TIDMPOS
RNS Number : 5425Q
Plexus Holdings Plc
01 March 2016
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
1 March 2016
Plexus Holdings PLC ('Plexus' or 'the Company')
Additional Well Order Signed with Det norske - Norway
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, is pleased to
announce that it has received an additional purchase order ('PO')
from Det norske oljeselskap ASA ('Det norske') to supply surface
wellhead and mudline equipment services for an exploration well on
the Norwegian Continental Shelf, offshore Norway. The value of this
latest order with Det norske is estimated at approximately GBP0.6
million with revenues expected to commence in July 2016.
Under the terms of the PO, Plexus will supply its standard
pressure 18-3/4" 15M surface wellhead and mudline system. The well
will be drilled using the Maersk Interceptor Jackup (XLE) class
rig, which is expected to take between 40 and 60 days. This will be
the eighth Det norske well to use Plexus' POS-GRIP wellhead
equipment since 2012, highlighting how the Company continues to win
repeat business from its blue chip customer base.
Plexus' CEO Ben Van Bilderbeek said, "What makes this latest
order with Det norske particularly encouraging is that it has been
awarded at a time when drilling activity in the North Sea and other
hydrocarbon regions has dropped off sharply on the back of the
volatile oil price environment. Together with the contracts we were
awarded in Oman and Malaysia earlier in the year, we have now won
three contracts in the first two months of 2016. In our view, this
demonstrates the established support for our best in class wellhead
equipment among blue chip operators, particularly in regions where
exploration drilling activity is taking place and where we have
long-standing relationships, and also that we will continue to
secure market share when exploration drilling activity picks up as
it inevitably will.
"Having been used in over 400 wells around the world, the
superior performance, reliability, and safety of our POS-GRIP
technology compared to other competing products is proven. With
licensing agreements recently secured for the major Chinese and
Russian markets and a hub serving the wider Asian markets in place,
we are well placed to replicate internationally the historical
success we have had in the North Sea, which has seen Plexus become
the dominant supplier of jack-up exploration wellhead equipment. In
particular offshore Norway has been and continues to be an
important region for us, and I believe that the Norwegian tax
allowances associated with exploration drilling play an important
part in this. I am hopeful that the UK government will announce in
the upcoming Budget some additional tax incentives for the UK
Continental Shelf. Notwithstanding the current challenging trading
conditions, we therefore remain confident that where there is
business to be won, Plexus is very well placed to secure it."
**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
Nick Tulloch Cenkos Securities PLC Tel: 0131 220 9772
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
Plexus Holdings PLC
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 together with
associated equipment and services for exploration and production
applications. Based in Aberdeen, with offices in London, Cairo,
Kuala Lumpur, Singapore 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.
To date, POS-GRIP wellhead systems have been used or selected to
be used in over 350 oil and gas wells by international companies
including ADTI, AGR, Apache Energy Australia, BHP Billiton, BG
International, BP, Brunei Shell Petroleum, Cairn Energy, Centrica,
ConocoPhillips, Dana Petroleum, Dubai Petroleum, ENI, GDF SUEZ,
Global Santa Fe, Maersk, Niko Resources, Petro-Canada Trinidad
& Tobago, Premier Oil Norge, Red Sea Petroleum Operating
Company, Repsol, RWE, Senergy Limited, Shell China, Shell Egypt,
Statoil, Silverstone Energy, Talisman Energy, Total, Tullow Oil,
and Wintershall.
Importantly, the Company is focussed on extending its
proprietary POS-GRIP technology into an increasing number of subsea
applications. In line with this, in March 2011 the Company launched
a Joint Industry Project ('JIP') initiative to develop a new subsea
wellhead design, the 'Python Subsea Wellhead' utilising its
friction-grip technology in collaboration with key oil and gas
operators and service companies. BG, Royal Dutch Shell,
Wintershall, Maersk, TOTAL, Tullow Oil, ENI, Senergy, ADTI and Oil
States Industries Inc. The JIP is nearing completion with final
qualification testing of all key features of the product under way,
and the resultant Python 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, and importantly rigid metal
annular seal technology qualified to match the performance of
premium connectors. The building of a single string Python Subsea
Wellhead system prototype commenced in February, and was launched
at the SPE Offshore Europe Exhibition and Conference in Aberdeen
('OE2015') in September 2015.
Plexus is an innovative technology company always looking for
opportunities to apply its proprietary POS-GRIP friction grip
method of engineering to new products both within and outside the
oil and gas industry. For example Plexus have recently completed a
JIP in conjunction with Maersk to develop a downhole HPHT Tieback
connector which for the first time allows the reconnection of
production casing to HPHT exploration and production wells. In
addition the Company has developed and qualified a new product
called POS-SET Connector(TM) which is designed to re-establish a
connection onto rough conductor casing previously cut above the
seabed to facilitate tieback or abandonment operations. The market
for permanent plugging and abandonment of wells is increasing in
the North Sea and beyond, and could be an important new revenue
stream for the Company.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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