Red Deer-based High Arctic Energy Services Inc. (TSX: HWO.TO) has approved a $23-million capital budget for 2012.
The company said on Thursday that $16 million of this figure is earmarked as growth capital, with the remainder to be used as maintenance capital. These expenditures are expected to be funded from operating cash flow, it said.
High Arctic said its growth capital spending would focus primarily on adding to its equipment rental fleet and expanding existing service offerings.
The company said it enjoyed strong activity in its domestic operations during the final quarter of 2011, with revenues from those operations expected to range between $15 million and $16 million. That would bring 2011 revenues to between $46 million and $48 million.
It attributed the improved demand for its services to the unconventional shale gas and liquid rich plays.