Last checked at 8 Jul 2008 07:00
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services
8 July 2008
Plexus Holdings PLC ('Plexus' or 'the Company')
£500,000 Contract Win with Lundin Petroleum AB
Plexus Holdings PLC, the AIM quoted oil and gas engineering services business, has further strengthened its market position in the North Sea region having signed an agreement with Swedish oil and gas company, Lundin Petroleum AB ('Lundin'), to supply its proprietary POS-GRIP® wellhead systems and mudline suspension. The potential value of the contract, which is subject to completion of relevant terms, is estimated at £500,000, with revenues commencing in the first quarter of 2009.
Plexus will provide Lundin with its standard proprietary 15,000 psi, High Pressure/High Temperature ('HP/HT') 18.75 inch single stack surface wellhead system for use with an 18-3/4" 15,000psi blow out preventer, for an exploration well being drilled in the Norwegian North Sea. This rental agreement marks the first working relationship between the two companies, which the Directors are hopeful can be strengthened in the future.
Plexus CEO Ben van Bilderbeek said, "We have built a strong presence in the North Sea, with an increasing number of leading international oil and gas companies now using our systems. Recent press speculation indicates that the rising oil price could spark a second North Sea exploration boom, with companies investing in technology to extract previously inaccessible reserves. As a main supplier of exploration wellhead technology in the North Sea, this bodes well for Plexus's future prospects in the region. With ever more extreme and technically challenging operational environments being ventured into, the need for innovative and technically superior equipment will continue to grow, presenting Plexus with a wealth of future growth opportunities."
* * ENDS * *
For further information please visit www.posgrip.com or contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7589 8555
Graham Stevens Plexus Holdings PLC Tel: 020 7589 8555
Elizabeth Kennedy Brewin Dolphin Tel: 0141 221 7733
Ken Fleming Brewin Dolphin Tel: 0141 221 7733
Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7236 1177
Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7236 1177
Notes
Plexus Holdings PLC
Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering, and services business based in Aberdeen, with an office in London 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 130 oil and gas wells by international companies including BHP Billiton, BG International, BP, Brunei Shell Petroleum, Centrica, ConocoPhillips, Gaz de France, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, RWE, Repsol, 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 and X-HP-HT 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.
Glossary
psi - pounds per square inches
HP/HT - High Pressure/ High Temperature