Archer Finalizes Great White Acquisition

Archer has concluded satisfactory due diligence and obtained antitrust approval for its announced acquisition of the Great White Energy Services group of companies (Great White).

In light of recent development in the financial markets, Archer and Wexford Capital LP have agreed to reduce the purchase price for Archer's acquisition of Great White from USD 742 million to USD 630 million on a cash and debt free basis. Following cash settlement on Wednesday, August 24th, the transaction will be complete.

The transaction is fully financed by Archer's existing bank syndicate (comprising Danske Bank A/S as Coordinator and Facility Agent, DnB NOR Bank ASA, Nordea Bank Norge ASA, and Swedbank AB (publ)) through a combination of bank debt and a bridge facility which is due on December 31, 2011.

Based on the reduced price, the Board will optimize the refinancing of the bridge facility through shareholder loans, subordinated debt, unsecured bond financing, equity or a combination thereof. To expedite the financing, Archer's largest shareholders, Seadrill and Lime Rock, have given certain undertakings to the lending banks including upholding their total ownership share in any equity offering.

Archer's President and CEO, Jorgen P. Rasmussen, said, "We are pleased to be able to complete this transaction despite recent events in the stock market as the strategic fit with Archer is fantastic, and we are still maintaining our positive view of the business in 2011 and 2012. With this acquisition we have further improved the value for Archer shareholders."