Plexus10 Aug 2011 09:16
[POS] This share is worth researching. After recovering from a low of .25 to current .5 and a medium term high of .75p I have looked at recent contract wins and [POS] appears to be getting into bed with the high and mighty in its field.
This 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 that it has signed a contract with Gaz de France Suez E& P Ltd ('GDF'), a leading oil and gas company, to supply its POS-GRIP High Pressure High Temperature ('HP/HT') wellhead system for exploration activities in the UK North Sea. The value of the contract is worth approximately £1.7 million with revenues expected to start within the next three months. Under the terms of the agreement, Plexus is supplying GDF with its HP/HT 15,000 psi wellhead system with mudline suspension system for exploration activities in the UK North Sea for two wells, Faraday and Jacqui. Since 2007, the Company has secured a number of contracts from GDF, initially in the North Sea and later in the Egyptian region of the Mediterranean Sea. Plexus CEO Ben van Bilderbeek said, "Although Plexus is expanding its technology into the subsea arena, our main cash flow driver continues to be the rental of HP/HT wellheads in the most challenging applications in the Jack-up drilling market. This new project for GDF in the North Sea is evidence of the trend by operating companies to tighten safety standards and manage costs. Compared to conventional designs, POS-GRIP friction grip wellhead equipment is cost-effective, reliable, and provides potential time savings, that can render the service cost neutral, when projects are executed according to plan. These benefits become even more attractive in an environment where safety considerations remain paramount, and where a new tax regime was recently announced in the UK. Plexus continues to maintain a steady flow of new contracts, and we anticipate this trend to continue."
has entered into an agreement with global diversified energy services company, Senergy, to provide Dana Petroleum PLC ('Dana') with proprietary POS-GRIP equipment for oil and gas exploration activities in the UK North Sea. The initial contract will be for one well with a value of approximately £250,000 commencing in December 2011, however this may be expanded.
Under the terms of the contract, Plexus will supply Dana with its POS-GRIP 10,000 psi wellhead equipment together with its M2S mudline suspension system for use on the Possum well in the UK North Sea. It is believed that the contract was won due to the ease with which Plexus' M2S system, which utilises the POS-GRIP end fittings at the ocean floor, can convert from a mudline suspension system to subsea production from a jack-up rig if the exploration well is successful. This means that a surface wellhead, surface blow out preventer ('BOP') and casing riser are used, eliminating the requirement for a high pressure drilling riser or a subsea BOP, delivering significant time and cost savings.