Plexus Holdings PLC (AIM:POS) shares rose 15% to 25.4p after the oil and gas engineering services business highlighted a "milestone" contract win for its wellhead engineering technology collaboration with SLB (Schlumberger).
The AIM-quoted company said it expects equipment rental revenues in the region of £100,000 for the contract, which it said was secured with a major North Sea company via SLB as licensor for the technology.
Its Exact adjustable wellhead and Centric mudline suspension systems will be used by SLB for the plug and abandonment (P&A) project, for which work will take place in the final quarter of the year, it said in a statement.
Plexus said the contract builds on the ongoing relationship with SLB and shows its "growing reputation in the field of adjustable wellhead and mudline technology".
Chief executive Ben Van Bilderbeek said: "Our continued growth into the expanding P&A market is highly encouraging particularly as this project utilises the Exact and Centric technology specifically designed to provide the safest and quickest tieback and drilling solutions for not only these types of P&A wells, but also exploration and appraisal wells."
He expressed confidence that further opportunities for similar work will arise in the future.
Earlier this month, Plexus notified of the successful completion of work for another P&A campaign, which generated £850,000 of revenue - 70% more than its original estimate. And in August another major contract's value rose from the £5 million originally to around £8 million.
Shares in the company are up over 850% over the past year, up to levels last seen before the pandemic.