Hamilton, Bermuda (August 31, 2018)

Archer Limited (OSE: Archer) has entered into a definitive agreement to sell AWC Frac Valves ("AWC") to a US based private equity fund for a consideration of USD 30 million on a debt- and cash-free basis. Archer can in addition receive an earn-out of up to USD 5 million based on full year 2018 results. The final purchase price will be subject to certain post-closing adjustments.

AWC, headquartered in Conroe, Texas, is a leading manufacturer and service provider of premium frac valves. The company has over the last two years managed an impressive turn-around and has increased revenue by more than 170% relative to 2016. In the last twelve months, AWC has contributed USD 32.0 million in revenue and USD 3.6 million in EBITDA to Archer.

CEO John Lechner comments:

"We are pleased to announce the divestment of AWC Frac Valves as part of our promise to focus the company service portfolio and de-leverage the company. This transaction follows the IPO of QES on the New York Stock Exchange earlier in the year. AWC has benefitted from the improved onshore US activity and we are pleased to be selling to a US based private equity investor committed to growing the business."

The transaction will close by end of day US Central Standard Time today, Friday 31st August. The transaction will generate an estimated accounting gain of USD 10 million to Archer, and the net proceeds of approximately USD 29 million will primarily be used for debt prepayments.

For more information, please contact:

Anders Engelsen, VP Corporate Business Development

Phone: +47 932 07 901

Dag Skindlo, CFO

Mobile: +47 982 26 624

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