Firm eyeing joint drilling operation

HIGH Arctic continues to progress discussions with its customer in Papua New Guinea related to the formation of a joint drilling company.
Drilling operations continue under existing operating agreements, according to the company.
The corporation is currently operating five rigs in PNG, three of which are with its customer.
Rig 103 successfully completed its drilling assignment in P’nyang and has started the demobilisation to the forward base in the Southern Highlands where it will await its next assignment.
Rig 104 remains on standby in Muruk and is expected to commence movement to its next well shortly.
Landowner issues at the location on which Rig 405 is currently engaged in operations has resulted in a temporary suspension of operations.
The negotiation term under the initial letter of intent has expired.
But High Arctic and its customer remain active in progressing discussions relating to the potential formation of a top-tier consolidated drilling entity in PNG.
High Arctic chief executive Cameron Bailey said: “We are very pleased with the improvement in activity in Canada and the high rig utilisation the corporation has been able to achieve in Canada and PNG while maintaining its stellar safety and performance record.
“We remain active at reviewing international and domestic acquisition opportunities that complement our existing service offering which may result in increasing the capital budget in 2018.”
Current expectations are this suspension could last eight to 12 weeks.
High Arctic is working closely with its customer on this matter, with the goal to recommence operations as quickly as possible and complete the drilling operations in the most economical manner possible.
Rig 115 is being prepared to mobilise to its drilling assignment in Kimu with an anticipated spud date in April and Rig 116 remains under contract in Port Moresby.