New Contract with Norsk Hydro

17 Sep 2007 07:01

Plexus Holdings Plc17 September 2007 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services 17th September 2007 Plexus Holdings PLC ("Plexus" or "the Company") New Contract with Norsk Hydro Produksjon AS ("Norsk Hydro") Plexus Holdings PLC, the AIM quoted oil and gas engineering services business,has signed a contract with leading offshore oil company Norsk Hydro ProduksjonAS to supply a proprietary POS-GRIP(R) wellhead system for use in the NorwegianNorth Sea. This agreement marks the first working partnership between thecompanies, which Plexus hopes to build upon in the future. The immediate valueof the contract is approximately £700,000, with revenues commencing in the lastquarter of the company's financial year to 30 June 2008. Plexus will supply Norsk Hydro with POS-GRIP High Pressure/High Temperature ("HP/HT") exploration rental wellhead equipment, mudline suspension equipment andservice support. The Directors believe that Plexus' equipment offers the besttechnical solution for exploration wells drilled from the latest generation ofJackup rigs, as it allows the blow out preventer ("BOP") to remain in place forthe well, providing time savings and safety benefits. The POS-GRIP method of engineering for wellheads and connectors has manyadvantages in dealing with the high forces associated with the HP/HT oil and gasenvironments, for which there is increasing global demand due to the strongenergy appetite and the need to explore for oil and gas in ever more challenginglocations. With growing support from many of the oil and gas majors for Plexus'proprietary POS-GRIP technology, the Company is ideally placed to build uponthis with the aim of developing POS-GRIP wellheads as a new industry standard. Plexus CEO Ben van Bilderbeek said, "This is a significant contract win forPlexus as it represents the first working partnership for both companies and isfurther corroboration of the particular suitability of our technology for themore unconventional and technically challenging offshore drilling applications.POS-GRIP provides a number of key advantages which are particularly beneficialin relation to a HP/HT rental wellhead contract, including considerable time andcost savings and enhanced safety." * * 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 Ken Fleming Brewin Dolphin Tel: 0141 221 7733 Elizabeth Kennedy Brewin Dolphin Tel: 0141 221 7733 Felicity Edwards St Brides Media & Finance Ltd Tel: 020 7242 4477 Isabel Crossley St Brides Media & Finance Ltd Tel: 020 7242 4477 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-GRIPTM, whichinvolves deforming one tubular member against another to effect gripping andsealing. POS-GRIP wellhead systems have to date been used in over 100 oil and gas wellsby international companies including BHP Billiton, BP, Brunei Shell Petroleum,ConocoPhillips, Gaz de France, Global Santa Fe, Maersk, Petro-Canada Trinidad &Tobago, Repsol, Talisman Energy, Tullow Oil, and Wintershall. 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