Business
Contract with BG Int.
Contract with BG Int..
About this update from Plexus Holdings
[{"type":"text","content":"\n Plexus Holdings Plc\n04 September 2006\n\n\nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil equipment & services\n\n4 September 2006\n\n Plexus Holdings PLC ('Plexus' or 'the Company')\n\n\n Five-Year Framework Contract for the Development and Rental\n\n of 20,000psi X-HP/HT Wellhead Equipment with BG International Limited\n\n\nPlexus Holdings PLC, the AIM-traded oil and gas engineering services business,\nhas agreed with BG International Ltd ('BG'), a wholly owned subsidiary of BG\nGroup plc, to develop and supply 20,000 psi ultra or extreme high pressure and\nhigh temperature (X-HP/HT) exploration wellhead equipment, using the Company's\nproprietary POS-GRIPTM technology. The contract, which will see BG fund the cost\nof product development and qualification testing for the new metal to metal\nsealing wellhead system, which contains a tubing hanger designed for 20,000 psi\nservice, is initially for two wells, with a value of £2.3 million. This\nagreement, which is subject to completion of relevant contract terms, is part of\na five (5) year framework contract under which Plexus anticipates that further\nequipment will be supplied to BG for X-HP/HT, HP/HT, and standard 10,000 psi\nwells. The Directors estimate that the total revenues generated throughout the\nduration of the contract may exceed £5.0 million.\n\n\nBG Group plc, is a global natural gas business. Active on five continents in\nover 20 countries, it operates four business segments - Exploration and\nProduction, LNG, Transmission and Distribution and Power. The initial two-well\ndrilling programme is in the Norwegian and UK sectors of the North Sea and is\ndue to commence mid 2007 and complete in circa 12 months\n\n\nPlexus has been steadily building the reputation of its POS-GRIP technology,\nwhich is a new method of engineering for wellheads. In HP/HT applications the\ntechnology combines various operational benefits, which result in safety\nimprovements and installation time cost savings.\n\n\nThe POS-GRIP proprietary adjustable wellhead system is specifically designed for\njack-up rigs, where it eliminates the need to remove the well control equipment\n(the blow out preventer or BOP), when landing and sealing casing, and where it\naccurately manages the casing load applied at the top of the conductor casing.\nThe potential installation time sa...