Patterson‑UTI Energy (PTEN) announced a multi‑year lease of two high‑spec APEX 1500® drilling rigs to Archer Ltd. for deployment in Argentina’s Vaca Muerta shale formation. The APEX 1500 rigs are 1,500‑horsepower, AC‑powered, pad‑capable machines that combine automation, rapid move‑in capability and low emissions, making them well suited to the multi‑well pads common in Vaca Muerta.
The lease positions PTEN to supply advanced rig technology to a key growth area for natural‑gas‑powered drilling. Archer will cover all preparation, upgrade and mobilization costs, allowing PTEN to generate a steady revenue stream without immediate capital outlay. The agreement also includes performance‑based incentives tied to drilling outcomes, creating a long‑term partnership that aligns PTEN’s interests with Archer’s operational success.
The deal supports Archer’s $600 million, five‑year contract with YPF for seven rigs, of which two are leased internationally. By providing the rigs for this contract, PTEN expands its presence in Argentina beyond its existing drill‑bit business (Ulterra) and taps a market that is central to Argentina’s strategy to increase natural‑gas exports and reduce import dependence.
Mike Holcomb, PTEN’s Chief Operating Officer, said the partnership demonstrates the company’s ability to deliver high‑spec rigs to unconventional plays and underscores PTEN’s strategy to monetize its advanced rig technology. He added that the long‑term lease will help the company maintain high utilization of its U.S. fleet while supporting Archer’s expansion in South America.
Financial terms of the lease were not disclosed, but the multi‑year arrangement is expected to generate a reliable revenue stream and potential performance bonuses. The agreement is a material event that strengthens PTEN’s international growth trajectory and enhances its competitive position in the global drilling services market.
The Vaca Muerta play is one of the world’s largest unconventional hydrocarbon deposits, and Argentina’s push for natural‑gas exports makes this lease strategically significant for PTEN’s long‑term expansion plans.
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