 2015.
This budget will be used to complete previously announced capital spending projects and to address maintenance and incremental growth opportunities next year.
The budget includes CAN$31.8 million of capital expenditures, which consists primarily of the previously announced upgrading and commissioning of two drilling rigs. Growth spending in 2015 will also include rental equipment and ancillary snubbing equipment for the Canadian operations to address specific customer needs. Budgeted maintenance capital expenditures in 2015 of CAN$4.2 million will ensure that the equipment in both Papua New Guinea (PNG) and Canada continue to operate at the highest industry standards.
Asian LNG imports
Tim Braun, High Arctic CEO, commented: "The long term demand for clean energy in Asia will in part be fulfilled by LNG imports. Papua New Guinea with its large natural gas reserves, and operating LNG export facility, is well positioned to help fulfill this demand. High Arctic will benefit from this opportunity as a substantial portion of our revenue is earned operating under fixed term contracts in PNG. We continue to evaluate other growth opportunities in both PNG and Canada, and recognise that this capital budget provides flexibility to increase our capital spending throughout the year if expansion opportunities materialise."
Adapted from press release by Katie Woodward