Plexus Wins Subsea Order from AGR for its POS-GRIP Technology

Plexus Holdings has secured a purchase order from AGR Petroleum to supply a subsea cross-over wellhead system enabling the conversion of pre-drilled wells to subsea production for AGR's client Silverstone Energy. This order represents an important milestone for Plexus as it marks the first subsea application for its POS-GRIP technology and method of engineering. The initial order is for approximately £250,000 and additional revenue is expected for rental equipment and service support during installation, which is scheduled for Q1 2008.

AGR is managing the drilling and completions side of the project for Silverstone, including equipment selection and well operations. Another vendor is supplying the subsea Xmas tree and wellhead protection structure, which interfaces with the Plexus wellhead.

The POS-GRIP M2S adjustable subsea cross-over wellhead system ('M2S') is designed for use in Jackup depth waters, is rated at 5,000 psi, and is readily upgradeable for high pressure/ high temperature ('HP/HT') applications, as it incorporates Plexus' metal to metal POS-GRIP activated HG seals. The M2S product development will allow for the conversion of pre-drilled exploration wells into subsea production, as well as drilling and completion of subsea wells from jackups. The Directors therefore expect increased interest in the subsea capabilities of POS-GRIP, particularly from our North Sea and Far East customers in the medium term.

Plexus CEO Ben van Bilderbeek said, "POS-GRIP technology is our proprietary method of engineering which to date has focused on the supply of surface wellhead systems. This first subsea production application, together with the previously announced product development for POS-GRIP technology to be used on semi-submersible drilling rig operations in deepwater, takes Plexus directly into the increasingly important subsea marketplace. As we have previously worked with AGR on a number of projects, I am delighted to further strengthen our relationship with them as well as embarking on a new relationship with Silverstone".