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£1.9 Million Well Order
Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP friction-grip method of wellhead engineering, has received a purchase order from a major oil and gas operator to supply surface wellhead and mudline equipment services for a gas and condensate exploration well in the UK Continental Shelf in the North Sea. The value of the order is estimated at approximately £1.9 million with revenues expected to commence in November 2014.
Under the terms of the contract, which is expected to have a duration of 150 days, Plexus will supply its 18-3/4″ 15,000psi High Pressure/High Temperature adjustable surface wellhead and mudline casing support systems. Plexus has a long-standing relationship with this client who was the first to use the Company’s 18-3/4″ 15,000psi HP/HT wellhead on the Norwegian Continental Shelf.
Plexus’ CEO Ben Van Bilderbeek said, “This new order coming on the back of last month’s order from BG Group demonstrates that from a dominant position in the HP/HT market, our core wellhead equipment rental business based on our proprietary POS-GRIP technology continues to win repeat business from customers operating in the North Sea.
“In February 2014 the Wood Report highlighted the need for increased investment in the North Sea. In the resultant upcoming Fiscal Review, due to report in December, UK ministers are expected to unveil new HP/HT tax breaks to boost exploration which we hope will act as a positive catalyst for new drilling activity and indeed new business opportunities for Plexus in the region.
“In addition, we are making excellent progress in rolling out our offering outside the North Sea. We have already established an Asian hub with bases in Singapore and Malaysia to pursue opportunities in this highly active region whilst, albeit at an earlier stage, we are exploring ways to expand into the Americas. Having proven the superiority for safety, performance and time saving capabilities of our equipment in the North Sea, we are highly confident we can capitalise on the considerable expansion opportunities that exist globally for our core jack-up exploration rental business, and I look forward to providing further updates on our progress.”
