POS Plexus Holdings Plc

TIDMPOS

RNS Number : 4578E

Plexus Holdings Plc

07 April 2011

Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services

7 April 2011

Plexus Holdings PLC ('Plexus' or 'the Company')

$500,000 USD Contract win with new customer LLC Gazflot - Russia

Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP(R) method of wellhead engineering, has signed an agreement to supply as the end user LLC Gazflot ('Gazflot'), a subsidiary of leading Russian oil and gas company Gazprom, with its proprietary TRT-S(TM) mudline suspension ('MLS') equipment for oil and gas exploration drilling activities for one well offshore West Kamchatka in the Magadan Basin in the Okhotsk Sea, Russia. The contract for the supply of both MLS and service is worth approximately $500,000 USD, and is expected to be completed by November 2011.

Plexus' patented TRT-S MLS equipment enables jack-up drilling rigs to transfer casing loads from a rig to the sea bed whilst allowing for a subsequent planned disengagement and possible suspension platform tieback options for a wellhead system. Due to climate conditions in the West Kamchatka region drilling activities for the well can only be conducted from May to September. However it is anticipated that additional wells will be drilled in 2012, of which Plexus is hopeful to tender both MLS services and potentially for the supply of its POS-GRIP surface wellhead equipment technology.

Plexus CEO Ben van Bilderbeek said, "This contract marks yet another geographic milestone in Plexus' growth strategy as it continues to develop into an internationally recognised force in the supply of specialised and technically superior oil and gas wellhead and equipment services. Not only is Gazflot a new customer for the Company, Russia is also a new region for us and one in which Plexus is focussed on gaining a foothold in given the ever increasing number of opportunities with large operators active in the Russian Artic Shelf such as Rosneft and Lukoil.

"I would also like to highlight that our equipment allows the removal of temporary abandonment caps through the blow out preventer ('BOP'), and for tie back to occur before the abandonment caps are removed. The importance of such an essential safety feature was formally recognised by the Montara Commission of Inquiry Report in June 2010 in relation to the oil spill incident offshore Australia in late 2009."

Under the terms of the agreement, Plexus has taken the opportunity to apply for both Gost R and Permit Roztechnadzor Certification not only for the supply of its proprietary MLS equipment to Gazflot, but also for the full range of POS-GRIP wellhead equipment. Gaining such certification is a requirement for operating in Russia and has to be issued for each type of technological equipment used at potentially hazardous manufacturing facilities.

**ENDS**

For further information please visit www.posgrip.com or contact:

 
 Ben van Bilderbeek   Plexus Holdings PLC         Tel: 020 7795 6890 
 Graham Stevens       Plexus Holdings PLC         Tel: 020 7795 6890 
 Jon Fitzpatrick      Cenkos Securities PLC       Tel: 020 7397 8900 
 Ken Fleming          Cenkos Securities PLC       Tel: 0131 220 6939 
 Felicity Edwards     St Brides Media & Finance   Tel: 020 7236 1177 
                       Ltd 
 

Notes to Editors:

Plexus, which began trading on AIM in December 2005, is an established oil and gas engineering and services business which supplies wellhead and mudline suspension equipment for exploration and production applications based in Aberdeen, with an office in London, Cairo, Kuala Lumpur and a presence in Houston, Texas. It has developed and patented a method of engineering for oil and gas field wellheads and connectors, POS-GRIP, which involves deforming one tubular member against another to effect gripping and sealing.

POS-GRIP wellhead systems have to date been used or selected to be used in over 150 oil and gas wells by international companies including Apache Energy Australia, BHP Billiton, BG International, Bowleven plc, BP, Brunei Shell Petroleum, Cairn Energy, Centrica, ConocoPhillips, Dubai Petroleum, GDF SUEZ, Global Santa Fe, Maersk, Petro-Canada Trinidad & Tobago, Red Sea Petroleum Operating Company, Repsol, RWE, Senergy Limited, Shell Egypt, StatoilHydro, Silverstone Energy, Talisman Energy, Tullow Oil, and Wintershall.

The Company plans to accelerate the roll out of POS-GRIP technology as a superior alternative to current wellhead technology. It has particular advantages in HP/HT (High Pressure/High Temperature) and X-HP-HT (Extreme High Pressure/High Temperature) oil and gas environments for which there is increasing demand throughout the world. The Company's long-term goal is to develop POS-GRIP technology as the future industry standard for wellhead design. This objective includes the distribution of POS-GRIP technology through licensees to maximise market penetration.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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