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, is pleased to announce that it has signed a contract with Gaz de France Suez E& P Ltd, a leading oil and gas company, to supply its POS-GRIP High Pressure High Temperature (‘HP/HT’) wellhead system for exploration activities in the UK North Sea.
The value of the contract is worth approximately £1.7 million with revenues expected to start within the next three months.
Under the terms of the agreement, Plexus is supplying GDF with its HP/HT 15,000 psi wellhead system with mudline suspension system for exploration activities in the UK North Sea for two wells, Faraday and Jacqui. Since 2007, the Company has secured a number of contracts from GDF, initially in the North Sea and later in the Egyptian region of the Mediterranean Sea.
Plexus CEO Ben van Bilderbeek said, “ Although Plexus is expanding its technology into the subsea arena, our main cash flow driver continues to be the rental of HP/HT wellheads in the most challenging applications in the Jack-up drilling market. This new project for GDF in the North Sea is evidence of the trend by operating companies to tighten safety standards and manage costs. Compared to conventional designs, POS-GRIP friction grip wellhead equipment is cost-effective, reliable, and provides potential time savings, that can render the service cost neutral, when projects are executed according to plan. These benefits become even more attractive in an environment where safety considerations remain paramount, and where a new tax regime was recently announced in the UK. Plexus continues to maintain a steady flow of new contracts, and we anticipate this trend to continue.”
[mappress] Source: Plexus Holdings, August 8, 2011;