Plexus Holdings Plc 3Yr Contract with Leading Oil Services Company AGR (1559B)
28 February 2014 - 6:02PM
UK Regulatory
TIDMPOS
RNS Number : 1559B
Plexus Holdings Plc
28 February 2014
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
28 February 2014
Plexus Holdings PLC ('Plexus' or 'the Company')
New 3Yr Contract with Leading Oil Services Company AGR for
POS-GRIP Wellhead Technology with an Initial Order in West
Africa
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, known for its safety,
time and cost saving capabilities, announces it has agreed a new
three year contact ('the Contract') with leading drilling and
engineering company AGR Well Management Limited ('AGR'). Under the
Contract, Plexus will supply both its standard pressure and High
Temperature/ High Pressure ('HPHT') POS-GRIP(R) wellhead technology
and mudline services to AGR for oil and gas exploration activities
which it carries out on behalf of its customer base of blue chip
oil and gas companies.
Plexus is further pleased to announce that it has already
received a first order under the new Contract worth an estimated
GBP400,000 to supply its 10,000psi POS-GRIP equipment for an
exploration well in Guinea Bissau, West Africa which AGR will drill
on behalf of private Swedish operator Svenska Petroleum Exploration
AB ('Svenska'). This will be the first time that a POS-GRIP High
Temperature ('HT') annular seal, which is generally used in HPHT
systems, is utilised in a standard pressure system, and the
selection of Plexus' POS-GRIP technology demonstrates how operators
are increasingly electing to use best in class equipment in
standard operating environments. Revenues from this well order are
expected to commence calendar Q1 2014.
Plexus CEO Ben van Bilderbeek said, "We are delighted to be
working with AGR again. As AGR undertakes drilling activity for
blue chip oil and gas operators, a number of which have to date not
used Plexus' wellhead equipment, we view this Contract as an
excellent opportunity to introduce the significant performance,
safety and cost benefits of our best in class POS-GRIP wellhead
equipment to a wider customer base. The Svenska well order, the
first under the Contract with AGR provides a readymade example. Not
only is Svenska a new end user of Plexus' equipment, this well also
provides a foothold in a new country for us, Guinea Bissau, and in
the process further strengthens our position in West Africa, where
we have previously worked in Cameroon.
"We are therefore hopeful that the new Contract with AGR will
lead to other opportunities, namely the potential requirement for
additional equipment and the introduction to other operators in the
region. Our focus remains on building Plexus' reputation within the
oil and gas industry as a supplier of best in class equipment, in
terms of operational performance and safety. In this respect we
continue to gain traction both with new customers and in new
territories."
**ENDS**
For further information please visit www.plexusplc.com or
contact:
Ben van Bilderbeek Plexus Holdings Tel: 020 7795
PLC 6890
Graham Stevens Plexus Holdings Tel: 020 7795
PLC 6890
Derrick Lee Cenkos Securities Tel: 0131 220
PLC 9100
Alan Stewart Cenkos Securities Tel: 0131 220
PLC 9774
Felicity Edwards St Brides Media Tel: 020 7236
& Finance Ltd 1177
Frank Buhagiar St Brides Media Tel: 020 7236
& Finance Ltd 1177
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, ENI, Oil States Industries Inc.,
TOTAL 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. The design process has now been completed, and
prototype testing is due for completion mid 2014.
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 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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