Plexus Regulatory News (POS)

28 Jan 2010 07:00



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

28 January 2010

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

West Africa Contract Win - Bowleven plc

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® method of wellhead engineering, has signed an agreement with a subsidiary of Bowleven plc ('Bowleven'), an African-focused oil and gas exploration company quoted on AIM (AIM: BLVN), to supply its POS-GRIP® wellhead systems and services for drilling offshore Cameroon. The new contract win will see Plexus expand its geographic reach to West Africa, a region with a large number of active oil and gas majors, which the Company hopes to build a position in going forward. The potential value of the contract, which is subject to completion of relevant terms, is estimated at £300,000 with revenues expected to commence in May 2010.

Bowleven will utilise Plexus' POS-GRIP wellhead equipment, which is known for its increased safety, time, and cost saving capabilities for two standard 10,000 psi exploration/appraisal wells, with the option to add further wells to the contract if required. Additionally the agreement marks a new working relationship between the two companies; one which the Directors are hopeful will be strengthened in the future.

Plexus CEO Ben van Bilderbeek said: "This is an exciting time for Plexus as we continue to expand our geographic footprint and marketing initiatives. West Africa is a key oil and gas market, and one which we are keen to build our position in. With this in mind, we look forward to working with Bowleven, a highly regarded oil and gas growth company in the region, with the aim of increasing our exposure in the region and becoming Bowleven's wellhead supplier of choice."

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

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 140 oil and gas wells by international companies including BHP Billiton, BG International, BP, Brunei Shell Petroleum, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, 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.