Archer Limited ("Archer") announces that Pan American Energy LLC ("Pan American") has provided a two year extension notification for Archer's drilling, workover and pulling services contract for Pan American's Cerro Dragon field in
the Golfo San Jorge basin in southern Argentina. Pan American has the flexibility to adjust the level of activity up or down over the contract term. The total estimated value of the contract extension, based on current activity level, is expected to be USD 200 million, subject to actual activity level, services provided, and final contract terms which are to be negotiated.
Dag Skindlo, CEO of Archer, commented, "Pan American is a leading player in the
oil and gas industry in Argentina and this contract extension reflects their
confidence in Archer's ability to deliver safe and cost-effective operations in
Argentina."
