Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services
6 January 2015
Plexus Holdings PLC ('Plexus' or 'the Company')
Additional £1.5m Three Well Order from Brunei Shell Petroleum Sdn Bhd for Plexus' POS-GRIP Wellhead Systems
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, is pleased to announce it has received purchase orders ('POs') from Brunei Shell Petroleum Sdn Bhd ('BSP') to supply both High Pressure/High Temperature ('HP/HT') and standard pressured wellhead systems and services for three additional exploration wells under an existing four year contract ('the Supply Agreement'), which runs to 2016. The total value of the POs is estimated at £1.5 million with revenues expected to commence in April 2015.
Under the terms of the Supply Agreement, which was announced on 1 October 2012, Plexus has agreed to supply both HP/HT and standard pressured wellhead and mudline systems and services, using the Company's proprietary POS-GRIP technology, for a multi-well exploration programme in Brunei. The Company has a long standing relationship with BSP having first supplied it with Plexus' wellhead equipment in 2006.
Plexus CEO Ben van Bilderbeek said, "These latest orders with BSP demonstrate the benefits of securing long term supply agreements with valued customers. We have now been supplying BSP with our best in class wellhead equipment since 2006. We view our long relationship with BSP as an endorsement of our proprietary POS-GRIP technology and the benefits it offers operators in terms of superior performance, reliability and health and safety. As well as being best in class, our wellhead equipment offers significant cost savings, which is highly relevant given today's volatile oil price environment. Additionally, having an established position in the Asian region with hubs in Malaysia, Singapore and Brunei, we believe we are ideally placed to service our customers' needs in what is a key growth market for us; and one in which we are looking to replicate the success we continue to enjoy in the North Sea HP/HT market, where Plexus is the dominant equipment supplier."
**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 |
Derrick Lee |
Cenkos Securities PLC |
Tel: 0131 220 9100 |
Nick Tulloch |
Cenkos Securities PLC |
Tel: 0131 220 9772 |
Felicity Winkles |
St Brides Media and Finance Ltd |
Tel: 020 7236 1177 |
Frank Buhagiar |
St Brides Media and 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, 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®, 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 a Joint Industry Project ('JIP') 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. BG, Royal Dutch Shell, Wintershall, Maersk, TOTAL, Tullow Oil, ENI, Oil States Industries Inc., and the UK entity of the world's largest offshore drilling company have joined the initiative to date as Consulting Partners. The JIP is nearing completion and the resultant 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, and importantly rigid metal annular seal technology qualified to match the performance of premium connectors. The JIP will also be designing solutions for annulus pressure monitoring and access for 'bleed off' capability to address sustained casing pressure ('SCP') issues which for many years have been recognised by the industry as a serious industry problem. The design process has now been completed, with testing is due for completion end 2014, and the running of a prototype in the field targeted for the second half of 2015.
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 China, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.
