AGM Statement

RNS Number : 0599X

Plexus Holdings Plc

30 November 2010

 



Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services

30 November 2010

Plexus Holdings PLC ('Plexus' or 'the Company')

AGM Statement

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® method of wellhead engineering will hold its Annual General Meeting ('AGM') today at which Ben van Bilderbeek will make the following statement:

"It gives me great pleasure to report on Plexus' progress, in particular in the high pressure/high temperature exploration wellhead market where we continue to win new customers in new international territories for our proprietary POS-GRIP friction-grip wellhead technology.  During the last financial period we maintained a consistent level of high pressure high temperature wellhead revenues, and trading for the first half of 2011 thus far is performing well and is ahead of management's expectations.

"As shareholders may be aware, Plexus' strategy and main business objective remains to provide oil and gas operators with superior wellhead technology which is safer and more cost effective than competing wellhead systems.  Our POS-GRIP equipment, and the technical engineering led solutions that it provides, are based on clearly defined principles which are that: the blow-out preventer for all surface oil and gas drilling applications should not be lifted from the well to enable the securing of casing and energising of seals; that all casing and tubing hangers should be locked down with sufficient capacity to withstand the forces that can manifest themselves in the well; that wellheads which have to provide effective sealing throughout and beyond the productive life of a well should be designed using sealing systems which have been proven to avoid the loss of integrity over time; and that wellhead equipment test standards need to reflect a system's ability to withstand 'true' field life conditions as well as matching the accepted higher standards of other critical performance items in the well such as casing and tubing couplings. We believe that the conditions for communicating these key messages are now more favourable than ever, and should accelerate POS-GRIP technology gaining wider acceptance and usage, not only for jack-up exploration drilling but also for production wellheads and subsea wellhead applications.

"We are particularly pleased to announce that in the past few weeks we have successfully concluded a dialogue regarding friction-grip technology with the American Petroleum Institute, a non-governmental organisation which has become the global proxy for oil and gas standards due to the significant influence of US corporations.  Plexus has always maintained that friction-grip technology for wellhead systems can fully meet the requirements of the API Spec 6A wellhead standards, whilst at the same time for certain applications significantly exceeding current accepted standards in critical areas such as annular seal integrity and hanger lock down capacity.  In addition API has confirmed that the design or method of suspending, retaining, or sealing casing hangers is not specified in API Spec 6A, and that API subcommittees do not evaluate specific designs or for that matter endorse a particular design practice.

"At the same time as communicating with the API, we commissioned Det Norske Veritas ('DNV'), one of the world's leading independent certification bodies, to perform an assessment of friction-grip technology which confirmed its compliance with the API 6A guidelines.  DNV also performed a detailed design assessment of a specific POS-GRIP product to further conclude that our engineering methods meet the API standards.

"In view of the above I am very pleased to announce that we have begun to market our range of POS-GRIP friction-grip wellhead equipment as being available in compliance with specified API Spec 6A standards, and the equivalent ISO 10423.

"The board believes that specifically these latest developments regarding accreditation of our proprietary technology will enable Plexus to more effectively market its products to those who rely on prescriptive standards rather than internal engineering analysis.

"Finally, as announced on 19 October 2010, I am pleased to confirm that the Board has recommended the payment of an increased final dividend of 0.39p per share for the year ended 30 June 2010 which will be submitted for formal approval at this AGM today."

**ENDS**

For further information please visit www.posgrip.com or contact:

Ben van Bilderbeek	Plexus Holdings PLC	Tel: [phone]
Graham Stevens	Plexus Holdings PLC	Tel: [phone]
Jon Fitzpatrick	Cenkos Securities PLC	Tel: [phone]
Ken Fleming	Cenkos Securities PLC	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

Notes to Editors:

Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a method of engineering for oil and gas field wellheads and connectors, POS-GRIP, which involves deforming one tubular member against another to effect gripping and sealing.

POS-GRIP wellhead systems have to date been used or selected to be used in over 150 oil and gas wells by international companies including Apache Energy Australia, BHP Billiton, BG International, Bowleven plc, BP, Brunei Shell Petroleum, Cairn Energy, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy Limited, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.

The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology.  It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration.

 

END

 

 

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