High Arctic Launches 13 Million Dirham Facility at Hamriyah Free Zone
High Arctic Energy Services L.L.C., an international leader in specialized underbalanced oilfield drilling (UBD) and production services, announced that its AED13 million (US$ 3.5 million) facility in Sharjah’s Hamriyah Free Zone has officially opened for business. The facility will primarily be utilized to design, develop and build combination drilling, workover and snubbing rigs.
“Our commitment to the GCC is evident from our investment activity in the region and is a product of our growing business interests. We made a strategic decision six years ago to locate our international headquarters in Dubai which has become our launching pad into the markets of Africa, the Central European States and Asia,” said Jed Wood, President and CEO of High Arctic. “Hamriyah is a perfect solution for us to grow our business. We have already decided to double our existing facility by buying and setting up on an adjacent plot of land, and have already shipped our first RAPAD rig, worth some AED 37 million (US$ 10 million), to a client in Thailand.”
During his visit to inaugurate the facility, Wood stated that revenue from the GCC (Gulf Cooperation Council countries) was expected to reach AED88 million (US$24 million) by year’s end, which accounts for 20 percent of the company’s total global revenues of AED440 million (US$120 million).
“Our forecasts project that 50 percent of our global revenue could be generated from the GCC in 2009, and the growth markets include Oman, Yemen, the UAE, the Kingdom of Saudi Arabia and Kuwait in the GCC, Ukraine and Armenia in the CES and East Asia and Papua New Guinea in Australasia.” continued Wood. “With renowned expertise in underbalanced drilling, we have been able to service international oil and gas giants such as Aramco, BP, Shell and Nexon.”
Underbalanced drilling refers to the practice of intentionally drilling a well with borehole pressure less than the formation bore pressure, thus allowing formation fluid to more freely flow into the wellbore while managing the hydrocarbons and associated pressures with surface support equipment. Underbalanced drilling has become an increasingly important technology in the Canadian and international oil and natural gas sector especially in maturing production areas.
Benefits of underbalanced drilling methods include an increased speed of drilling, a reduction in fluid invasion into the production formation thus minimizing damage, rapid indication of hydrocarbons during drilling, optimized production in existing wellbores, reduction or elimination of stimulation costs (i.e. fracing, acid stimulation), reduction of overall project cost and maximization of ultimate hydrocarbon recovery.
High Arctic employs over 700 professionals and its head office is located in Red Deer, Alberta, Canada. With 150 employees out of its international office in Dubai, the company maintains regional locations in Crimea, Ukraine, Yerevan, Armenia, Dammam, Muscat and Port Moresby, Papua New Guinea.
With revenues growing at an annual rate of 50 percent since its inception in 1993, High Arctic listed on the Toronto Stock Exchange in July 2005, an IPO that raised AED308 million (US$84 million). During the period between July 2005 and the second quarter of 2006, the company invested AED313 million (US$85.3 million) in new capital.
About High Arctic Energy Services:
High Arctic, through its subsidiaries, is a global oilfield drilling and production business, providing specialized underbalanced drilling and production services to the Canadian and International oil and gas industry. High Arctic's new underbalanced drilling technology and equipment is recognized for its ability to improve oil and gas production capabilities and is expected to develop greater acceptance in international markets. Based in Red Deer, High Arctic has domestic operations in Alberta, British Columbia and the Northwest Territories. International operations are currently active in the Middle East, Southeast Asia, and former Soviet Republics.
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