GBP 3.3M contract with Centrica consortium

RNS Number : 7786D

Plexus Holdings Plc

29 March 2011

 



Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services

29 March 2011

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

Multi-well contract win with Centrica Energi Norway Consortium - circa £3.3 million with £2 million option

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, has agreed a contract with an estimated value of £3.3m with a consortium led by Centrica Energi Norway ('Centrica'), a leading oil and gas operator, for the supply of its proprietary POS-GRIP® wellheads and mudline suspension systems for exploration activities offshore Norway.  In addition to Centrica, the consortium includes Norwegian focused Det norske oljeselskap ASA ('Detnor') and AIM quoted Faroe Petroleum plc (AIM: FPM), both of which are new customers for the Company.  This contract, which is subject to completion of relevant terms, marks the Company's second agreement with Centrica.  Revenues are expected to commence in June 2011 and are estimated to extend over a12-18 month period. 

Under the terms of the agreement, Plexus will supply Centrica with both its POS-GRIP, HP/HT 18-3/4" 15,000 psi and standard POS-GRIP 10,000 psi wellheads for five exploration wells in the Norwegian North Sea with the option for Centrica to add a further three wells to the contact for approximately £2 million. 

Plexus CEO Ben van Bilderbeek said: "This contract is great news for Plexus as we remain committed to expanding the reach of our POS-GRIP® wellhead technology, known for its superior safety, time and cost saving capabilities, in the oil and gas industry.  Not only have we extended our prior UK North Sea relationship with Centrica into the Norwegian Continental Shelf, we have gained two new customers in Detnor and Faroe Petroleum, adding to our solid blue-chip customer list of oil and gas operators.  We believe each new contract win acts as further testament to the commercial strength of our technology and we are confident that 2011 will be a successful year for the Company as we work towards our strategic goal of developing POS-GRIP friction-grip technology as the future industry standard for wellhead design."

**ENDS**

For further information please visit www.posgrip.com or contact:

Ben van Bilderbeek	Plexus Holdings PLC	Tel: [phone]
Graham Stevens	Plexus Holdings PLC	Tel: [phone]
Jon Fitzpatrick	Cenkos Securities PLC	Tel: [phone]
Ken Fleming	Cenkos Securities PLC	Tel: [phone]
Felicity Edwards	St Brides Media & Finance Ltd	Tel: [phone]

Notes to Editors:

Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a 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.

POS-GRIP wellhead systems have to date been used or selected to be used in over 150 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, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy Limited, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.

The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology.  It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration.

 

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