Plexus Regulatory News (POS)

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

10 March 2011

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

New Product Development - POS-GRIP 'HGSS™' Subsea Wellhead

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® method of wellhead engineering, is pleased to provide an update on its Joint Industry Project ('JIP') initiative, launched in October 2010, to develop a new method of engineering for subsea wellheads. 

As part of the initiative, Plexus has invited key oil and gas operators and service companies to contribute to the process of applying friction-grip technology to a new subsea wellhead design ('HGSS'), addressing a number of key technical issues that have arisen following recent offshore well control incidents around the world.

·; Formal strategic move into oil and gas subsea wellhead arena - initiative to develop friction-grip subsea wellhead technology

·; Preliminary phase of JIP completed - including conceptual design and active and positive industry dialogue with oil and gas majors and regulators

·; HGSS Subsea Wellhead will include the following features:

o 18-3/4" full bore system, rated to 15,000 psi 350 deg F

o Upgradeable to 20,000 psi, 450 deg F

o 4,000,000 lbs 'instant' casing hanger lockdown capacity

o Annulus monitoring and access capability to address sustained casing pressure ('SCP') situations

o Rigid metal annular seal technology qualified to match the performance of premium casing

o Meet the requirements of API 17D/ISO 13628-4, recently provided additional operator requirements, and Plexus "life cycle" testing

·; 18-24 month development programme - initial capital requirement commitment underway

·; Total project cost over a two year period is estimated at £1.5m to £2m of which a substantial part will be classified as R&D

·; Following the completion of detailed technical specifications, development and qualification testing of HGSS estimated to commence Q1 2012

·; Field trials targeted for deployment Q3 2012

·; Intellectual property ('IP') generated by the project will be owned by Plexus, further strengthening the extensive suite of IP associated with proprietary POS-GRIP technology

Plexus is establishing a dedicated online discussion forum ('HGSS Forum') for interested parties who wish to track the project objectives. For access to the HGSS Forum website contact Mr. Craig Hendrie, Managing Director, Plexus Ocean Systems Limited - e-mail address cfh@posgrip.com.

Plexus CEO Ben van Bilderbeek said, "We are delighted to announce that we are formally proceeding with the initiative to design and develop friction-grip technology for subsea wellhead applications. The project follows six months of active dialogue with a number of operators and regulators about the need for a new design direction to improve safety and performance standards. Important technical guidance was obtained through conversation with industry, re-enforcing our belief in the validity and viability of this project.

"Recent well control incidents have raised awareness of the critical function of wellheads, particularly in subsea applications. With this venture we plan to address the emerging requirement for improved integrity throughout and beyond field life. As operating conditions become more extreme, long term performance will inevitably require that firstly all critical seals are isolated from forces at work in the well, and secondly that monitoring facilities, combined with the ability to effect repairs to the production casing annulus are provided, should such remedial action prove necessary.

"The Plexus Board is aware that some of the project objectives are formidable, and that it will require a sustained effort to meet all the goals we are setting ourselves. Our extensive experience with high pressure and high temperature drilling operations around the world, for which Plexus has developed a reputation of delivering unique yet deployable solutions, give us confidence that friction-grip technology will ultimately prove to be a safer and expedient subsea wellhead option in the years to come."

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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 150 oil and gas wells by international companies including Apache Energy Australia, BHP Billiton, BG International, Bowleven plc, BP, Brunei Shell Petroleum, Cairn Energy, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy Limited, 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.