RED DEER, Canada, July 6 /PRNewswire/ --

- Fully Underwritten by GE Energy Financial Services Affiliate

High Arctic Energy Services Inc. (TSX: HWO) ("High Arctic"), an
international oilfield services company, has secured a commitment on a fully
underwritten basis for up to $155 million of financing from a Canadian
affiliate of GE Energy Financial Services. The financing is comprised of up
to an CDN$80 million senior secured revolving credit facility and up to US$75
million of senior second lien loans.

This financing will be used to refinance High Arctic's credit facility,
in which the GE Energy Financial Services affiliate served as agent, and to
fund working capital and future opportunities. The GE Energy Financial
Services affiliate will also provide US$20 million in bridge financing until
the new financing is completed.

The senior secured revolving credit facility is for an initial term of
364 days and amounts available to be drawn are based upon a borrowing base
calculation that includes eligible accounts receivable and equipment. The
revolving facility bears interest at prime plus 0.8%. The senior second lien
notes have a term of 5.5 years, are repayable upon maturity, callable and
bear interest at a rate of LIBOR plus 8%. The revolving credit facility and
senior second lien loans are secured in a manner customary for such debt.

In securing these expanded commercial debt facilities, High Arctic has
withdrawn the previously announced US$130 million proposed bond financing
from the market.

"High Arctic is pleased to have this committed financing from GE Energy
Financial Services," said Jed Wood, President and Chief Executive Officer of
High Arctic. "I am confident that we have a stable financial platform that
allows us to pursue our long-term international growth strategy."

Forward-Looking Statements

This news release may contain forward-looking statements relating to
expected future events and financial and operating results of the Company
that involve risks and uncertainties. Actual results may differ materially
from management expectations as projected in such forward-looking statements
for a variety of reasons, including market and general economic conditions
and the risks and uncertainties detailed in the Company's MD&A and Annual
Information Form available on SEDAR. Due to the potential impact of these
factors, the Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise, unless required by applicable law.

About High Arctic

High Arctic, through its subsidiaries, is a global provider of
specialized oilfield equipment and services, including drilling, completion
and workover operations. 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, Canada, High Arctic has Canadian operations in
Alberta, British Columbia and the Northwest Territories. International
operations are currently active in the Middle East and Asia.

The TSX has not reviewed and does not accept responsibility for the 
adequacy or accuracy of this news release.