REG - Plexus Holdings Plc - North Sea wellhead production order

Plexus HoldingsAnnouncement

23/12/2021 07:00

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RNS Number : 5442W  Plexus Holdings Plc  23 December 2021

 

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

 

This announcement contains inside information

 

 

23(rd) December 2021

 

 

 

 

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

"POS-GRIP" production wellhead contract award

 

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, 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 for a leading North Sea operator.

 

The order includes Plexus' POS-GRIP 10,000 psi leak proof "HG®" metal to
metal sealing surface production wellhead, together with associated spares and
valve equipment for a new gas well in the 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 equipment is
scheduled for delivery in second quarter 2022. The contract is expected to
have a duration of approximately 120 days, with most of the revenue to be
booked during the Company's current 2021/22 financial year.

 

This purchase order is in line with the Company's IP led strategy to continue
to gain market share within the production wellhead marketplace in conjunction
with the recent cooperation agreement with Cameron, (a Schlumberger Group
company) for the supply of Jack-up exploration wellhead and mudline equipment,
together with the intention to move into other areas of the energy sector,
including potentially, geothermal, carbon capture and hydrogen storage.

 

 

Plexus' CEO Ben Van Bilderbeek said, "Following our recent cooperation
agreement with Cameron in relation to the supply of Jack-up exploration
wellheads, this latest order shows we in addition continue to progress our
strategy of direct sales in the surface production wellhead marketplace with
our "HG" metal sealing technology. Securing an order for POS-GRIP wellheads in
the current challenging 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 many 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 in the field.  Furthermore, our
technology has generated considerable operational cost savings via reduced
installation times and reduced NPT (non-productive time), by not having to
shut down production to carry out maintenance.

 

 

 

"With a growing pipeline of opportunities, we are hopeful that this latest
order will prove to be a bellwether, as we start to emerge from the global
COVID-19 pandemic induced malaise that has impacted our industry. Importantly,
this production well order is for gas, 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, and
operators strive to deliver on ESG commitments. Plexus believes that it has an
important role to play in this transition process as pressure grows to
eradicate harmful fugitive methane emissions from the entirety of the natural
gas consumption chain, whenever and wherever possible. At the well-site,
POS-GRIP's leak-proof wellheads can achieve such goals in a way that
conventional wellheads cannot, and as a result, we believe our production
wellhead technology delivers a compelling economic and environmental
proposition for the surface production operations we are actively
targeting."

 

**ENDS**

 

For further information please visit www.posgrip.com (http://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
 Isabel de Salis     St Brides Partners Ltd   Tel: 020 7236 1177
 Max Bennett         St Brides Partners Ltd   Tel: 020 7236 1177

 

Notes

 

Plexus Holdings plc (AIM: POS) is an IP led company
focussed on establishing its patented leak-proof POS-GRIP® wellhead and
associated equipment as the go-to technology for energy markets whilst making
a genuine contribution to the oil and gas industry's ESG and NetZero goals by
championing "through the BOP" (Blow-out Preventer) designs, and lifetime
leak-proof HG® metal-to-metal sealing systems.  Having protected the
environment for many years through these technological innovations, the
Company was awarded the London Stock Exchange's Green Economy Mark in July
2021 and continues to place emphasis on its ability to reduce harmful
methane emissions and unnecessary maintenance and intervention costs.

 

Headquartered in Aberdeen, the Company has provided leak-free wellhead
performance in over 400 wells worldwide and worked with an array of blue-chip
oil and gas company clients.  As well as generating direct revenues from
securing orders for surface production wellheads particularly in the UK and
European North Sea regions, the Company has
several licencing/collaboration agreements with major partners including FMC
Technologies, which is a subsidiary of TechnipFMC, and LLC Gusar in Russia.
Furthermore, it works closely with Cameron, a Schlumberger Group company
Cameron has a non-exclusive licence to use the POS-GRIP and HG®
metal-to-metal seal method of wellhead engineering for the development of
conventional and unconventional oil and gas surface wellheads, and Plexus
entered into a Cooperation Agreement,

 

 

which enabled Plexus to return to the Jack-up Exploration (Adjustable)
Wellhead rental business for

'through the BOP' jack-up applications, where Cameron will help to provide
Plexus with sales leads and market insight through a formal Sales Advisory
Board.

 

Plexus' current suite of products and applications include: "HG" wellheads,
which combine POS-GRIP technology with gas tight leak free metal-to-metal
sealing; the Python® subsea wellhead, developed in a Joint Industry Project
with several industry leaders; the POS-SET™ Connector for the
de-commissioning and abandonment market; and Tersus-PCT, an innovative HP/HT
tie back connector product. Having proved the superior uniquely enabling
qualities of POS-GRIP Technology, Plexus is now also focused on establishing
its technology and equipment in other markets such as Plug and Abandonment
de-commissioning, carbon capture, gas storage, hydrogen and geothermal where
it can play an important role in reducing harmful methane emission risks as
operators strive to deliver on ESG commitments and NetZero goals in a safe and
cost effective way.

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