Plexus to Supply BP with HG POS-GRIP Production Equipment

Plexus Holdings says that following the announcement in February 2006, which highlighted a pending contract, the Company has now received a Letter of Award to supply its proprietary HG POS-GRIP technology and equipment for two new wells on BP's Amethyst platform in the Southern North Sea. HG wellheads incorporate the Company's high performance metal seal technology which is activated using POS-GRIP. The award is subject to completion of relevant contract terms, and is estimated to generate sales revenue including associated flow control equipment of circa £1 million from November 30, 2006 over a three month period.

The agreement is part of the Company's strategy of attracting increased interest for its technology and wellhead systems in the production wellhead market, in addition to the rental market for exploration wellheads. Plexus' POS-GRIP technology essentially involves deforming one tubular member within the elastic range against another to effect both gripping and sealing. By further opening up the production wellhead market, the Company has the potential to increase its exposure in key established oil producing regions and accelerate the markets take-up levels.

Plexus CEO Ben van Bilderbeek said: "I am pleased that we have now secured this further production wellhead contract, particularly as this is of a lower pressure (5000 psi) variety. Such contracts further validate our belief that POS-GRIP technology will span the pressure spectrum and move into the volume market as the oil and gas industry increasingly recognises the technical, performance, and safety benefits of wellheads utilising POS-GRIP technology."