LONDON (Alliance News) - Plexus Holdings PLC Tuesday said Maersk Oil, the Danish oil and gas subsidiary of AP Moller-Maersk Group, has converted an option to receive wellhead services from Plexus at an estimated value of roughly GBP1.4 million.
The AIM-quoted oil and gas engineering services business said the deal is related to a GBP1.1 million contract announced between the two parties in February in which an option was granted for Maersk Oil to be supplied Plexus' POS-GRIP surface wellhead and mudline systems for use on a standard pressure well for exploration activities in the central Danish North Sea.
The POS-GRIP method of engineering deforms one tubular section against another. 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 company has achieved a number of new contracts so far in 2014 and said that it expects revenues from the new Maersk contract to start in October.
Plexus Holdings shares were down 0.7% to 312.73 pence on Tuesday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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Plexus (POS)