6th Jun 2006 11:14
Plexus Holdings Plc06 June 2006 Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: 6 June 2006 Plexus Holdings PLC ('Plexus' or 'the Company') US$2.4 million Agreement with Brunei Shell Petroleum Sdn Bhd Plexus Holdings PLC, the AIM listed oil and gas engineering services business,has agreed with Brunei Shell Petroleum Sdn Bhd ('BSP'), to supply high pressure/high temperature (HP/HT) rental exploration wellhead equipment, using theCompany's proprietary POS-GRIPTM technology, for a minimum of four wells. Thetwo year project, worth over US$2.4 million, including service and supportcharges, commences in November 2006. The Directors believe that the initialcontract, which is subject to completion of relevant contract terms, should leadto further orders both with Shell and in the region over the coming years. This is the Company's first agreement for the supply of POS-GRIP equipment witha Shell operating company, and is an important milestone in Plexus' declaredstrategy of creating a new wellhead standard. The Directors believe thatPlexus' POS-GRIP technology was chosen in preference to existing systems due toenhanced safety, time, and cost benefits, and that the quality of the projectand the technical grounds on which the equipment was selected will further raisethe profile of the POS-GRIP method. The 15,000 psi gas service wellhead systems to be supplied to BSP are designedfor high temperature service. This type of technology, which is often needed ondeep, prolific production wells, fits into a sector of the market where Plexusis currently particularly active. During the critical flow testing phase ofthese wells, the system relies on proprietary POS-GRIP HG TM metal seals forsuperior integrity. The POS-GRIP method of engineering for wellheads and connectors involvesdeforming one tubular member against another to effect gripping and sealingwithin the elastic range, and has many advantages in dealing with the highforces associated with the HP/HT oil and gas environments for which there isincreasing global demand due to the strong energy appetite and need to explorefor oil and gas in ever more challenging locations. This development further reduces the Company's dependence on the North Sea andwill in the future help it avoid the ongoing impact of rig availabilityconstraints in the North Sea, whilst further opening up the global marketplace.The winning of business in the last six months with the larger oil companies inEgypt and now Brunei bodes well for the future, and gives the Board confidencein the Company's ability to expand further a field and make progress inpotentially lucrative areas such as the Gulf of Mexico. Plexus CEO Ben van Bilderbeek said: "This is a key development for the Companyas it represents our first step into Asia, and is our first contract with Shell.Importantly it provides an excellent 'shop window' within the Shell communityfor POS-GRIP, and is further corroboration of the particular suitability of ourtechnology for the more unconventional and technically challenging applications.POS-GRIP provides a number of key advantages which are particularly beneficialin relation to this contract, including considerable time and cost savings andenhanced safety having undergone tests far beyond the requirement of the moststringent API standards." * * ENDS * * Contacts: Ben van Bilderbeek Plexus Holdings Plc Tel: 020 7589 8555 Graham Stevens Plexus Holdings Plc Tel: 020 7589 8555 Hugo de Salis St Brides Media & Finance Ltd Tel: 020 7242 4477 Notes: The Plexus Group is an established oil and gas engineering, and service businessbased in Aberdeen, with an office in London and a presence in Houston, Texasthrough PDT. Plexus' primary has developed and patented a method of engineeringfor oil and gas field wellheads and connectors, named POS GRIPTM, which involvesdeforming one tubular member against another to effect gripping and sealing.Plexus was admitted to trading on AIM in December 2005 when it raisedapproximately £10m of new funds for the Company. POS-GRIP wellhead systems have been used in more than 60 oil and gas wells todate by international customers and end users including, ConocoPhillips, BHPBilliton, Talisman Energy, Tullow Oil, Global Santa Fe, Gaz de France andWintershall. In February 2004, BP contracted to purchase POS-GRIP gas platformproduction wellhead systems for the US$4.1 billion Shah Deniz development, oneof the major gas fields in the Caspian Sea. Between 2005 and the end of 2008,the Directors estimate that this relationship has and will generate revenues inexcess of £6.5 million for the Group. The Company's is aiming to accelerate the roll out of POS-GRIP technology as asuperior alternative to current wellhead technology. It has particularadvantages in High Pressure/High temperature (HP/HT) oil and gas environmentsfor which there is increasing demand throughout the world. The Company'slong-term goal is to develop POS-GRIP technology as the future industry standardfor wellhead design. This objective includes the distribution of POS-GRIPtechnology through licensees to maximise market penetration. The Directorsbelieve that the Plexus Group can over time become a member of the 'first tier'of global wellhead systems suppliers. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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