Archer Limited: Archer acquires P&A specialist Romar-Abrado and increases guidance for 2023

10 Jan 2023 07:58 CET

Hamilton, Bermuda (January 10, 2023)

Archer Limited is pleased to announce that we have closed the acquisition of
Romar-Abrado. The acquisition is based on an enterprise value of USD 8 million,
plus earn-out pending trading performance over 2023 to 2025. The acquisition is
conducted on a debt free basis and financed by available cash at hand.

Romar-Abrado offers advanced milling and SWARF handling services to the global
Plug and Abandonment ("P&A") market. Its combined approach and first-class
operating knowledge provide innovative technologies through integrated milling
and SWARF handling services to deliver permanent, verifiable, and emission-free
well barriers and highly predictable alternative zonal isolation P&A solutions.
Romar-Abrado employs 50 people with revenue of approximately USD 10 million in
2021.

Dag Skindlo, CEO of Archer:

"We are pleased to announce the investment in Romar-Abrado, continuing our
growth within our well services segment. The acquisition is another value
creating investment which expands our capabilities within workover operations
and well abandonment. Romar-Abrado fits well with our strategy for brownfield
and P&A.  We expect activity to increase within these markets going forward as
fundamentals and outlook remain strong. In addition, the transaction will
contribute to the acceleration of our international expansion within the well
services segment."

Nicholas Pantin, VP Archer Oiltools:

"We are pleased to welcome the Romar-Abrado team to Archer. The Romar-Abrado
organization will further strengthen our team and product portfolio. Oiltools
has over the last few years developed a heavy intervention service offering with
broad applications within slot recovery and well P&A. Our services have been
developed around steel retrieval and steel recovery as well as establishing
barriers through plugs and annular remediation. Technologies around steel
removal through milling and section milling will allow Archer to offer end to
end solutions. The acquisition of Romar-Abrado gives us a significant leap
forward and will contribute to future developments.

We are looking forward to advancing our product and solution offering together
with the Romar-Abrado team, as we seek to bring more value to our clients'
workover and intervention programs."

Jason Broussard, CEO of Romar-Abrado:

"We are happy to join forces with Archer to further develop and broaden our
products and services in Romar-Abrado. Archer is a great fit for the Romar
-Abrado business with their global footprint and service offering within
workover and abandonment."

This acquisition is accretive to Archers' key financial ratios. Based on this
acquisition and current trading, Archer increases the financial guidance for
2023. Our guidance for 2023 EBITDA is lifted to 20-25% above 2022 levels.

Read more about Romar-Abrado on the company's website:  www.romar-abrado.com

For additional information, please contact:

Dag Skindlo, Chief Executive Officer, Mobile:+4798226624, Email:
dag.skindlo@archerwell.com

Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email:
espen.joranger@archerwell.com

Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78
748, Email: joachim.houeland@archerwell.com

This information is subject to the disclosure requirements pursuant to section 5
-12 of the Norwegian Securities Trading Act.

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