Can you please provide us with an overview of DLS Archer and its history in Argentina?

DLS Archer was founded 40 years ago and is a drilling company that operates in the Neuquén and Golfo San Jorge Basins. It is part of the Archer group, and its core business focuses on drilling rigs, workover rigs, pulling units, and fluid services for drilling wells. While the company’s primary focus is in Argentina, it has operations in North America, Europe, and all over Latin America.

How has DLS Archer developed since its inception, and what role does Argentina play in the company’s global operations?

We generate approximately $600 million in revenue annually and has 3,200 employees across South America. Argentina accounts for 25% of its revenue and profits. However, due to a decrease in oil prices in 2009, the company has seen a decline in profitability in recent years. Additionally, increasing costs and more restrictions on labor laws have impacted the company’s margins in Argentina.

What has been the significance of DLS Archer’s recent $180 million investment?

DLS Archer has invested $180 million in new equipment and high-end technology over the last two years. The investment will finance the purchase of 13 new drills, which will support the expansion of operations in the Vaca Muerta area with Yacimientos Petrolíferos Fiscales and Pan American Energy. In addition, the company has hired over 800 people during this time, providing six months of training for each new employee to ensure they have the necessary skills to power the company’s expansion. Although the company does not expect to see immediate returns on these investments, it is confident that they will pay off over the next six years.

How competitive is the drilling services market, and what sets DLS Archer apart?

DLS Archer currently has 25% of new rigs on the market in Argentina. Its biggest competitor in high tech is Helmerich & Payne, who have brand new rigs, while DLS Archer is focused on refurbishing and setting up its new rigs. In the past, San Antonio was a key competitor, but due to financial constraints, they were unable to invest as much as DLS Archer has in recent years. Nowadays, growth factors include keeping equipment new and technology competitive, which are areas that DLS Archer is focused on. The company is also working on developing its own oil-based mud fluid, which will give them a competitive advantage.

Where can we expect to see DLS Archer in the near future?

DLS Archer aims to turn its $180 million investment profitable over the next five years. The company is currently the biggest player in high-end drilling rigs in the market, which puts them in a prime position to grow as Vaca Muerta and Neuquén continue to develop.