Plexus Holdings Plc "POS-GRIP" production wellhead contract awarded (3903U)
July 29 2020 - 1:00AM
UK Regulatory
TIDMPOS
RNS Number : 3903U
Plexus Holdings Plc
29 July 2020
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
equipment & services
This announcement contains inside information
Plexus Holdings PLC ('Plexus' or 'the Company')
"POS-GRIP" production wellhead contract awarded
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, known for its safety,
time and cost saving capabilities, is pleased to announce that it
has been awarded a purchase order for a POS-GRIP surface production
wellhead system from Spirit Energy.
The order from Spirit Energy includes Plexus' POS-GRIP 5,000psi
leak proof "HG" metal to metal sealing surface production wellhead
and associated spares and equipment for a new gas well in the UK
North Sea. Under the terms of the contract, Plexus will receive
milestone payments following the date of the signing of the
purchase order through to completion. The wellhead is scheduled for
delivery to Spirit Energy in February 2021. The contract is
expected to have a duration of approximately 120 days, with most of
the revenues to be booked during the Company's 2020/21 financial
year.
This is the second purchase order for a surface production
wellhead that Plexus has been awarded by Spirit Energy, which was
previously known as Centrica North Sea Limited ('Centrica').
Significantly it is Plexus' first major order since the COVID-19
pandemic struck and is a good indicator of the operations that
Plexus has managed to maintain during this time.
The purchase order is in line with the Company's IP-led strategy
to extend the application of its POS-GRIP technology beyond jack-up
exploration, where it has been used on over 400 wells worldwide,
into higher value areas of the energy sector, including oil and gas
production, geothermal and other applications.
Plexus' CEO Ben Van Bilderbeek said, "Securing an order for
POS-GRIP wellheads in the current 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. For years, POS-GRIP
wellheads have not only delivered a superior sealing solution but
also one that is cost-effective and maintenance free. Our equipment
has proven to be superior in terms of TOTEX performance,
reliability, and safety over many years out in the field. In
addition, our technology has generated considerable operational
cost savings via reduced installation times and reduced
non-producing time, by not having to shut down production to carry
out maintenance.
"This order is for a gas production well, and as the cleanest
hydrocarbon to combust in terms of CO(2) emissions, natural gas is
increasingly viewed as a key transitional fuel, as the world moves
towards net zero emissions. A key assumption behind this view is
that harmful fugitive methane emissions can and must be eradicated
from the entirety of the natural gas consumption chain. At the
well-site, POS-GRIP's leak-proof wellheads can do that and as a
result, we believe our production technology delivers a compelling
economic and environmental proposition for the surface production
operations we are targeting. With a substantial pipeline of
opportunities, we are hopeful that today's order from Spirit Energy
will prove to be a bellwether, as the oil and gas industry begins
to emerge from the global COVID-19 pandemic-induced malaise."
**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
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Pete Lynch Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
AIM-traded oil and gas engineering services company Plexus (AIM:
POS) is an IP led company that has developed a range of products
and applications based on its patent-protected POS-GRIP method of
engineering.
POS-GRIP is a friction grip technology which squeezes a pressure
vessel from the outside to hold and seal components in place. In
wellheads, this provides the capability to very simply secure
casing and tubing hangers in the well. POS-GRIP can also be used to
energise "HG" Seals directly between the contacting components,
rather than introducing a separate sealing element as with
conventional technology. When combined, these features provide for
high-integrity gas-tight sealing which guarantees leak-free and
maintenance-free performance. The benefits of this are reduced
installation costs due to the simplicity, enhanced performance to
guarantee safety, zero hydrocarbon leaks to the environment as well
as major potential cost savings in eliminating remedial work and
scheduled maintenance. POS-GRIP has potential applications in
connectors, geothermal applications and the nuclear industry.
Plexus is focused on establishing its technology and equipment
in markets beyond jack-up exploration drilling, including surface
production wellheads, subsea and de-commissioning. Its suite of
ongoing products and applications include: "HG" wellheads, which
combine POS-GRIP technology with gas tight metal sealing; the
Python(R) subsea wellhead (a new standard for subsea wellheads -
developed in a Joint Industry Project supported by Royal Dutch
Shell, BG (now owned by Shell), Wintershall, Total, Maersk (now
owned by Total), Tullow Oil, eni, Senergy (now Lloyds register),
and Oil States Industries Inc); the POS-SET(TM) connector for the
growing de-commissioning and abandonment market; and Tersus-PCT, an
innovative HP/HT tie back connector product.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
MSCGZGZNNRDGGZM
(END) Dow Jones Newswires
July 29, 2020 02:00 ET (06:00 GMT)
Plexus (LSE:POS)
Historical Stock Chart
From Apr 2024 to May 2024
Plexus (LSE:POS)
Historical Stock Chart
From May 2023 to May 2024