Archer

Archer Limited: Archer announces renewed contract and reduced activity in the south of Argentina

Hamilton Bermuda (April 28, 2025)

Archer announces that Pan American Energy ("PAE") is renewing the contracts for

9 pulling units and 8 workover units working in the south of Argentina. The

current contract expires in June 2025 and have been renewed for 3 years with

options for two additional years. The estimated backlog for the renewed contract

scope is around $210 million.

In parallel, Archer announces reduced activity in the region. Archer is working

closely with the local unions to reduce the impact on employees and the

community. The reduction in activity will in isolation reduce our backlog by

about $125 million.

We estimate an annualized revenue reduction for Archer of around 5%, but limited

impact on the annual cash flow for the group, as we reduce overhead cost,

working capital and maintenance investments in Argentina.

"Argentina's energy landscape is undergoing a significant transformation, with

investments and production shifting from mature conventional fields in the south

to the expanding shale resources of Vaca Muerta" comments Dag Skindlo, CEO of

Archer. "We see that investments are increasing in the Vaca Muerta field, which

has grown from about 6% of Argentina's total oil and gas output in 2017 to over

50% in 2024. Vaca Muerta is often compared to the more known fields like Permian

and Bakken in the US. With significant export pipeline projects ongoing from

Vaca Muerta, the drilling activity is set to grow meaningfully over the medium

to long term."

We will update our full year financial guidance during our first quarter release

but expect only minor revisions if any.

For additional information, please contact:

Espen Joranger, Chief Financial Officer, Mobile: +47 982 06 812, Email:

Joachim Houeland, Manager Treasury and Investor Relations, Mobile: +47 482 78

This information is subject to the disclosure requirements pursuant to section 5

-12 of the Norwegian Securities Trading Act.

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