Plexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, announces that it has secured a £1 million contract to supply its POS-GRIP technology wellhead equipment to new customer Lotos Exploration & Production Norge AS (‘Lotos’), a Norwegian subsidiary of the Polish oil and gas major Grupa Lotos. The contract is for a two year period and can be extended for an additional year. Revenues are due to commence November 2012.
The exploration drilling programme will utilise Plexus’ high pressure high temperature (‘HPHT’) 18-3/4″ wellhead equipment and casing support equipment for the Skagen well. Lotos is a new customer for Plexus and further strengthens the Company’s position in the region. The contract win follows on from a successful multi-well campaign with other Norwegian oil and gas companies signed on 29 March 2012.
Plexus CEO Ben Van Bilderbeek said, “The Norwegian oil and gas sector is a highly attractive region to be operating in and one in which Plexus continues to build its presence as a leading HPHT wellhead equipment specialist. With developments such as Norway’s 22nd oil and gas licensing round on the horizon, where up to 86 licencing blocks will be awarded in areas such as the highly prospective Artic region, which according to the US Geological Survey holds approximately 13% of the world’s undiscovered conventional oil and 30% of undiscovered natural gas, we see the region as a significant future growth opportunity for Plexus. With this in mind, we are delighted to announce Lotos as a new customer and we view today’s contract as further testament to the operational benefits of our POS-GRIP HPHT wellhead equipment known for its safety and cost saving capabilities.”
Press Release, October 11, 2012