Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services
28 November 2013
Plexus Holdings PLC ('Plexus' or 'the Company')
Additional 2 Wells with Glencore for Supply of POS-GRIP® HP/HT Wellhead Equipment with Combined Value of £1.6m
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, announces that it has agreed to supply its high pressure/high temperature ('HP/HT') POS-GRIP wellhead equipment to Glencore Exploration Cameroon Ltd ('Glencore'), the leading integrated commodities producer and marketer, for drilling one exploration well known as Parrot, offshore Cameroon. In addition, a second call-off to supply wellhead equipment for an additional well, Malimbe, is currently being reviewed. The two call-offs will have a combined value of circa £1.6m.
These two new wells form part of Plexus' first contract entered into with Glencore, as announced on 15 January 2013, which was initially for one well with an option to increase this to three. The duration of the contract is two years and may be extended by both parties. Revenues have commenced and will continue into the 2014/15 financial year. As with the first well, the Parrot and Malimbe wells will utilise Plexus' POS-GRIP HP/HT 18-3/4" 15,000 psi wellhead equipment.
Plexus CEO Ben Van Bilderbeek said, "These additional contracts with Glencore are in line with Plexus' strategy to expand our core rental wellhead business globally into geographical areas such as Africa, Asia and Australia. This is our fourth contract in 2013 to supply leading operators, such as BG Group and ENI, with our proven POS-GRIP based wellheads outside our traditional area in the North Sea, where we have a dominant position in the HP/HT market. Having recently incorporated new subsidiaries in Asia to strengthen Plexus' presence in this region, we expect to secure more business outside Europe, as we look to build a leading global oil and gas wellhead company."
**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 |
Felicity Edwards |
St Brides Media & Finance Ltd |
Tel: 020 7236 1177 |
Frank Buhagiar |
St Brides Media & Finance Ltd |
Tel: 020 7236 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®, 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™, 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 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
