North Sea wellhead production order

RNS Number : 5442W

Plexus Holdings Plc

23 December 2021

 

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

This announcement contains inside information

23^rd December 2021

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

"POS-GRIP" production wellhead contract award

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, known for its safety, time and cost saving capabilities,is pleased to announce that it has been awarded a purchase order for a POS-GRIP surface production wellhead system for a leading North Sea operator. 

The order includes Plexus' POS-GRIP 10,000 psi leak proof "HG®" metal to metal sealing surface production wellhead, together with associated spares and valve equipment for a new gas well in the North Sea. Under the terms of the contract, Plexus will receive milestone payments following the date of the signing of the purchase order through to completion. The wellhead equipment is scheduled for delivery in second quarter 2022. The contract is expected to have a duration of approximately 120 days, with most of the revenue to be booked during the Company's current 2021/22 financial year.

This purchase order is in line with the Company's IP led strategy to continue to gain market share within the production wellhead marketplace in conjunction with the recent cooperation agreement with Cameron, (a Schlumberger Group company) for the supply of Jack-up exploration wellhead and mudline equipment, together with the intention to move into other areas of the energy sector, including potentially, geothermal, carbon capture and hydrogen storage.

Plexus' CEO Ben Van Bilderbeek said, "Following our recent cooperation agreement with Cameron in relation to the supply of Jack-up exploration wellheads, this latest order shows we in addition continue to progress our strategy of direct sales in the surface production wellhead marketplace with our "HG" metal sealing technology. Securing an order for POS-GRIP wellheads in the current challenging climate is positive, particularly when one considers the long lead times associated with the award of such contracts, the ongoing COVID-19 pandemic and the continued volatility in global oil and gas markets. For many years POS-GRIP wellheads have not only delivered a superior sealing solution but also one that is cost-effective, and maintenance free. Our equipment has proven to be superior in terms of Totex performance, reliability, and safety over many years in the field.  Furthermore, our technology has generated considerable operational cost savings via reduced installation times and reduced NPT (non-productive time), by not having to shut down production to carry out maintenance.

"With a growing pipeline of opportunities, we are hopeful that this latest order will prove to be a bellwether, as we start to emerge from the global COVID-19 pandemic induced malaise that has impacted our industry. Importantly, this production well order is for gas, and as the cleanest hydrocarbon to combust in terms of CO₂ emissions, natural gas is increasingly viewed as a key transitional fuel, as the world moves towards net zero emissions, and operators strive to deliver on ESG commitments. Plexus believes that it has an important role to play in this transition process as pressure grows to eradicate harmful fugitive methane emissions from the entirety of the natural gas consumption chain, whenever and wherever possible. At the well-site, POS-GRIP's leak-proof wellheads can achieve such goals in a way that conventional wellheads cannot, and as a result, we believe our production wellhead technology delivers a compelling economic and environmental proposition for the surface production operations we are actively targeting."   

**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 Pete Lynch	Cenkos Securities PLC Cenkos Securities PLC	Tel: [phone] Tel: [phone]
Isabel de Salis	St Brides Partners Ltd	Tel: [phone]
Max Bennett	St Brides Partners Ltd	Tel: [phone]

Notes

Plexus Holdings plc (AIM: POS) is an IP led company focussed on establishing its patented leak-proof POS-GRIP® wellhead and associated equipment as the go-to technology for energy markets whilst making a genuine contribution to the oil and gas industry's ESG and NetZero goals by championing "through the BOP" (Blow-out Preventer) designs, and lifetime leak-proof HG® metal-to-metal sealing systems.   Having protected the environment for many years through these technological innovations, the Company was awarded the London Stock Exchange's Green Economy Mark in July 2021 and continues to place emphasis on its ability to reduce harmful methane emissions and unnecessary maintenance and intervention costs.  

Headquartered in Aberdeen, the Company has provided leak-free wellhead performance in over 400 wells worldwide and worked with an array of blue-chip oil and gas company clients.  As well as generating direct revenues from securing orders for surface production wellheads particularly in the UK and European North Sea regions, the Company has several licencing/collaboration agreements with major partners including FMC Technologies, which is a subsidiary of TechnipFMC, and LLC Gusar in Russia. Furthermore, it works closely with Cameron, a Schlumberger Group company Cameron has a non-exclusive licence to use the POS-GRIP and HG® metal-to-metal seal method of wellhead engineering for the development of conventional and unconventional oil and gas surface wellheads, and Plexus entered into a Cooperation Agreement,

which enabled Plexus to return to the Jack-up Exploration (Adjustable) Wellhead rental business for

'through the BOP' jack-up applications, where Cameron will help to provide Plexus with sales leads and market insight through a formal Sales Advisory Board.  

Plexus' current suite of products and applications include: "HG" wellheads, which combine POS-GRIP technology with gas tight leak free metal-to-metal sealing; the Python® subsea wellhead, developed in a Joint Industry Project with several industry leaders; the POS-SET™ Connector for the de-commissioning and abandonment market; and Tersus-PCT, an innovative HP/HT tie back connector product. Having proved the superior uniquely enabling qualities of POS-GRIP Technology, Plexus is now also focused on establishing its technology and equipment in other markets such as Plug and Abandonment de-commissioning, carbon capture, gas storage, hydrogen and geothermal where it can play an important role in reducing harmful methane emission risks as operators strive to deliver on ESG commitments and NetZero goals in a safe and cost effective way.

 

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