Plexus Holdings Plc Sale of POS-GRIP Wellhead Equipment to CIS Partner (1119E)
February 26 2020 - 2:00AM
UK Regulatory
TIDMPOS
RNS Number : 1119E
Plexus Holdings Plc
26 February 2020
Plexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil
Equipment & Services
This announcement contains inside information
Plexus Holdings PLC ('Plexus' or 'the Company')
Additional POS-GRIP(R) Wellhead Equipment Sale to Russian
Licensing Partner
Plexus Holdings PLC, the AIM quoted oil and gas engineering
services business and owner of the proprietary POS-GRIP(R)
friction-grip method of wellhead engineering, is pleased to
announce that its Russian licensee, LLC Gusar ('Gusar'), has placed
an order for an additional set of POS-GRIP(R) exploration rental
jack-up drilling wellhead equipment. This purchase by Gusar is in
response to encouraging discussions between Gusar and its customers
following the successful installation of a first POS-GRIP rental
gas exploration wellhead in Russia for Gazprom (see announcement of
24 September 2019 for further details). Pricing for the equipment
was at market rates and payment will be in cash.
This purchase of additional wellhead equipment for its rental
inventory increases Gusar's capacity to service a higher number of
contracts in Russia and the CIS markets, and reflects Gusar's
confidence in the Russian gas jack-up drilling exploration market.
As one of the three largest gas producers in the world with
significant reserves, Russia represents a major market opportunity
for POS-GRIP wellhead equipment via its Licence Agreement with
Gusar (see announcement of 26 January 2016 for further information
on the Licence Agreement).
Plexus' CEO Ben Van Bilderbeek said: "The acquisition of
additional POS-GRIP(R) exploration wellhead equipment by our
licensee Gusar, so soon after the successful installation of the
first POS-GRIP wellhead for major Gazprom, is highly encouraging
and bodes well for Gusar securing further orders in Russia.
Similarly, we believe the strategic decision taken by our partner
to expand its inventory is a further sign of Gusar's confidence as
it looks to develop and build the Russian market for POS-GRIP
equipment. With this in mind, we continue to support our partner's
efforts to establish POS-GRIP technology in Russia as a new
standard and benchmark in terms of reliability and integrity, as
well as its ability to deliver substantial operational cost
savings.
"With the world moving towards Net Zero solutions, POS-GRIP's
leak-proof capabilities have never been more relevant, or indeed
essential. This is particularly relevant for Russia being a top
three global hydrocarbon producer, and means that the Gusar Licence
has the potential to become a major income generator for Plexus,
and in turn an important component of our portfolio of diversified
revenue streams based around our suite of POS-GRIP products for the
wider energy industry, which we are looking to grow."
Gusar's General Director Alexander Beryozkin said, "We are
pleased with the relationships we our developing with a range of
Russian operators, particularly Gazprom. In particular, we are
encouraged by the interest being shown in upgrading exploration
drilling methods and equipment by deploying POS-GRIP wellhead
equipment to gain access to Plexus' unique sealing capabilities and
operational efficiencies. Following the successful completion of
the 2019 POS-GRIP equipment and services order for Gazprom, we look
forward to building on this important milestone and deepening the
dialogue with the Russian industry at large. There is no question
that Russia should play an active role in curbing the world's
carbon and methane emissions, and we believe that POS-GRIP
technology stands to advance these efforts at the well site."
**ENDS**
For further information please visit www.posgrip.com or
contact:
Ben van Bilderbeek Plexus Holdings PLC Tel: 020 7795 6890
Graham Stevens Plexus Holdings PLC Tel: 020 7795 6890
Derrick Lee Cenkos Securities PLC Tel: 0131 220 9100
Pete Lynch Cenkos Securities PLC Tel: 0131 220 9100
Frank Buhagiar St Brides Partners Ltd Tel: 020 7236 1177
Isabel de Salis St Brides Partners Ltd Tel: 020 7236 1177
NOTES:
AIM-traded oil and gas engineering services company Plexus (AIM:
POS) is an IP led company that has developed a range of products
and applications based on its patent-protected POS-GRIP
friction-grip technology. Plexus is focused on establishing its
technology and equipment in markets beyond jack-up exploration
drilling, including surface production wellheads, subsea and
de-commissioning.
Its suite of ongoing products and applications include: "HG"
wellheads, which combine POS-GRIP technology with gas tight metal
sealing; the Python(R) subsea wellhead (a new standard for subsea
wellheads - developed in a Joint Industry Project supported by
Royal Dutch Shell, BG (now owned by Shell), Wintershall, Total,
Maersk (now owned by Total), Tullow Oil, eni, Senergy (now Lloyds
register), and Oil States Industries Inc); the POS-SET(TM)
connector for the growing de-commissioning and abandonment market;
and Tersus-PCT, an innovative HP/HT tie back connector product.
Importantly, the company also has a collaboration agreement with
TFMC, which provides a platform to further develop and
commercialise these and other applications based on its POS-GRIP
technology.
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END
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