Plexus to Supply Maersk Oil with POS-GRIP Equipment

Plexus Holdings has agreed with Maersk Oil North Sea UK Limited, subject to completion of relevant contract terms, to supply the Company's proprietary POS-GRIP high pressure/high temperature (HP/HT) wellhead equipment, for two exploration wells in the North Sea. The six month HP/HT rental contract for 15,000 psi specification, which includes service and support, is worth approximately £800k and is scheduled to commence January 2007. It is anticipated that at least one additional well will follow.

Maersk is a subsidiary of Maersk Olie og Gas AS, which is part of the Danish listed A.P.Moller–Maersk Group with more than 110,000 employees and offices in 125 countries. Active since 1962, Maersk Oil has net production exceeding 500,000 barrels of oil equivalents per day from fields in the British and Danish parts of the North Sea, offshore Qatar, Algeria, and in Kazakhstan.

Maersk Oil North Sea UK will utilise the POS-GRIP jack-up rental wellheads on the "Duart" and "Culzean" wells situated in the Central Graben Region of the North Sea. The "Duart" well will use an 18-3/4" Plexus HP/HT surface wellhead system in conjunction with a standard HP/HT subsea wellhead, which will be supplied by another company. This novel method of deploying subsea wellheads from jack-up rigs is a safer, more convenient and more cost effective way of installing HP/HT subsea production systems in shallower water depths, opening up a new market for the Company.

The POS-GRIP method of engineering for wellheads and connectors involves deforming one tubular member against another to effect gripping and sealing within the elastic range. It has many advantages in dealing with the high forces associated with the HP/HT oil and gas environments for which there is increasing global demand due to the strong energy appetite and need to explore for oil and gas in ever more challenging locations.

Plexus CEO Ben van Bilderbeek said: "This agreement represents our first rental contract with Maersk for HP/HT exploration equipment. We believe Plexus was selected because Maersk had previously partnered wells on which POS-GRIP was used, which allowed them to recognise the safety, time-savings, and performance benefits of our technology."