Plexus Holdings PLC has further strengthened its market position in the North Sea region having signed an agreement with Swedish oil and gas company, Lundin Petroleum AB, to supply its proprietary POS-GRIP wellhead systems and mudline suspension. The potential value of the contract, which is subject to completion of relevant terms, is estimated at £500,000, with revenues commencing in the first quarter of 2009.
Plexus will provide Lundin with its standard proprietary 15,000 psi, High Pressure/High Temperature (‘HP/HT’) 18.75 inch single stack surface wellhead system for use with an 18-3/4” 15,000psi blow out preventer, for an exploration well being drilled in the Norwegian North Sea. This rental agreement marks the first working relationship between the two companies, which the Directors are hopeful can be strengthened in the future.
Plexus CEO Ben van Bilderbeek said, "We have built a strong presence in the North Sea, with an increasing number of leading international oil and gas companies now using our systems. Recent press speculation indicates that the rising oil price could spark a second North Sea exploration boom, with companies investing in technology to extract previously inaccessible reserves. As a main supplier of exploration wellhead technology in the North Sea, this bodes well for Plexus’s future prospects in the region. With ever more extreme and technically challenging operational environments being ventured into, the need for innovative and technically superior equipment will continue to grow, presenting Plexus with a wealth of future growth opportunities."