Oilfield services firm Archer has entered into an agreement with Air Drilling Associates to acquire its managed pressure drilling (MPD) subsidiary ADA Argentina.
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, according the company.
"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,” said Dag Skindlo, CEO in Archer.