Archer has signed an agreement with Houston’s Quintana Energy Services to add Archer’s well service operations in North America.
Well service operations include pressure pumping, directional drilling, pressure control and wireline divisions. These are transferred on a cash and debt free basis into Quintana Energy Services.
Archer’s US well services element employs 850 people.
The boards of both companies have approved the transaction. It is, however, subject to approval by the authorities and banks, as expected received by the end of 2015.
After completion of the transaction will Archers ownership in the combined company will be reported as minority interest. This, together with Archers Frac Valve Division in North America, will be reported under a new segment in Archer.
Well service operations in North America currently has around 850 employees.
In 2014 traded businesses for $656 million, while revenue per September this year is $ 228million. EBITDA was $63million in 2014, while in September this year was minus $30million.
Quintana Energy Services had a turnover of $493million in 2014 with an adjusted EBITDA of $115 million.
The combined entity will operate 408,000HHP, 23 coiled tubing units, 33 snubbing units, 24 cementing units, 23 nitrogen pumping units, 25 fluid pumping units, 86 wireline units, 120 directional kits and over 825 mud motors.
The combined company will be led by Rogers Herndon, chief executive of Qunitana.
He said: “QES and Archer’s North American business will benefit from increased scale and a solid liquidity position. While we will be very focused on integrating the businesses and realizing the well-defined efficiencies, we will continue to explore strategic opportunities to further enhance the platform.
