GBP2million New Contract Win with Lundin

RNS Number : 1411P

Plexus Holdings Plc

22 October 2012

 



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

22 October 2012

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

£2 million New Contract Win with Lundin Norway AS for Supply of POS-GRIP Wellhead Equipment

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 that it has secured a £2 million contract to supply for the first time its high pressure high temperature ('HPHT') POS-GRIP friction grip technology wellhead equipment to Lundin Norway AS ('Lundin'), a Norwegian oil and gas operator, for exploration drilling in Norway. 

The order is for a two well programme due to commence immediately after the completion of the Skagen well operated by Lotos Exploration and Production Norge AS, which is also being supplied with Plexus' POS-GRIP wellhead equipment, as announced by the Company on 11th October 2012.  It is anticipated that the first well of the Lundin contract, 8/5-1 Ogna, will commence drilling in January 2013.  The second, 7/4-3 Carlsberg, will be drilled immediately after Ogna. Revenues are expected to commence in January 2013. 

The exploration drilling programme will utilise Plexus' POS-GRIP HP/HT 18-3/4" 15,000 psi HPHT wellhead equipment for exploration purposes at a variety of pressures.  This contract further strengthens the Company's growing presence in Norway and the wider North Sea and follows several other recent new orders for Plexus from Norwegian oil and gas companies. 

Plexus CEO Ben Van Bilderbeek said, "We are delighted to further expand our customer base for our innovative 15,000psi HPHT wellhead equipment. Since 28 September 2012, we have now announced new contracts totalling £6.15m to supply our proprietary wellhead equipment to leading oil and gas companies.  As a result, we are well placed to build on the record trading performance seen during our last full year.  The strong trading is evidence that Plexus' reputation within the oil and gas industry as a supplier of best in class equipment, in terms of operational performance and safety, is gaining traction.  Not only does this bode well for further contract wins from both new and existing customers to supply our wellhead equipment, but also for our other ongoing projects, including our Subsea wellhead design JIP, that are based on our proven POS-GRIP friction grip technology.  As a result, I look forward to providing the market with further updates 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]
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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