Hamilton, Bermuda (May 10, 2017)
Archer Limited ("Archer") announces that PanAmerican Energy («PanAmerican») will award Archer's subsidiary DLS Argentina Ltd. Surcusal a four-year contract for the provision of Drilling, Workover and Pulling Services for PanAmerican's Cerro Dragon field in the Golfo San Jorge basin in southern Argentina.
Archer has provided Drilling, Workover and Pulling Services for PanAmerican since Archer's acquisition of the business in 2011 and the current contract reaffirms the two companies' commitment to production and further exploration in the Golfo San Jorge basin. The new contract, in process of final PanAmerican board approval, will commence immediately and will cover a period of four years until May 2021. PanAmerican has the option to extend the contract for an additional two-year term. The contract covers all existing drilling and service rig activity, at present comprising 7 drilling rigs, 11 workover rigs, and 11 pulling units with annual revenues in excess of USD 175 million. PanAmerican has the flexibility to adjust the level of activity up or down over the contract term, and the contract rewards Archer with performance incentives tied to achieving operational targets. As part of the new contract, DLS will continue a fleet modernization program including leasing four high spec super single drilling rigs and purchasing new pulling units.
Max Bouthillette, President Western Hemisphere, commented, "PanAmerican is a leading player for the oil and gas industry in Argentina and we are pleased to continue our long established relationship for at least another four years. This new contract provides a vote of confidence for the industry, community, and union personnel in Comodoro, Argentina and we look forward to the continued development of a sustainable market for all stakeholders. PanAmerican and Archer remain committed to delivering safe operations and cost effective operations."
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
