Plexus Holdings PLC (AIM:POS) won an order for a POS-GRIP surface production wellhead system from a leading North Sea operator.
The equipment is scheduled for delivery in the second quarter of 2022 with the contract running for approximately 120 days. Most of the revenue will be booked during the current 2021/22 financial year.
Under the terms of the contract, Plexus will receive milestone payments following the date of the signing of the purchase order through to completion.
Ben Van Bilderbeek, Plexus’ chief executive, said: “Securing an order for POS-GRIP wellheads in the current challenging 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.
“Our equipment has proven to be superior in terms of Totex performance, reliability, and safety over many years in the field.
“Furthermore, our technology has generated considerable operational cost savings via reduced installation times and reduced NPT (non-productive time), by not having to shut down production to carry out maintenance.”
Van Bilderbeek said Plexus has a growing pipeline for its wellhead systems, with interest being driven by the need to eradicate fugitive methane emissions from the natural gas chain.
“At the well-site, POS-GRIP's leak-proof wellheads can achieve such goals in a way that conventional wellheads cannot,” he said.