Plexus Announces Share Placing to Support Company’s Growth Strategy

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 conducted a placing to raise, in aggregate, approximately £6.83 million before expenses by way of a placing of 2,787,624 ordinary shares of 1 penny each at a price of 245p per share (the ‘Placing Price’).

This comprises 1,020,408 new ordinary shares of 1 penny each which are being issued by the Company and 1,067,216 new ordinary shares of 1 penny each which are being sold following the exercise of share options by certain optionholders of the Company as described further below (together ‘New Ordinary Shares’). In addition, conditional on admission of the New OrdinaryShares to trading on AIM (“Admission”), an existing shareholder of the Company as detailed below has sold 700,000 ordinary shares (‘Existing Ordinary Shares’) of 1 penny each to meet demand from new and existing institutional investors (the placing of New Ordinary Shares and Existing Ordinary Shares being collectively referred to as ‘the Placing’). The Company’s Nomad and Broker, Cenkos Securities plc conducted the Placing.

Plexus intends to use the net proceeds of the Placing of the New Ordinary Shares which are being issued by the Company to support the Company’s growth strategy, which continues to be focused on expanding both the international reach and the range of applications of its innovative POS-GRIP friction-grip oil and gas wellhead technology, known for its superior safety, time and cost saving attributes. Specifically, the net proceeds raised for the Company will be used to provide:

• Financing of the second half of the HGSS™ subsea wellhead Joint Industry Project (‘JIP’) estimated to cost up to a further £1.5m to £2m to complete over the next 18 months. The funds raised for the HGSS project will enable existing working capital to be directed towards the on-going development and future implementation of a range of growth strategy initiatives over the next three years which include the following:

• Completion of up to 20,000 psi Tie-back product JIP, and the commencement of sales initiatives to run alongside the running of a prototype in the field

• Possible establishment of an additional JIP to accelerate the design and development of subsea annulus management and monitoring technology and capability that would then be able to be transferred to the new HGSS subsea wellhead design and development process so as to accelerate the delivery of this target feature

• Financing of additional capex for ongoing expansion of rental wellhead exploration inventory fleet stationed in Aberdeen

• The balance of the new funds raised will be used to support the planned Asian sales strategy from Singapore and in particular:

• Establishing a local rental wellhead inventory permanently based in Singapore which will form the new Plexus ‘Asian Hub’

• Building out of the Asian hub and addressing additional infrastructure costs such as warehouse, offices, personnel and marketing.

Ben van Bilderbeek, CEO of Plexus said, “I am delighted by the strong support received from both existing shareholders and new institutional investors for this £6.83 million placing. I believe this shows that the investment community recognises the substantial progress we have made to date as a leading oil and gas wellhead service company. Most importantly, it shows the significant growth potential, both organically and via future licencing and joint venture agreements, of our unique and proprietary POS-GRIP wellhead technology which I believe is capable of transforming the oil and gas wellhead services landscape across exploration, production and subsea drilling applications.

“Our POS-GRIP equipment has proved itself in terms of safety, reliability and performance especially for high pressure/high temperature, in over 300 wells worldwide operated by major oil and gas companies. For this reason, I believe its best in class capabilities place us in an ideal position to continue to win new business for our surface exploration wellhead rental business, particularly as exploration activity opportunities increase and drilling environments become ever more technically challenging.

“The new equity finance will in turn help to accelerate our pursuit of new business opportunities, whilst increasing our global reach. We are currently strengthening Plexus’ presence and marketing activities in the important Asian growth region, particularly Singapore, Malaysia, Brunei, and Australia. In addition we are making excellent progress with our JIP where we are working alongside six major oil and gas companies to develop and commercialise a new and safer subsea wellhead, HGSS, utilising Plexus’ patented POS-GRIP technology. We believe our planned entry into the fast growing and sizeable subsea market will be a major milestone for the Company, and it is particularly beneficial to have a number of global oil and gas operators such as ENI, Maersk, Shell, and Total working alongside our own design engineers as consulting partners to the project.

“We look forward to reporting on these developments in the coming months as we continue to promote POS-GRIP friction grip technology as the wellhead and technology of choice and indeed necessity due to its superior safety and operational benefits.”

Press Release, December 03, 2013

 

Share this article

Follow Subsea World News

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

SPE/IADC Middle East Drilling Technology Conference and Exhibition

The theme for this conference is “Building on Today’s Efficiencies for Tomorrow’s Market.” This will be the basis for the technical agenda…

read more >

The World Future Energy Summit (WFES) 2018

WFES will also hold its annual conference, which sees international government and business experts come together to discuss critical global…

read more >

HYPACK 2018

This training event will offer instruction on the newest features of HYPACK® 2018 as well as comprehensive training for both novice…

read more >

8th Myanmar Oil, Gas & Power Summit

The Myanmar Oil and Gas Summit is the longest established Oil & Gas event in Myanmar. Every year the event is attended by government…

read more >