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Plexus Holdings Plc - “POS-GRIP” production wellhead contract awarded

RNS Number : 3903U
Plexus Holdings Plc
29 July 2020
 

 

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

 

This announcement contains inside information

 

 

 

 

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

"POS-GRIP" production wellhead contract awarded

 

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, known for its safety, time and cost saving capabilities, is pleased to announce that it has been awarded a purchase order for a POS-GRIP surface production wellhead system from Spirit Energy. 

 

The order from Spirit Energy includes Plexus' POS-GRIP 5,000psi leak proof "HG" metal to metal sealing surface production wellhead and associated spares and equipment for a new gas well in the UK North Sea. Under the terms of the contract, Plexus will receive milestone payments following the date of the signing of the purchase order through to completion. The wellhead is scheduled for delivery to Spirit Energy in February 2021. The contract is expected to have a duration of approximately 120 days, with most of the revenues to be booked during the Company's 2020/21 financial year.

 

This is the second purchase order for a surface production wellhead that Plexus has been awarded by Spirit Energy, which was previously known as Centrica North Sea Limited ('Centrica'). Significantly it is Plexus' first major order since the COVID-19 pandemic struck and is a good indicator of the operations that Plexus has managed to maintain during this time.

 

The purchase order is in line with the Company's IP-led strategy to extend the application of its POS-GRIP technology beyond jack-up exploration, where it has been used on over 400 wells worldwide, into higher value areas of the energy sector, including oil and gas production, geothermal and other applications.

 

Plexus' CEO Ben Van Bilderbeek said, "Securing an order for POS-GRIP wellheads in the current climate is positive, particularly when one considers the long lead times associated with the award of such contracts, the ongoing COVID-19 pandemic and the continued volatility in global oil and gas markets.  For years, POS-GRIP wellheads have not only delivered a superior sealing solution but also one that is cost-effective and maintenance free. Our equipment has proven to be superior in terms of TOTEX performance, reliability, and safety over many years out in the field.  In addition, our technology has generated considerable operational cost savings via reduced installation times and reduced non-producing time, by not having to shut down production to carry out maintenance.

 

"This order is for a gas production well, and as the cleanest hydrocarbon to combust in terms of CO2 emissions, natural gas is increasingly viewed as a key transitional fuel, as the world moves towards net zero emissions. A key assumption behind this view is that harmful fugitive methane emissions can and must be eradicated from the entirety of the natural gas consumption chain. At the well-site, POS-GRIP's leak-proof wellheads can do that and as a result, we believe our production technology delivers a compelling economic and environmental proposition for the surface production operations we are targeting. With a substantial pipeline of opportunities, we are hopeful that today's order from Spirit Energy will prove to be a bellwether, as the oil and gas industry begins to emerge from the global COVID-19 pandemic-induced malaise."   

 

**ENDS**

 

For further information please visit www.posgrip.com or contact:

 

Ben van Bilderbeek

Plexus Holdings PLC  

Tel: 020 7795 6890

Graham Stevens

Plexus Holdings PLC

Tel: 020 7795 6890

Derrick Lee

Pete Lynch

Cenkos Securities PLC

Cenkos Securities PLC

Tel: 0131 220 9100

Tel: 0131 220 9100

Frank Buhagiar

St Brides Partners Ltd

Tel: 020 7236 1177

Isabel de Salis

St Brides Partners Ltd

Tel: 020 7236 1177

 

NOTES:

 

AIM-traded oil and gas engineering services company Plexus (AIM: POS) is an IP led company that has developed a range of products and applications based on its patent-protected POS-GRIP method of engineering.

 

POS-GRIP is a friction grip technology which squeezes a pressure vessel from the outside to hold and seal components in place. In wellheads, this provides the capability to very simply secure casing and tubing hangers in the well. POS-GRIP can also be used to energise "HG" Seals directly between the contacting components, rather than introducing a separate sealing element as with conventional technology. When combined, these features provide for high-integrity gas-tight sealing which guarantees leak-free and maintenance-free performance. The benefits of this are reduced installation costs due to the simplicity, enhanced performance to guarantee safety, zero hydrocarbon leaks to the environment as well as major potential cost savings in eliminating remedial work and scheduled maintenance. POS-GRIP has potential applications in connectors, geothermal applications and the nuclear industry.

 

Plexus is focused on establishing its technology and equipment in markets beyond jack-up exploration drilling, including surface production wellheads, subsea and de-commissioning.  Its suite of ongoing  products and applications include: "HG" wellheads, which combine POS-GRIP technology with gas tight metal sealing; the Python® subsea wellhead (a new standard for subsea wellheads - developed in a Joint Industry Project supported by Royal Dutch Shell, BG (now owned by Shell), Wintershall, Total, Maersk (now owned by Total), Tullow Oil, eni, Senergy (now Lloyds register), and Oil States Industries Inc); the POS-SET™ connector for the growing de-commissioning and abandonment market; and Tersus-PCT, an innovative HP/HT tie back connector product.


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
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