£6m Wellhead Agreement with Oil and Gas Major (0921G)
26 June 2012 - 4:00PM
UK Regulatory
TIDMPOS
RNS Number : 0921G
Plexus Holdings Plc
26 June 2012
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
26 June 2012
Plexus Holdings PLC ('Plexus' or 'the Company')
Secures GBP6 million Wellhead Agreement for relief well standby
and exploration drilling from major international oil and gas
operator
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, has secured a three
year agreement with a leading global oil and gas producer for
relief well standby wellhead equipment. Plexus will provide High
Pressure/ High Temperature POS-GRIP adjustable wellhead equipment
and mudline casing support on a standby basis. This forms part of
contingency planning in the event that a relief well is needed
during the oil and gas development programme in the UK North Sea.
Additionally, Plexus will supply wellhead equipment for the
drilling of a high pressure/ high temperature ('HP/HT') well, also
in the North Sea and optional sidetracks. Plexus estimates that the
agreement, which is subject to finalisation of contract terms, is
likely to be worth in excess of GBP6m with revenues starting in
July 2012.
Due to increasing pressures for spill response and well control
contingencies, both from regulators and from within the oil and gas
industry, the operator has chosen to ensure that suitable HP/HT
wellhead equipment is available should there be a need to drill a
relief well in the event of an incident during the development of
the HP/HT oil and gas field. Plexus' 18-3/4" 15,000 psi wellhead
equipment with mudline suspension casing support will be reserved
on stand-by and maintained by Plexus in a ready to deploy state for
the contract period.
Plexus CEO Ben van Bilderbeek said, "We are delighted to have
been awarded this contract and believe it illustrates the
increasing pressure faced by oil and gas operators to follow best
practice in terms of response contingency planning capability. This
is the first contract of this kind for Plexus, where wellhead
equipment will be on permanent stand-by for a customer in the event
that a relief well is needed. As a leading supplier of superior
HP/HT wellhead equipment in the North Sea market, we believe that
with safety standards and regulations set to become more stringent
over the coming years, this could potentially be a significant new
business area for Plexus to further develop and pursue."
**ENDS**
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Jon Fitzpatrick Cenkos Securities PLC Tel: 020 7397 8900
Ken Fleming Cenkos Securities PLC Tel: 0131 220 6939
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(R), 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(TM),
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. Perhaps most importantly the
POS-GRIP subsea wellhead design will be designed so that casing and
tubing hangers match the standards required for casing and tubing
couplings in the system which is currently not the case for
conventional wellhead designs, both for subsea and platform/land.
This design initiative will for the first time provide the industry
with a truly 'premium' wellhead that would no longer be considered
the 'weak link' in the well. Development is expected to be
completed by September 2013 calendar year in time for the Aberdeen
Oil Show.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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