Follow on Contract in Oman

RNS Number : 3640T

Plexus Holdings Plc

05 January 2017

 

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

5 January 2017

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

Follow on Contract in Oman

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, has been awarded an order for a second well from Masirah Oil Limited ('Masirah'), a BVI based company majority owned by leading technology driven oil and gas company REX International Holdings Limited (REXIH: Singapore).  The new contract will see Plexus supply Masirah with its POS-GRIP Tersus Mudline equipment and 10,000psi adjustable rental exploration wellhead for the Karamah-1 exploration well offshore Oman. The estimated value of the contract to Plexus is US$285,000 with revenues expected to commence in January 2017. 

Karamah-1 will be drilled from the Aban VII Jackup rig and follows the successful drilling by Masirah (a new customer in a new territory) last year of the Manarah-1 well, which was drilled using Plexus' POS-GRIP wellhead equipment (see announcement of 20 January 2016 for further details).  Karamah-1 is the second of a multi-well programme which could extend to a third well, subject to the drilling results.   Drilling operations are expected to take between 20 and 30 days.  Masirah originally selected Plexus' equipment due to the safety and time savings of POS-GRIP compared to the traditional slip and seal systems, and also the enhanced safety advantages of Plexus' mudline systems and surface hangers with installation through the blow out preventer.

Plexus' CEO Ben Van Bilderbeek said, "This is the second order we have secured with Masirah for our cost effective and technically superior wellhead solutions. Aside from the positive impact on our revenues, it further increases our visibility in this important oil and gas region.  The Middle East is one of the few regions in the world where drilling activity has remained relatively stable during the current downturn.  As a result, it is a key area of focus for us, as we look to expand the geographic footprint of our best in class equipment.  The superior qualities of our wellheads in terms of performance, reliability and safety have no geographic boundaries, and as a result we are confident we can replicate, on a global basis, the historic success we have had in the North Sea where Plexus is firmly established as the dominant supplier of jack-up exploration wellheads."    

**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]
Nick Tulloch	Cenkos Securities PLC	Tel: [phone]
Derrick Lee	Cenkos Securities PLC	Tel: [phone]
Frank Buhagiar	St Brides Partners Ltd	Tel: [phone]
Isabel de Salis	St Brides Partners Ltd	Tel: [phone]

NOTES:

Plexus Holdings PLC

Plexus Holdings PLC is an AIM traded oil and gas engineering and services business, which supplies wellhead and mudline suspension equipment together with associated equipment and services for exploration and production applications.  Based in Aberdeen, with a presence in London, Cairo, Kuala Lumpur, Singapore and Texas, it has developed and patented a friction-grip 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.

To date, POS-GRIP wellhead systems have been used in over 400 oil and gas wells by numerous international companies.  In particular, the technology has advantages in High Pressure/High Temperature (HPHT) and Extreme HPHT (X-HPHT) oil and gas environments, for which there is growing global demand and where Plexus is being increasingly recognised as the supplier of choice.  Plexus has recently successfully completed the supply of an X-HPHT exploration wellhead to Total for the Solaris well which is believed to be the deepest and highest pressure well ever drilled in the North Sea.

Plexus is also extending its technology into an increasing number of other applications:

·    In September 2015 it launched a prototype of the 'Python™ Subsea Wellhead' developed as part of a Joint Industry Project in collaboration with BG, Royal Dutch Shell, Wintershall, Maersk, TOTAL, Tullow Oil, ENI, LR Senergy, Transocean and Oil States Industries Inc. 

·    It recently also completed a JIP in conjunction with Maersk to develop a downhole HPHT Tieback connector which for the first time allows the reconnection of production casing to HPHT exploration and production wells.

·    It developed and qualified a new product called POS-SET Connector™ which is designed to re-establish a connection onto rough conductor casing previously cut above the seabed to facilitate tieback or abandonment operations.

Having proven its POS-GRIP technology in the niche jack-up exploration market Plexus is now focused on extending its applications into the much larger multi-billion dollar land and platform production well market as well as actively pursuing a first time use of the new Python subsea wellhead into the important subsea sector. Such strategic initiatives will be pursued both organically and with trading partners and licencees.

 

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