Red Deer’s High Arctic Energy Services Inc. (TSX: HWO) has been contracted to supply camp facilities for oilfield development in Papua New Guinea.
The company said in a release on Tuesday that it will provide an existing customer in the West Pacific country with a four-man pioneer camp and a 104-man oilfield camp. The first will be a self-sufficient camp for a small crew that will prepare locations for the arrival of the main camp.
Both camps will be heli-portable, and are expected to provide cost and environmental benefits by virtue of their reduced size. The can be transported by helicopter to subsequent locations.
Total cost of the camps is projected at $4.6 million, including transportation. A supplier in Dubai will build the camps for High Arctic, with an anticipated delivery date of November 2012.
High Arctic said it has now committed approximately $9.6 million this year for capital expenditures in Papua New Guinea.
High Arctic provides specialized oilfield equipment and services, including drilling, completion and workover operations. It is active throughout Western Canada, and has international operations in Papua New Guinea.
In trading on the Toronto Stock Exchange on Tuesday, shares in High Arctic closed at $1.63, down seven cents.