Business
Sale of Wellhead Equipment to Russian Partner
Sale of Wellhead Equipment to Russian Partner.
About this update from Plexus Holdings
[{"type":"text","content":"\n \nRNS Number : 7994E Plexus Holdings Plc 14 February 2018 \n\nPlexus Holdings PLC / Index: AIM / Epic: POS / Sector: Oil Equipment & Services\n \n \n \n \nThis announcement contains inside information\n \nPlexus Holdings PLC ('Plexus' or 'the Company')\n£1.4million Sale of Wellhead Equipment to Russian Partner\n \nPlexus Holdings PLC, the AIM quoted oil and gas engineering services business and owner of the proprietary POS-GRIP® friction-grip method of wellhead engineering, is pleased to announce the sale of two POS-GRIP 18-3/4\" rental wellhead sets and associated mudline equipment and tooling to LLC Gusar (OOO Gusar) Ltd ('Gusar'), the Company's partner and licensee in Russia, for circa £1.4m ('the Sale'). The wellheads will serve as the basis for Gusar's POS-GRIP rental exploration wellhead inventory, and are planned to be used for gas exploration drilling within the Russian Federation under the exclusive licence agreement ('the Licence Agreement') between Plexus and Gusar and CJSC Konar (ZAO Konar) ('Konar'), two independent Russian oil and gas equipment manufacturers. \n \nThe Sale represents a major milestone towards delivering on one of Plexus' objectives to establish its best in class POS-GRIP equipment in Russia and the CIS, one of the top three hydrocarbon producers in the world with significant gas reserves. \n \nIn January 2016, the Company entered into the Licence Agreement, which conferred to Gusar and Konar the right to manufacture and rent Plexus' proprietary jack-up exploration wellhead and associated equipment within the Russian Federation and the other CIS states. Under the terms of the Licence Agreement, Plexus agreed to sell to Gusar up to three suitably configured POS-GRIP Wellhead Systems as the basis of its own rental wellhead inventory and to help facilitate Gusar's roll-out of rental POS-GRIP Wellhead Systems in the Russian and CIS markets. It is anticipated that the Sale will enable Gusar to secure its first rental order from a major local operator in the near future and may lead to the purchase of a third wellhead in due course. \n \nAs the anticipated pick-up in activity in Russia and elsewhere in the region gains traction, Gusar can as and when necessary add to this initial rental inventory by manufacturing POS-GRIP Wellhead...