High Arctic Energy Services Inc. (TSX: HWO) has had the contracts for two of its drilling rigs and related services in Papua New Guinea extended for three years.
The new contracts, with Oil Search Ltd., are expected to be signed in early July.
High Arctic said in a release that a liquefied natural gas facility in Papua New Guinea is expected to come on stream next year, and that this will provide a boost to the industry.
The contract extensions should position the company to participate in this activity, it said.
High Arctic operates three rigs in Papua New Guinea, plus support equipment, including camps. The third rig is under contract until May 2014.