GBP 1.3M BG Group Contract

RNS Number : 7144C

Plexus Holdings Plc

04 May 2012

 



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

4 May 2012

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

New 20,000 psi X-HP/HT Order from BG Group for £1.3 million

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, announces a new order worth £1.3 million from BG International Ltd ('BG International'), a wholly owned subsidiary of BG Group plc, to supply its 20,000 psi extreme high pressure and high temperature ('X-HP/HT') POS-GRIP wellhead technology for gas exploration drilling operations in the North Sea.  Revenues from the contract are expected to commence in November 2012. 

This order follows on from a five year framework agreement signed between the two companies in 2006 which saw Plexus develop and supply BG International with 20,000 psi X-HP/HT POS-GRIP wellhead technology. The original agreement was for several exploration wells in the North Sea which are now completed/nearing completion, including the Jackdaw well.

Plexus CEO Ben van Bilderbeek said, "This follow on order for X-HP/HT 20,000 psi wellhead equipment with BG International further cements our position as the leading specialised wellhead services company within the HP/HT arena in the North Sea. As drilling moves to more challenging terrains and pressures, HP/HT wellhead equipment which adheres to the highest safety standards is becoming more and more recognised as a necessity by the oil and gas industry.  With our patented POS-GRIP friction-grip which can be installed and serviced without removal of the blow-out preventer and which delivers automatic instant casing lockdown, we believe our technology is the 'BAST' - best and safest available technology in the HP/HT market today, and we expect to see our dominance in this arena continue to grow both in the North Sea and on an international level."

**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]
Frank Buhagiar	St Brides Media & Finance Ltd	Tel: [phone]

Notes to Editors:

Plexus Holdings PLC, which began trading on AIM in December 2005, is an oil and gas engineering and services business, which supplies wellhead and mudline suspension equipment for exploration and production applications.  Based in Aberdeen, with offices in London, Cairo, Kuala Lumpur and a presence in Houston, 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.

The Company plans to accelerate the roll out of POS-GRIP wellhead equipment as a superior alternative to current technology and for it to become the future industry standard for wellhead design.  In particular, the technology has advantages in High Pressure/High Temperature (HP/HT) and Extreme HP/HT (X-HP/HT) oil and gas environments, for which there is growing global demand and where Plexus is being increasingly recognised as the supplier of choice.  Importantly, the Company is focussed on extending its proprietary technology into an increasing number of subsea applications.  In line with this, in March 2011 the Company launched an initiative to develop a new subsea wellhead design, HGSS™, utilising its friction-grip technology in collaboration with key oil and gas operators and service companies. Royal Dutch Shell, Wintershall, Maersk, Tullow Oil and the UK entity of the world's largest offshore drilling company have joined the initiative to date. The HGSS subsea wellhead design will include a combination of key features never before seen in a subsea wellhead which include being rated to 15,000 psi, 4,000,000 pounds of 'instant' casing lockdown capacity, annulus pressure monitoring and access for 'bleed off' capability to address sustained casing pressure ('SCP') issues which are recognised by the API as a serious industry problem, and rigid metal annular seal technology qualified to match the performance of premium casing.  Development is expected to be completed by mid 2013 calendar year.

To date, POS-GRIP wellhead systems have 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, Dana Petroleum, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Niko Resources, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy Limited, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.

 

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