Agreement with BP

10 May 2006 07:00

Plexus Holdings Plc10 May 2006 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: 10 May 2006 Plexus Holdings PLC ('Plexus' or 'the Company') Agreement with BP Exploration Operating Company Limited (BP) Plexus Holdings PLC, the AIM listed oil and gas engineering services business,is pleased to provide an update with regards to its agreement to supply HG(TM)POS-GRIP(TM) production equipment to BP for two wells in the North Sea. Following the announcement in February 2006, which highlighted a pendingcontract, the Company has now received a Letter of Award to supply itsproprietary HG POS-GRIP technology and equipment for two new wells on BP'sAmethyst platform in the Southern North Sea. HG wellheads incorporate theCompany's high performance metal seal technology which is activated usingPOS-GRIP. The award is subject to completion of relevant contract terms, and isestimated to generate sales revenue including associated flow control equipmentof circa £1 million from 30 November 2006 over a three month period. The agreement is part of the Company's strategy of attracting increased interestfor its technology and wellhead systems in the production wellhead market, inaddition to the rental market for exploration wellheads. Plexus' POS-GRIPtechnology essentially involves deforming one tubular member within the elasticrange against another to effect both gripping and sealing. By further openingup the production wellhead market, the Company has the potential to increase itsexposure in key established oil producing regions and accelerate the marketstake-up levels. Plexus CEO Ben van Bilderbeek said: "I am pleased that we have now secured thisfurther production wellhead contract, particularly as this is of a lowerpressure (5000 psi) variety. Such contracts further validate our belief thatPOS-GRIP technology will span the pressure spectrum and move into the volumemarket as the oil and gas industry increasingly recognises the technical,performance, and safety benefits of wellheads utilising POS-GRIP technology." * * ENDS * * Contacts: Ben van Bilderbeek Plexus Holdings Plc Tel: 020 7589 8555 Graham Stevens Plexus Holdings Plc Tel: 020 7589 8555 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes: 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), which involves deforming one tubular member against another to effect gripping and sealing. 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 Company's 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