Shares in Plexus Holdings PLC (LON:POS) flowed higher on Monday morning after the oil services group signed a new four-year contract with Danish giant Maersk Oil North Sea UK.
The tie-up will see Plexus prepare and provide wellhead and mudline suspension systems on a stand-by basis, ready to be mobilised should Maersk need to drill a relief well during the development of the Maersk Culzean platforms.
The contract – which could be extended by a further year – also provides for the supply of additional exploration wellhead equipment for future appraisal wells.
Plexus expects revenues to commence during its next financial year, which begins at the start of next month.
“This is a fantastic contract for Plexus which will help to underpin our future revenues, as well as delivering the opportunity for further exploration well business with Maersk,” said chief executive Ben Van Bilderbeek.
“It is also fitting that Plexus has been awarded this contract for the high profile Culzean Development, as we were involved in the initial exploration wells with Maersk in the Culzean field.”
Shares gained 6% in early deals to 69p.