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Plexus Holdings receives North Sea order for POS-GRIP from Centrica’s Spirit Energy

The equipment has been ordered for a new gas well in the UK North Sea.

Plexus Holdings Plc - Plexus Holdings receives North Sea order for POS-GRIP from Centrica’s Spirit Energy

Plexus Holdings Plc (LON:POS) told investors it has received a new order for its POS-GRIP surface production wellhead system, with Centrica PLC (LON:CNA) backed Spirit Energy taking the equipment for a new gas well in the UK North Sea.

Spirit will receive the 5,000psi leak proof metal-to-metal sealing surface production wellhead and associated spares and equipment for the new gas well. It is slated for delivery in February 2021

It is the second order received from Spirit and notably, it is the company’s first new business win since the coronavirus (COVID-19) pandemic struck.

READ: Plexus CEO hails resilience of business model

Milestone payments will be made to Plexus, between signing the purchase order and through to completion. It will be a 120-day contract duration, and Plexus noted that most of the revenues will be booked within the 2020/21 financial year.

In a statement, Plexus' CEO Ben Van Bilderbeek said: "Securing an order for POS-GRIP wellheads in the current climate is positive, particularly when one considers the long lead times associated with the award of such contracts, the ongoing COVID-19 pandemic and the continued volatility in global oil and gas markets.

“Our equipment has proven to be superior in terms of TOTEX performance, reliability, and safety over many years out in the field. In addition, our technology has generated considerable operational cost savings via reduced installation times and reduced non-producing time, by not having to shut down production to carry out maintenance.”

He added: "This order is for a gas production well, and as the cleanest hydrocarbon to combust in terms of CO2 emissions, natural gas is increasingly viewed as a key transitional fuel, as the world moves towards net zero emissions.

“At the well-site, POS-GRIP's leak-proof wellheads can do that and as a result, we believe our production technology delivers a compelling economic and environmental proposition for the surface production operations we are targeting.

“With a substantial pipeline of opportunities, we are hopeful that today's order from Spirit Energy will prove to be a bellwether, as the oil and gas industry begins to emerge from the global COVID-19 pandemic-induced malaise."  

Quick facts: Plexus Holdings Plc

Price: 11.02 GBX

Market: AIM
Market Cap: £11.07 m


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