CHC Helicopter Awarded New Service Contracts

CHC Helicopters International has entered into new agreements with incremental revenues of $28.5 million (all values in CDN).

CHC is expanding to Venezuela with two Sikorsky S61Ns on a two-year contract with an estimated value of $13.5 million, commencing November 1 of this year. CHI has entered into an agreement with a Venezuelan aircraft operator, Aerotecnica, to provide helicopter support services to PDVSA for offshore work near Pedernales, on the northeast coast of Venezuela. CHI plans to lease the aircraft from third parties for a term equal to the length of this contract.

CHI has been awarded a contract by Petropars/Enterprise Oil to provide one Bell 212 for helicopter support in the Persian Gulf, operating out of Kish Island for the South Pars drilling project. The aircraft has been added to our fleet and is already on site. This one year contract has a further one option year and an estimated value of more than $8 million over two years.

CHI is expanding operations for Unocal in Southeast Asia as the market for medium and heavy helicopters continues to grow. Unocal has agreed to a two year contract, starting October 1 of this year, for an additional Sikorsky S61N, bringing its total aircraft to four primary machines - two Sikorsky S61Ns and two Sikorsky S76A++. The additional S61 was previously used by CHI as a non-revenue generating back-up aircraft. The addition of this aircraft to the primary fleet adds $7 million in revenue for CHI.

Total anticipated revenue for the above contracts is a minimum of $28.5 million.

Chairman and CEO Craig L. Dobbin stated: "These international contracts are further evidence of CHC's continued ability to secure oil services contracts worldwide for medium and heavy helicopters. In addition, more than 75% of business is long-term and therefore we will continue to experience high utilization of our aircraft for the foreseeable future."