06/11/2015 -

Archer Limited : Trading update

(Hamilton, Bermuda) - June 11, 2015 - Although we continue to make good progress on our cost reduction initiatives which has limited the impact of adverse trading conditions on the Group, we now expect a lower than anticipated financial performance in the second quarter 2015 as compared with guidance provided at the end of the first quarter 2015.

This is predominately the result of a higher than anticipated decline in revenue in North America, currently estimated to be approximately 35% below the first quarter, as well as higher costs incurred in our Latin America operation, where we expect operating costs to be approximately $10 million above the first quarter, resulting in part from several one-time severance, repair and other start-up expenses.

David King, Chief Executive Officer, stated, "The current market environment is very challenging and has limited near-term visibility. The additional reductions in our revenue are a reflection of the continued pressure our industry is facing. We are doing all we can to minimize the financial effects and I believe that as a result of our cost management efforts as well as the investments made we will see improvements during the second half of 2015 compared to the second quarter 2015."

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CONTACTS

For Investors:

Joachim Houeland
Corporate Treasurer and Investor Relations
(+47) 51 30 80 00
Joachim.Houeland@archerwell.com

For Media:

Dustin Childers
Director of Marketing
+1 713 856 4222
dchilders@archerwell.com

This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.