Plexus Holdings has entered into a contract extension with BP Egypt, a leading oil and gas company, to supply its proprietary POS-GRIP® 15,000 psi High Pressure/High Temperature ('HP/HT') wellhead systems, together with service and support for gas exploration in the Nile Delta concession. The value of the contract is estimated at £1.6 million, with revenues anticipated to commence before the Company's year end June 30, 2009, and continuing into 2010.
This agreement marks a strengthening relationship between the two companies. Plexus first signed a rental wellhead contract with BP Egypt in 2006, for an exploration drilling program which expired at the end of 2008. The renewal of this contract with BP Egypt acts as further testament of the commercial strength and capabilities of Plexus' HP/HT POS-GRIP wellhead technology, increasingly known for it cost, safety and time saving advantages.
Plexus CEO Ben van Bilderbeek said, "We are delighted to have secured this contract extension with BP Egypt, as we continue to consolidate our position as a superior wellhead equipment supplier within the Northern African region. Our aim is to increase the awareness of our unique POS-GRIP technology within the international oil and gas community and eventually secure its position as the industry standard for wellhead design. Naturally, each new or extended contract takes us one more step forward in reaching this goal, and in order to accelerate this process, we continue to seek licensing or JV partnerships with key industry players."