Contract from Maersk for long term wellhead rental

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services

 

 

 

 

5 June 2017

Plexus Holdings PLC ('Plexus' or 'the Company')

Contract from Maersk for long term wellhead rental

 

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 entered into a new 4 year contract with Maersk Oil North Sea UK Limited, for the provision of wellhead, mudline suspension systems and associated services.  The initial purchase order ('PO') is to prepare and provide POS-GRIP® HPHT Surface Wellhead systems and Tersus™ mudline suspension equipment on a stand-by basis ready to mobilise in the event of a relief wells needing to be drilled during the development of Maersk Culzean platforms. Revenues are expected to commence during the next Plexus financial year.  The contract further provides for the supply of additional exploration wellhead equipment for future appraisal wells in the Culzean area during the contract term, and provides for a 1 year extension.

 

Plexus' CEO Ben Van Bilderbeek said, "This is a fantastic contract for Plexus which will help to underpin our future revenues, as well as delivering the opportunity for further exploration well business with Maersk. It is also fitting that Plexus has been awarded this contract for the high profile Culzean Development, as we were involved in the initial exploration wells with Maersk in the Culzean field."

 

**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 is an AIM traded 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 a presence in London, Cairo, Kuala Lumpur, Singapore and 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.

To date, POS-GRIP® wellhead systems have been used in over 400 oil and gas wells by numerous international companies.  In particular, the technology has advantages in High Pressure/High Temperature (HPHT) and Extreme HPHT (X-HPHT) oil and gas environments, for which there is growing global demand and where Plexus is being increasingly recognised as the supplier of choice.  Plexus has recently successfully completed the supply of an X-HPHT exploration wellhead to Total for the Solaris well which is believed to be the deepest and highest pressure well ever drilled in the North Sea.

Plexus is also extending its technology into an increasing number of other applications:

·     In September 2015 it launched a prototype of the 'Python™ Subsea Wellhead' developed as part of a Joint Industry Project in collaboration with BG, Royal Dutch Shell, Wintershall, Maersk, TOTAL, Tullow Oil, ENI, LR Senergy, Transocean and Oil States Industries Inc. 

·     It recently also 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

·     It developed and qualified a new product called POS-SET Connector™ which is designed to re-establish a connection onto rough conductor casing previously cut above the seabed to facilitate tieback or abandonment operations

Having proven its POS-GRIP technology in the niche jack-up exploration market Plexus is now focused on extending its applications into the much larger multi-billion dollar land and platform production well market as well as actively pursuing a first time use of the new Python subsea wellhead into the important subsea sector. Such strategic initiatives will be pursued both organically and with trading partners and licencees.