Plexus bags Centrica contract

PUBLISHED: Oct 07 2013 @ 05:06 | Comments (0) |

Plexus Holdings (LSE:POS), a oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has announced it has been awarded a contract for the supply of surface exploration wellhead equipment services, worth approximately £750,000 from Centrica Energi Norway.

Under the terms of the contract, Plexus will supply its POS-GRIP® 18-3/4” Surface Wellhead System for an appraisal well in the Norwegian Continental Shelf. This follows on from an initial exploration well in 2011. Revenues are expected to commence October 2013.

Plexus is supplying its POS-GRIP 18-3/4” Surface Wellhead System for a low pressure (5000 psi) exploration well where ‘through the BOP’ capability & casing space out adjustability is required. Although the wellhead system is suitable for High Pressure High Temperature (‘HPHT’) applications, it is also ideally suited to the rig’s 18-3/4” Blow Out Preventer (BOP) and the casing specification requirements. This new order is the Company’s second project with Centrica, which follows on from the success of previous work supporting Centrica UK (LSE:CNA). The current agreement is due to expire in February 2014, at which point Centrica has the option to elect for an extension and it is anticipated that at least one follow on well will be awarded.

Plexus’ CEO Ben Van Bilderbeek said, “Centrica used Plexus’ wellhead equipment to drill their first well offshore Norway which was followed by a further seven wells on the Maersk Guardian jack-up rig – all drilled using Plexus POS-GRIP equipment. This included leading operators Centrica, Det Norske, Faroe Petroleum, Lundin & Lotos.

“It is therefore pleasing to secure an additional order with Centrica and demonstrates how Plexus continues to win repeat business from existing customers. This latest order is for a low pressure well and also highlights how our equipment, which has proved itself in terms of safety, reliability and performance in over 300 wells worldwide, a large number in HPHT operating environments, is also suited to less extreme drilling conditions. As the industry increasingly demands best in class equipment for all drilling activity, not only is Plexus well-placed to continue to win new business for our surface exploration wellhead rental business but it also bodes well for our on-going development work to extend our POS-GRIP product range such as our under development HGSS Subsea wellhead” said Mr Van Bilderbeek.

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