High Arctic sells rigs

Red Deer-based High Arctic Energy Services Inc. (TSX:HWO) announced on Wednesday that it’s sold three rigs for US$14 million.

Red Deer-based High Arctic Energy Services Inc. (TSX:HWO) announced on Wednesday that it’s sold three rigs for US$14 million. The company said in a news release that the rigs were among a group of assets being marketed and were not used in 2009. Accordingly, the sale should not impact future operating earnings. The rigs are in the process of being shipped to the buyer in Asia, said High Arctic.

The proceeds from the sale will be applied against outstanding debt, reducing the balance owing on High Arctic’s senior credit facilities to $51.5 million. The company said it’s reduced its debt by almost $75 million over the past 20 months by selling assets. These have included High Arctic’s interest in a joint venture with Schlumberger.

High Arctic provides specialized oilfield equipment and services, including drilling, completion and workover operations. It is active in Western Canada and internationally.

In trading on the Toronto Stock Exchange on Wednesday, shares in the company closed at 20 cents, up five cents.