Plexu
s Holdings (LSE: POS) — the AIM-quoted oil and gas engineering services business — announced this morning that it has received a “significant order” from multinational oil and gas company BG Group, to supply surface wellhead and mudline equipment services for an exploration well in the UK Continental Shelf in the North Sea.
Plexus says that it expects revenues from the contract to begin in December of this year, but the company hasn’t disclosed the value of the order. Plexus’s share price is currently up 2.2% in trading so far today.
Plexus says that it expects the work, which will see it supplying its 18-3/4″ 15,000psi High pressure/High Temperature adjustable surface wellhead and mudline system, to take 150 days. BG’s exploratory well will be drilled using the Transocean Galaxy II rig, following completion of the GDF operated Dalziel exploration well, which is also using Plexus’s wellhead equipment and services.
Plexus has previously supplied wellhead equipment and services to BG, for use on a number of its North Sea exploration and appraisal wells, including the Thunderer, White Bear and Jackdaw III projects.
Commenting on the order, Plexus CEO Ben Van Bilderbeek said:
“This latest order from BG Group, a long standing and valued customer of Plexus, further cements our position as the dominant supplier of wellhead equipment for the HP/HT market in the North Sea which bodes well at a time when a number of Government initiatives are underway to boost exploration activity in the North Sea.
“Together with the provision of first class ancillary services, we strongly believe this winning combination will see us deliver on our objective to replicate our success in the North Sea in other geographies, such as Asia where we are building a significant business hub to service the highly active Asian and Oceania regions. I look forward to providing further updates on our progress in due course.“
At 248,75p, Plexus’s share price is down 9.5% on this time last year, although that still puts it ahead of the AIM 100 index, which is down 10.7% over the same period. And over five years Plexus is positively trouncing its index, with a share price rise of 492%, compared with just 12.7% for the AIM 100.
