The formalization of the contract follows High Arctic’s conclusion of a leasing agreement with the rig owner based in Australia. The rig is currently located in Perth Australia and High Arctic is working with both its customer and the rig owner to conduct acceptance testing in the coming weeks in preparation for the export of the rig to Port Moresby in September 2017.
The contract rates are effective from the clearance of the rig in to PNG for an initial term of six months, with provision for extensions for a total term of up to eighteen months. After a short period transporting the rig to the first well site, drilling operations are expected to commence early in the fourth quarter of 2017.
The project is to prove the efficacy of a small footprint rig for field optimisation work in areas with or close to existing roads, and the Company is optimistic that success could lead to unlocking further opportunity for our customers to explore and develop in this current tight market cycle. It is intended that the contract would roll in to the recently announced 50/50 joint company.
Mike Maguire, President International commented, “We are pleased to be able to work collaboratively with our customer to find new and innovative ways to sustainably drive exploration and development activity in cost sensitive projects. The joint work undertaken over many months to select and refine the fast moving rig package builds on our strong working relationship and provides a blue print for the recently announced 50/50 joint company.”
