High Arctic Energy Services L.P

INTERNATIONAL INFORMATION
High Arctic Energy Services (HAES) made its international presence in 2003. It started by setting up a 1 bay shop with offices in Dubai, United Arab Emirates, after identifying the opportunities for a Canadian based company offering new state of the art Underbalanced Technologies in the Middle East region. High Arctic International commissioned its first Hydraulic Workover Rig (a 460K Unit) in Canada and shipped it to the Middle East, where it was contracted for two years, allowing us to establish our presence in the Middle East Region as an Underbalanced Service Provider. As a result of the success of these operations, and the development of a solid client base, a manufacturing division was developed. As the Dubai operations continued to grow, a second Hydraulic Workover Rig (a 340k unit), was built completely within our manufacturing facility, with a new modular design facilitating easy access to smaller offshore platforms as well as requiring smaller offshore support vessels. As High Arctic International's reputation continued to grow, by offering quality service with a solid QHSE program, so did HAES' revenue base. High Arctic International commissioned a second 340K Hydraulic Workover Rig as well as a 120K Rig Assist unit. With 4 Hydraulic Workover Units available in the Middle East Region, High Arctic International was able to compete on the same level against the larger multinational service providers. With continued growth, High Arctic International opened a corporate office in early 2006 in Mamzar Ð Dubai, to better serve its clients. With the rapid growth of the international division, High Arctic International moved its fabrication facility to its new 4.5 acre facility in the Hamariyah Free Zone in August 2006. The new facility was developed around our QHSE management system. With state-of-the art manufacturing equipment and an ISO management system, our manufacturing facility has grown to become a revenue generating entity, building drilling rigs as well as equipment for various international oilfield companies. With the combination of our Air Drilling Services, and our state of the art UBD equipment, as well as our new RAPAD Drilling Rigs, High Arctic has proven to be an all-round Underbalanced Service Provider, allowing it to become an industry leader in Underbalanced Operations. Within the International division, High Arctic has the following product lines which it provides to its current and prospective customers in the current operating area of Turkmenistan, Armenia, Ukraine, Yemen , Iran, Saudi Arabia, United Arab Emirates, Tanzania, Democratic Republic of Congo, Thailand and Papua New Guinea: Drilling Rigs Hydraulic Workover Rigs Rig Assist Snubbing Units Underbalanced Surface Recovery Underbalanced Tool Rentals International Safety Services Nitrogen/Air Pumping Services Nitrogen Membrane Integrated Project Management High Arctic has replicated its domestic bundling of services in its operations in the Middle East. The international market now accounts for a continuously expanding percentage of High Arctic's growth.
DOMESTIC INFORMATION
Within the Domestic division, High Arctic has the following product lines and services which it provides to its customers in the operating areas of Alberta, Northern British Columbia the Northwest Territories and Yukon Territory: 250K Combination Drilling, Workover and Snubbing Rigs Hydraulic Workover Rigs Rig Assist Snubbing Stand Alone Snubbing Systems¨ Snub Fracing¨ Nitrogen/Air Pumping Services Underbalanced surface Recovery Underbalanced Tool Rentals Rotating Flow Diverters Heating Packages Integrated Project Management High Arctic has developed a number of new product lines that allow its Canadian customers to utilize High Arctic as a single source for underbalanced drilling, workover and completion services. Consolidating underbalanced services within a single service provider results in a reduced overall well cost and greater consistancy of performance.

INTERNATIONAL INFORMATION

High Arctic Energy Services (HAES) made its international presence in 2003. It started by setting up a 1 bay shop with offices in Dubai, United Arab Emirates, after identifying the opportunities for a Canadian based company offering new state of the art Underbalanced Technologies in the Middle East region.

High Arctic International commissioned its first Hydraulic Workover Rig (a 460K Unit) in Canada and shipped it to the Middle East, where it was contracted for two years, allowing us to establish our presence in the Middle East Region as an Underbalanced Service Provider. As a result of the success of these operations, and the development of a solid client base, a manufacturing division was developed. As the Dubai operations continued to grow, a second Hydraulic Workover Rig (a 340k unit), was built completely within our manufacturing facility, with a new modular design facilitating easy access to smaller offshore platforms as well as requiring smaller offshore support vessels.

As High Arctic International's reputation continued to grow, by offering quality service with a solid QHSE program, so did HAES' revenue base.

High Arctic International commissioned a second 340K Hydraulic Workover Rig as well as a 120K Rig Assist unit. With 4 Hydraulic Workover Units available in the Middle East Region, High Arctic International was able to compete on the same level against the larger multinational service providers.

With continued growth, High Arctic International opened a corporate office in early 2006 in Mamzar Ð Dubai, to better serve its clients. With the rapid growth of the international division, High Arctic International moved its fabrication facility to its new 4.5 acre facility in the Hamariyah Free Zone in August 2006.

The new facility was developed around our QHSE management system. With state-of-the art manufacturing equipment and an ISO management system, our manufacturing facility has grown to become a revenue generating entity, building drilling rigs as well as equipment for various international oilfield companies.

With the combination of our Air Drilling Services, and our state of the art UBD equipment, as well as our new RAPAD Drilling Rigs, High Arctic has proven to be an all-round Underbalanced Service Provider, allowing it to become an industry leader in Underbalanced Operations.

Within the International division, High Arctic has the following product lines which it provides to its current and prospective customers in the current operating area of Turkmenistan, Armenia, Ukraine, Yemen , Iran, Saudi Arabia, United Arab Emirates, Tanzania, Democratic Republic of Congo, Thailand and Papua New Guinea:

Drilling Rigs
Hydraulic Workover Rigs
Rig Assist Snubbing Units
Underbalanced Surface Recovery
Underbalanced Tool Rentals
International Safety Services
Nitrogen/Air Pumping Services
Nitrogen Membrane
Integrated Project Management

High Arctic has replicated its domestic bundling of services in its operations in the Middle East. The international market now accounts for a continuously expanding percentage of High Arctic's growth.

DOMESTIC INFORMATION

Within the Domestic division, High Arctic has the following product lines and services which it provides to its customers in the operating areas of Alberta, Northern British Columbia the Northwest Territories and Yukon Territory:

250K Combination Drilling, Workover and Snubbing Rigs
Hydraulic Workover Rigs
Rig Assist Snubbing
Stand Alone Snubbing Systems¨
Snub Fracing¨
Nitrogen/Air Pumping Services
Underbalanced surface Recovery
Underbalanced Tool Rentals
Rotating Flow Diverters
Heating Packages
Integrated Project Management

High Arctic has developed a number of new product lines that allow its Canadian customers to utilize High Arctic as a single source for underbalanced drilling, workover and completion services. Consolidating underbalanced services within a single service provider results in a reduced overall well cost and greater consistancy of performance.