Plexus confirms Centrica contract extention

PUBLISHED: 20 Nov 2013 @ 21:36 | Comments (0) |

Plexus Holdings (LSE:POS), the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, have confirmed it has extended a contract with Centrica North Sea Gas Ltd (‘Centrica’) for the supply and sale of an additional POS-GRIP wellhead system (5,000 psi) and services for the GROVE 49/10a-4 (G1) production well in the southern North Sea. The contract is worth up to £850,000 with revenues expected to commence in the first quarter of Plexus’ 2014 financial year.

This contract win is a significant milestone for Plexus as it continues to expand its wellhead offering from exploration drilling into the larger and more lucrative production market, where the Company sees considerable future growth potential. In addition it also highlights Plexus’ strong working relationship with Centrica, with which Plexus has worked with over the past seven years in the North Sea region.

Plexus’ CEO Ben Van Bilderbeek said, “We are delighted to have secured this production wellhead supply contract which not only underpins the strength of our POS-GRIP technology for its safety, reliability and performance but also our strategic expansion from exploration wellhead supply diversifying into larger markets.

“In line with this expansion strategy, we are also actively pursuing the subsea wellhead market where we believe significant commercial opportunities for Plexus exist. We are developing a new and safer subsea wellhead “HGSS”, working alongside six major oil and gas companies and believe we are on track to deliver a transformational best in class subsea wellhead system for the future.

“As such this is a truly exciting time for Plexus as we continue to win contracts for the supply of our niche POS-GRIP wellhead jack-up rig rental systems, and continue to position ourselves as a significant wellhead supplier of choice across exploration, production and indeed subsea.”

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