Plexus has signed an agreement with Red Sea Petroleum Operating Company ('RSPOC') to supply its proprietary POS-GRIP® High Pressure/High Temperature ('HP/HT') exploration rental wellhead systems for wells being drilled in the Red Sea.
The value of the contract is estimated at £1.2 million with revenues commencing in December 2009. This could increase to £2.4 million if RSPOC takes up its option to increase the order if further wells are required.
RSPOC will utilize Plexus' POS-GRIP, HP/HT 18.75 inch single stack with blow out preventer ('BOP'), for enhanced safety and its time and cost saving capabilities. The agreement is the first working relationship between Plexus and RSPOC, and one which the Directors are hopeful will be strengthened in the future. Importantly, this agreement marks another step for Plexus' geographic expansion strategy, as the Company builds its position and establishes its reputation in North Africa.
Plexus CEO Ben van Bilderbeek said, "We are delighted to have secured yet another contract win in the North African region which is in addition to existing contracts with BP Egypt and Shell Egypt.
"In terms of the recent economic downturn, I believe the Company is in a strong position to weather the current storm due to the continuing demand for its products and the increasing recognition being given to our proprietary technology. Additionally, with new debt facilities of £5 million in place and the weakening of Sterling over the last 12 months having the potential to boost our growing non UK activities and international contract wins, we look forward to the future with confidence."
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