Five rigs coming soon, option on 10 more

High Arctic Energy Services Trust is forging ahead with an ambitious $75-million plan to add 15 high-tech rigs to its fleet.

The trust announced this week that production and delivery of five high-tech drilling, workover and snubbing rigs is on schedule for delivery by next March.

High Arctic president and CEO Jed Wood confirmed all systems were go on a recent trip to the Norwegian manufacturer EDM/Sense.

An option on 10 more of the $5-million rigs has been exercised and they will be delivered between July 2006 and May 2007.

When the order is filled, High Arctic's fleet will be boosted from 43 to 28 rigs.

Wood said Thursday the company can maintain a competitive advantage by ensuring the rigs are built and in the field earning revenue as soon as possible.

The first rig has been out in the field since June and performed well.

"We put a lot of operating hours on it. We had some modifications to make to it. We're quite happy with it. It enabled the oil company to drop quite a few days off their work programs. It's added quite a lot of savings."

The company took a cautious approach to the new technology. It held off filling the next order until High Arctic was sure it had the right design.

EDM/Sense designs and manufactures the main components of the rigs including hoisting and hydraulic components, operating system and tower. Final assembly and commissioning will be handled by High Arctic in its Edgar Industrial Park plant.

The rig purchases also put the company farther down the road to becoming a global leader in underbalanced drilling.

Wood said he plans to order more rigs as long as the oilpatch continues to maintain its pace. And so far there are no dark clouds looming for the industry.