Archer acquires Managed Pressure Drilling service provider

31 Jul 2024 16:05 CEST

Hamilton, Bermuda (July 31, 2024)

Archer has entered into an agreement with Air Drilling Associates, Inc to
acquire their Managed Pressure Drilling ("MPD") subsidiary ADA Argentina
("ADA").

ADA provides MPD services to Archer's largest customers in the Vaca Muerta basin
in Argentina. MPD is an adaptive drilling process used to precisely control the
annular pressure profile throughout the wellbore. Currently ADA owns and
operates three MPD systems and a fourth set will be provided by the sellers as
part of the transaction.

The purchase price is paid with cash generated by Archer's existing operations
in Argentina and will be settled over three years. The transaction is expected
to be cash positive after less than two years and is expected to increase
Archer's 2025 EBITDA by 2-4%.

Dag Skindlo, CEO in Archer comments: "This acquisition fits well with Archer's
strategy of synergetic and accretive bolt-on acquisitions. The technology and
services will integrate with Archer's fleet of high spec drilling rigs and
provide our clients with advanced integrated MPD services. The investment
supports our clients as they grow their activity in Vaca Muerta, the second
largest non-conventional gas and fourth largest non-conventional oil reserve in
the world."

Gerado Molinaro, VP of Land Drilling, adds "There are numerous governmental and
client driven initiatives that support the long-term growth of drilling and
completion activity in the Vaca Muerta basin, recently evidenced by new
legislation for large investments in Argentina and Pan American Energy's 20-year
agreement for gas export with FLNG provider Golar LNG. Together with YPF's
strategy and related investment commitments, these new agreements set the
foundation for increased oil and gas export and provide the condition for our
continued growth in Argentina."

For additional information please contact:

Dag Skindlo, Chief Executive Officer | Mobile: +47 982 26 624 | Email:
dag.skindlo@archerwell.com

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

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