GBP0.9 Million Well Order

RNS Number : 2366Y

Plexus Holdings Plc

28 November 2014

 



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

28 November 2014

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

Additional Well Order Signed With Det Norske - Norway

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 is pleased to announce that it has received a purchase order ('PO') from Det Norske Oljeselskap ASA ('Det Norske') to supply surface wellhead and mudline equipment services for Geopilot#2, an oil and gas appraisal well on the Ivar Aasen development project, offshore Norway.  Geopilot#2 will be the seventh Det Norske well to use Plexus' POS-GRIP wellhead equipment since 2012, highlighting how the Company continues to win repeat business from its blue chip customer base.  The value of the latest order is estimated at approximately £0.9 million with revenues expected to commence in February 2015. 

Under the terms of the PO contract, Plexus will supply its 18-3/4" 15,000psi High pressure/ High Temperature ('HP/HT') adjustable surface wellhead and mudline system. The drilling of Geopilot#2 will directly follow the Geopilot#1 well which will also be using Plexus' POS-GRIP® based equipment.  Both wells will be drilled using the recently built Maersk Interceptor rig.  Plexus' equipment has been selected for use on the two wells as a result of its superior safety and performance capabilities, in addition to the time/cost savings it delivers.  

Plexus CEO Ben Van Bilderbeek said, "Geopilot#2 is the third order we have received for our best in class wellhead equipment for wells offshore Norway during the 2014 calendar year, evidence of the key role Plexus is playing in an area experiencing heightened levels of activity.  At the wider regional level including the UK, Danish and Dutch zones of the North Sea, today's order is the tenth we have been awarded in 2014 and further cements our position as the go-to provider of HP/HT wellhead equipment, known for its increased safety, time and cost saving capabilities.  We are also looking to replicate our success in the North Sea in other geographies, in line with our strategy to build a leading global wellhead engineering company. This is evidenced by our move into Asia where we are establishing a fully operational business hub to supply our POS-GRIP wellhead equipment and services to the region's fast-growing oil and gas exploration and production markets.  I look forward to providing further updates on our progress in due course."

**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]
Derrick Lee	Cenkos Securities PLC	Tel: [phone]
Nick Tulloch	Cenkos Securities PLC	Tel: [phone]
Felicity Winkles	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, Singapore 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 a Joint Industry Project ('JIP')  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. BG, Royal Dutch Shell, Wintershall, Maersk, TOTAL, Tullow Oil, ENI, Oil States Industries Inc., and the UK entity of the world's largest offshore drilling company have joined the initiative to date as Consulting Partners. The JIP is nearing completion and the resultant 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, and importantly rigid metal annular seal technology qualified to match the performance of premium connectors.  The JIP will also be designing solutions for annulus pressure monitoring and access for 'bleed off' capability to address sustained casing pressure ('SCP') issues which for many years have been recognised by the industry as a serious industry problem. The design process has now been completed, with testing is due for completion end 2014, and the running of a prototype in the field targeted for the second half of 2015.

To date, POS-GRIP wellhead systems have been used or selected to be used in over 300 oil and gas wells by international companies including AGR, 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 China, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.

 

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