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LONDON (Alliance News) - Plexus Holdings PLC Tuesday said it has extended a contract with Centrica North Sea Gas Ltd for the supply and sale of an additional POS-GRIP wellhead system.
The AIM oil and gas wellhead engineering services business said the contract is worth up to GBP850,000, with revenues expected to commence in the first quarter of Plexus' 2014 financial year.
The company said the extension is a key achievement for the company as it allows the company to further develop into the more lucrative production wellhead sales markets as opposed to the exploration wellhead rental and sales market which makes up the majority of its revenues.
The POS-GRIP method of engineering deforms one tubular section against another in a wellhead. When one tube is run inside another in a well, a gradually tightening ring is clamped around the outside. The outer tube is forced onto the inner tube, and the resulting friction removes all movement from the system.
The technology, the first of its kind, lends itself to a number of applications including how a wellhead operates. The company has rented and sold the product to other major oil and gas producers including BG, BP, ConocoPhillips, Gazprom, Glencore, Maersk, Petronas and Royal Dutch Shell.
?We are beginning to progress and explore in terms of outside our core business,? the company's Finance Director Graham Stevens told Alliance News in October. ?Competing technologies do everything from the inside out, ours is quicker to manufacture, quicker to operate and it is safer than our competition.?
Plexus Holdings shares were up 2.8% to 269.23 pence Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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