Plexus Regulatory News (POS)

28 Mar 2008 15:15

Plexus Holdings Plc28 March 2008 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services 28 March 2008 Plexus Holdings PLC ('Plexus' or 'the Company') £800,000 Contract with CNR International (U.K) Limited Plexus Holdings PLC, the AIM quoted oil and gas engineering services business,has reached an agreement with an international oil and gas exploration,development and production company, CNR International (U.K) Limited ("CNR") tosupply, subject to completion of relevant contract terms, the Company'sproprietary POS-GRIP(R) High Pressure/High Temperature ("HP/HT") explorationrental wellhead system for exploration activities in the North Sea. The valueof the contract is estimated at £800,000 pounds sterling, with revenuescommencing in the last quarter of 2008. This agreement marks a new working relationship between the two companies, whichPlexus hopes to build further upon in the future. Plexus CEO Ben van Bilderbeek said, "Our continued success in attracting newcustomers for our proprietary exploration rental wellhead business, has nowadded CNR as a new customer. We are gaining market share because POS-GRIPtechnology has been tested to higher standards, is safer to use, and reduces rigtime. "I believe that our current share price does not accurately reflect the returnswe are making from our growing rental business, and it would seem that ourearnings multiples ignore the underlying potential for our proprietarytechnology. Plexus is valued as if it were an established technology firm, whichhas already matured, although, by our own estimates, we only hold a 7.5% shareof a niche application, which itself represents in turn about 5% of the overallmarket for POS-GRIP technology. "The growing Jack-up fleet, which independent surveyors predict will add, overthe next four years, as many as 52 rigs, equipped with BOP's designed to takeadvantage of our HP/HT technology, offers substantial scope for expansion. "We however will have to find a better way to articulate that Plexus remainsprimarily an emerging technology company, which invests a significant percentageof its revenue to fund additional facilities and personnel in support of newproduct development and R&D. Our remaining target markets representapproximately 95% of the opportunity for our unique technology, and as we enjoya healthy business model we are well placed to pursue growth, whilst moreoperators will have the opportunity to use our systems." 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 andgas engineering, and services business based in Aberdeen, with an office inLondon and a presence in Houston, Texas. It has developed and patented a methodof engineering for oil and gas field wellheads and connectors, POS-GRIP, whichinvolves deforming one tubular member against another to effect gripping andsealing. POS-GRIP wellhead systems have to date been used in over 120 oil and gas wellsby international companies including BG International, BHP Billiton, BP, BruneiShell Petroleum, ConocoPhillips, Gaz de France, Global Santa Fe, Maersk,Petro-Canada Trinidad & Tobago, Repsol, Talisman Energy, Tullow Oil, andWintershall. The Company plans to accelerate the roll out of POS-GRIP technology as asuperior alternative to current wellhead technology. It has particularadvantages in HP/HT oil and gas environments for which there is increasingdemand throughout the world. The Company's long-term goal is to develop POS-GRIPtechnology as the future industry standard for wellhead design. This objectiveincludes the distribution of POS-GRIP technology through licensees to maximisemarket penetration. This information is provided by RNS The company news service from the London Stock Exchange