Plexus Regulatory News (POS)

22 Aug 2006 07:00

Plexus Holdings Plc22 August 2006 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: 22 August 2006 Plexus Holdings PLC ('Plexus' or 'the Company') Agreement with Maersk Oil North Sea UK Limited Plexus Holdings PLC, the AIM listed oil and gas engineering services business,has agreed with Maersk Oil North Sea UK Limited ('Maersk'), subject tocompletion of relevant contract terms, to supply the Company's proprietaryPOS-GRIP(TM) high pressure/high temperature (HP/HT) wellhead equipment, for twoexploration wells in the North Sea. The six month HP/HT rental contract for15,000 psi specification, which includes service and support, is worthapproximately £800k and is scheduled to commence January 2007. It is anticipatedthat at least one additional well will follow. Maersk is a subsidiary of Maersk Olie og Gas AS ('Maersk Oil'), which is part ofthe Danish listed A.P.Moller-Maersk Group with more than 110,000 employees andoffices in 125 countries. Active since 1962, Maersk Oil has net productionexceeding 500,000 barrels of oil equivalents per day from fields in the Britishand Danish parts of the North Sea, offshore Qatar, Algeria, and in Kazakhstan. Maersk Oil North Sea UK will utilise the POS-GRIP jack-up rental wellheads onthe "Duart" and "Culzean" wells situated in the Central Graben Region of theNorth Sea. The "Duart" well will use an 18-3/4" Plexus HP/HT surface wellheadsystem in conjunction with a standard HP/HT subsea wellhead, which will besupplied by another company. This novel method of deploying subsea wellheadsfrom jack-up rigs is a safer, more convenient and more cost effective way ofinstalling HP/HT subsea production systems in shallower water depths, opening upa new market for the Company. The POS-GRIP method of engineering for wellheads and connectors involvesdeforming one tubular member against another to effect gripping and sealingwithin the elastic range. It has many advantages in dealing with the high forcesassociated with the HP/HT oil and gas environments for which there is increasingglobal demand due to the strong energy appetite and need to explore for oil andgas in ever more challenging locations. Plexus CEO Ben van Bilderbeek said: "This agreement represents our first rentalcontract with Maersk for HP/HT exploration equipment. We believe Plexus wasselected because Maersk had previously partnered wells on which POS-GRIP wasused, which allowed them to recognise the safety, time-savings, and performancebenefits of our technology." * * ENDS * * Contacts: Ben van Bilderbeek Plexus Holdings Plc Tel: 020 7589 8555 Graham Stevens Plexus Holdings Plc Tel: 020 7589 8555Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes: The Plexus Group The Plexus Group is an established oil and gas engineering, and service businessbased in Aberdeen, with an office in London and a presence in Houston, Texasthrough PDT. Plexus' primary has developed and patented a method of engineeringfor oil and gas field wellheads and connectors, named POS GRIP(TM), whichinvolves deforming one tubular member against another to effect gripping andsealing. Plexus was admitted to trading on AIM in December 2005 when it raisedapproximately £10m of new funds for the Company. POS-GRIP wellhead systems have been used in more than 60 oil and gas wells todate by international customers and end users including, ConocoPhillips, BHPBilliton, Talisman Energy, Tullow Oil, Global Santa Fe, Gaz de France andWintershall. In February 2004, BP contracted to purchase POS-GRIP gas platformproduction wellhead systems for the US$4.1 billion Shah Deniz development, oneof the major gas fields in the Caspian Sea. Between 2005 and the end of 2008,the Directors estimate that this relationship has and will generate revenues inexcess of £6.5 million for the Group. The Group is aiming to accelerate the roll out of POS-GRIP technology as asuperior alternative to current wellhead technology. It has particularadvantages in High Pressure/High temperature (HP/HT) oil and gas environmentsfor which there is increasing demand throughout the world. The Company'slong-term goal is to develop POS-GRIP technology as the future industry standardfor wellhead design. This objective includes the distribution of POS-GRIPtechnology through licensees to maximise market penetration. The Directorsbelieve that the Plexus Group can over time become a member of the 'first tier'of global wellhead systems suppliers. This information is provided by RNS The company news service from the London Stock Exchange