Archer acquires Managed Pressure Drilling service provider
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