High Arctic Energy Services L.P

CORPORATE HISTORY
Since its inception in 1993, High Arctic's focus has been on growth and development. In the early to mid 1990's, growth was achieved through equipment builds and the acquisition of smaller companies. In 1997 High Arctic introduced the Stand Snubbing System. More recently, High Arctic's expansion has primarily been through the introduction of new technology. The current focus of High Arctic is on structured growth and the development of the new underbalanced technology for it's diversified product lines. In 2003, High Arctic introduced and implemented the use of "The Viking", the world's first Electric Hydraulic Workover Rig of its kind, designed for gas cavern programs. As well, High Arctic shifted its International focus to the Middle East and Caspian Sea regions and hired an International representative, believing that international opportunities were available for Canadian companies that could supply new, state of the art underbalanced equipment and services. "The Banff", High Arctic's largest HWR, was built in Alberta and transported to Dubai, United Arab Emirates, operating under a two year contract. As additional equipment and manpower were required to satisfy it's new international customer base, High Arctic set up a manufacturing facility in Dubai that has continued to grow. "The Cadomin" was constructed entirely in it's Dubai manufacturing facility. This HWR was designed to be modular in design , affording accessibility to small offshore platforms, and requiring substantially smaller marine support vessels. Nitrogen and Air Pumping, Underbalanced Surface Recovery, Rotating Flow Diverter and 250K CDWS Rig services were added to High Arctic's product lines in the first quarter of 2005 completing High Arctic's transition from a well control company to an underbalanced service provider. A substantially larger corporate facility in Red Deer, Alberta was leased in 2004 to provide space for High Arctic's fleet, training facility and training wells used by its training program. In July 2005, the High Arctic Inc. completed the Reorganization and Initial Public Offering. Pursuant to the Initial Public Offering, 8 400 000 Trust Units were issued at a price of $10.00 per unit for gross proceeds of $84 000 000.00 The Initial Public Offering was led by Canaccord Capital Corporation and included Sprott Securities Inc., Lightyear Capital Inc., J.F. Mackie & Company Ltd., Haywood Securities Inc. and Wellington West Capital Markets Inc.		On September 1, 2005, High Arctic Inc. acquired all the assets of Alberta Mobile Air Services 1998 Inc. (AMA), an Edmonton based private oilfield service company. These assets consist of equipment used to provide portable compression services to the drilling and pipeline industries, including underbalanced drilling with air-generated nitrogen from skid-mounted units and the purging and air drying of pipelines. On October 14, 2005, the High Arctic Inc. exercised its option to acquire 10% of the outstanding shares of Sense EDM (Sense/EDM). The entity is based in Norway and is a designer and manufacturer of drilling and well-service equipment. The High Arctic Inc. currently uses Sense/EDM equipment in its operations, has an exclusive license for use of their patented drilling technology and acquired one rig from Sense/EDM in 2005. Additionally, the High Arctic Inc. has agreed to purchase nine rigs from Sense/EDM for delivery in 2006 to 2007. The High Arctic Inc. also holds an option to purchase an additional five rigs. In February, 2006, the High Arctic Inc. purchased the assets of Kamber Well Service Ltd. The purchase included two rigs and related support equipment. In June 2006 The Rapid Drilling Rig was introduced to the market enabling High Arctic to offer and underbalanced service from Drillbit to completion.

CORPORATE HISTORY

Since its inception in 1993, High Arctic's focus has been on growth and development. In the early to mid 1990's, growth was achieved through equipment builds and the acquisition of smaller companies. In 1997 High Arctic introduced the Stand Snubbing System. More recently, High Arctic's expansion has primarily been through the introduction of new technology. The current focus of High Arctic is on structured growth and the development of the new underbalanced technology for it's diversified product lines.

In 2003, High Arctic introduced and implemented the use of "The Viking", the world's first Electric Hydraulic Workover Rig of its kind, designed for gas cavern programs. As well, High Arctic shifted its International focus to the Middle East and Caspian Sea regions and hired an International representative, believing that international opportunities were available for Canadian companies that could supply new, state of the art underbalanced equipment and services. "The Banff", High Arctic's largest HWR, was built in Alberta and transported to Dubai, United Arab Emirates, operating under a two year contract. As additional equipment and manpower were required to satisfy it's new international customer base, High Arctic set up a manufacturing facility in Dubai that has continued to grow. "The Cadomin" was constructed entirely in it's Dubai manufacturing facility. This HWR was designed to be modular in design , affording accessibility to small offshore platforms, and requiring substantially smaller marine support vessels.

Nitrogen and Air Pumping, Underbalanced Surface Recovery, Rotating Flow Diverter and 250K CDWS Rig services were added to High Arctic's product lines in the first quarter of 2005 completing High Arctic's transition from a well control company to an underbalanced service provider. A substantially larger corporate facility in Red Deer, Alberta was leased in 2004 to provide space for High Arctic's fleet, training facility and training wells used by its training program.

In July 2005, the High Arctic Inc. completed the Reorganization and Initial Public Offering. Pursuant to the Initial Public Offering, 8 400 000 Trust Units were issued at a price of $10.00 per unit for gross proceeds of $84 000 000.00 The Initial Public Offering was led by Canaccord Capital Corporation and included Sprott Securities Inc., Lightyear Capital Inc., J.F. Mackie & Company Ltd., Haywood Securities Inc. and Wellington West Capital Markets Inc.

On September 1, 2005, High Arctic Inc. acquired all the assets of Alberta Mobile Air Services 1998 Inc. (AMA), an Edmonton based private oilfield service company. These assets consist of equipment used to provide portable compression services to the drilling and pipeline industries, including underbalanced drilling with air-generated nitrogen from skid-mounted units and the purging and air drying of pipelines.

On October 14, 2005, the High Arctic Inc. exercised its option to acquire 10% of the outstanding shares of Sense EDM (Sense/EDM). The entity is based in Norway and is a designer and manufacturer of drilling and well-service equipment. The High Arctic Inc. currently uses Sense/EDM equipment in its operations, has an exclusive license for use of their patented drilling technology and acquired one rig from Sense/EDM in 2005. Additionally, the High Arctic Inc. has agreed to purchase nine rigs from Sense/EDM for delivery in 2006 to 2007. The High Arctic Inc. also holds an option to purchase an additional five rigs.

In February, 2006, the High Arctic Inc. purchased the assets of Kamber Well Service Ltd. The purchase included two rigs and related support equipment.

In June 2006 The Rapid Drilling Rig was introduced to the market enabling High Arctic to offer and underbalanced service from Drillbit to completion.